Financial services and insurance companies are accelerating digital transformation

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Mendix, a Siemens company and global leader in enterprise application development, today announced the results of its global Financial Services and Insurance (FSI) market research, which reveals how companies in these industries are using low-code to drive digitalization, improve experiences and modernize. legacy systems. While responses from people working for banks and other financial services companies were consistent, responses from insurance company representatives differed slightly. Among banks and other financial services companies, the biggest perceived benefit of low-code is cost reduction. In the insurance industry, business agility is the top priority.

“IT departments in highly regulated industries are so busy ensuring compliance that often new initiatives that drive revenue and customer experience are not on the priority list,” said Ron Wellman, Head of Industrial Clouds for Financial Services, Insurance, Retail and Public Sector at Mendix. “Low-code accelerates the rate at which apps, automations, and new digital experiences can be developed and delivered. Many organizations in the ISP space are using low-code to digitize, modernize legacy applications, and integrate customer journeys across all channels.

General Survey Trends

Almost all (97%) of survey participants said low-code meets or exceeds their expectations for ease of use, increased business agility, and fast time to market. While the 97% number seems high, it’s likely a result of the robustness and maturity of low-code offerings, and the industry’s awareness of the best use cases for features. In fact, 61% said low-code improves speed by at least 30%. These speed improvements reduce the number of resources needed to develop and deliver applications and improve organizational collaboration between business and IT.

The composition of development teams is also shifting from exclusively professional software developers to professional and citizen developers who collaboratively solve business problems. Mendix defines citizen developers as “business users with little or no coding experience who build applications with IT-approved technology and automated adherence to IT governance controls.” According to a recent Gartner report, 61% of organizations already have or plan to implement a citizen development program.

The financial services view

Respondents at banks and other financial services companies are turning to low-code to enable greater organizational agility, which translates to faster project launches and the ability to react quickly to market changes. With so many legacy systems in these organizations, it has been difficult to improve the customer experience or get a 360-degree view of customers because data remains siled across various systems. This group intends to rewrite legacy applications with low code, especially Microsoft SharePoint, Java, and mainframe applications. They also use low-code as a fast and cost-effective way to modernize legacy applications without rebuilding them from scratch.

For example, the Business Development Bank of Canada (BDC) invested millions of dollars and five years in traditional development to help modernize its loan application and approval technology, only to show no deployable solution. After turning to low-code, BDC built a prototype in four days and deployed a solution that automated its processes in less than a year.

Despite its many benefits, half of these survey participants said their top concern with low code was legacy on-premises integration, which is often tied to legacy application integration readiness, competing priorities , legacy IT risk/security policies or internal alignment as Low-code application platform vendors have developed secure and comprehensive data integration and virtualization capabilities across on-premises, cloud-based applications and hybrids. Slightly less (47%) worry about matching the best mobile or creative experiences, but the data shows this is mostly seen with legacy low-code CRM and BPM players.

Insurance Overview

Insurance industry respondents consider the top three use cases for low-code to be IT (42%), sales and distribution (23%), and claims (17%). Government regulations are the top concern (44%), though major low-code platforms can capture compliance requirements and track how apps meet those requirements. These respondents also said they were most likely to rewrite aging Java applications using reduced code, followed by mainframe and SharePoint applications.

Survey methodology

The survey, conducted by Momentive in November 2021, included 1,442 people from Australia, Canada, France, Germany, the Netherlands, Singapore, the UK and the US. Respondents were all identified as the sole decision makers, key stakeholders or responsible party for software manufacturing. purchasing decisions as a service (SaaS). Respondents work in a number of departments, including finance, human resources, marketing, IT, operations, risk/compliance/audit, sales, and operations or product line. Company sizes ranged from 500 to over 20,000 employees. All survey participants said they were at least familiar with low-code.

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