Is WealthTech’s future in no-code technology?
In WealthTech, No-code technology is rapidly becoming a key trend in software development. No-code technology will be the go-to solution for wealth managers as they increase their exposure to digital service providers.
According to the research company, Gartner 70% of all new enterprise applications will be developed using no-code or lower-code technology by 2025, up from 25% in 2022.
What is no-code technology exactly? This technology refers to software products that can be implemented quickly and without programming knowledge. These solutions can be digitized quickly with significantly fewer IT resources by using prebuilt configurations and graphical user interfaces. Businesses can customize products without the need to hire coders.
Another report states that by 2024, 82% of all technology products and services will have been created by people who aren’t technology professionals.
It is easy to see why technology is appealing with the current focus on digital transformation and personalization & WealthTech. It all depends on what problem needs to be solved.
“I love to work with no-code platforms and build my own components through coding. You will struggle to create unique experiences if you only use no-code solutions.
For example, that you would use a no-code solution to build a website or create a portal for WealthTech management customers. This will allow you to gain experience in development and give you an idea of the possibilities. After the site is up and running for some time, We will use his knowledge to create an exceptional customer experience using his own code.
Fredrik Davies, the co-founder of financial analysis API developer Kidbrooke, sees little benefit to the technology. Davies stated, “I am sceptical of low/no-code solutions overall. The platform will only allow you to do what it allows. It is rare that people are trained in each solution as opposed to more general programming languages. This does not eliminate the need to have skills in software development & WealthTech, as any large project will require traditional dev operations.
Is no code better for WealthTech scalability?
There is clearly increasing interest in low-code and no-code technology. We believes that this trend is also occurring in WealthTech management, where firms see technology as a way to easily start a business without having to make large investments in development.
It’s no secret that legacy technology has held firms back. Firms have often been limited by legacy technology, which has made it difficult for them to adapt to new solutions. As a result, they are keen to scale. It is a good idea to have scalable solutions that are able to scale in the future. Like most software, no-code technology has its pros and cons.
We think that it all depends upon the company’s needs. If a company launches a customer portal that allows a few thousand customers to log in a few times per month to view their portfolios, then there will be no problems with scaling performance. We believes that full control over the code is necessary if a company releases a data-intensive day trading platform that requires low latency.
We think that no-code is a better option for WealthTech maintenance and development because it doesn’t require staff to learn complex code, especially new joiners.
We also pointed out potential problems with scaling when using no-code technology. He stated, “Maintenance because you have to train individuals specifically on the solution. Flexibility since you can only do certain things within the framework the low-code solution.”
VP for industry marketing at customer conversation management software provider Smart Communications, stated that wealth managers already enjoy no code. Many are changing their business processes away from static web forms and PDFs to guided digital interviews. This allows for a more personalized, adaptive customer experience.
The adaptive digital and mobile interview systems are interconnected with the core systems. This eliminates the need to rekey or upload documents. As market conditions change or regulations change, questions and rules can be modified quickly.
All of this while adhering to internal security and data management guidelines. Complex documents and packages can be created on demand and sent automatically via signature to simplify the customer experience.
Smart IQ is easy to implement in a matter of weeks, thanks to pre-built and validated connectors that connect to most core banking systems.” It’s low-code and designed for business users. No programming or Java skills are required. Analysts or other non-technical users are able to further control a variety of visual and brand elements, including logos, colors and typography. They can also view the live preview which allows them to make changes immediately and in context.
We also highlighted the benefits of no-code technology. They claim that it increases operational efficiency and reduces paper and manual work when opening, collecting, servicing, reporting and servicing data. You can also expect to see improved data quality, eliminating Not in Good Orders rates, and faster speed to market through quicker onboarding of new investments. This will improve customer satisfaction and increase revenue.
We stated that no-code allows for more efficient use of resources through reducing manual workloads, and reducing IT development costs by providing easy-to-use interfaces.
However, companies must be aware of the challenges before diving into the no-code world. We also stated that the lack of knowledge in these specialized solutions is more important than general programming skills.
Willebrand also spoke out about the challenge of flexibility. There is a limit to what can be done with standardized components even if they can be configured. However, not everyone will have to exceed these limits. “It depends.” This is the most frustrating, but also the true answer I get from my developer’s friends during our discussions.
We also highlighted the danger of being too excited about the hype and not properly assessing the solutions before engaging in no-code solutions. “You have to find a balance between paralysis and analysis and jumping too soon.” There is always risk in any project, whether small or large. It is possible to jump the gun too soon if the barrier to entry is lower.
It might seem tempting to jump right in, but firms should be clear about their goals and have a plan and vision.
It is important to have a long-term outlook. The systems and platforms within finance should be purchased in the same manner as companies buying Salesforce CRM systems or Atlassian project management systems. It shouldn’t take a team of consultants for one year to find a solution. You or a single consultant should be capable of getting it working for you.
We warned companies to think carefully before embracing the technology. We stated that “No code/low code applications aren’t a panacea to all your problems.” We said that the risk of information chaos and bad apps is increased by using multiple platforms and solutions. IT teams must have systems governance processes in place to support business agility as well as information security.
We always said, “No code solution is always designed to scale to enterprise needs. Customers today are not forgiving when a system fails.”
“It’s not enough to focus on interoperability with your core systems. It is difficult enough to live in data silos using legacy software. Your business users shouldn’t create more silos. IT leaders must partner with business users to establish the data connections that they require, and then ensure they are able to manage the day-to-day changes and optimizations. IT must ensure that training is not neglected by the business, otherwise, the system could end up on the virtual shelf.”
We looked into the future for no-code technology and concluded that “No one wants a global pandemic.” However, most industry experts agree with our conclusion that digital innovation has been accelerated by the shift in customer behavior to digital channels since 2022. IT leaders must now create a strategy to differentiate themselves from the rest.
“This competition pressure will continue growing. Celent reports that Microsoft estimates that 500 million more apps will be created by 2026 than in the past 40 years. WealthTech Applications demand is increasing five times faster than IT departments can meet it.
IT leaders must take a step back from their desire to control and consider how low/no-code solutions can reduce the burden on their department and provide value to the business in weeks and not years.