Mendix, a Siemens business and global leader in enterprise application development, has announced the results of its financial services and insurance (FSI) global market survey which reveals how companies in these industries are using low-code to drive digitization, improved experiences, and modernize legacy systems. While the responses of those working for banks and other financial services companies were consistent, the answers from insurance company representatives differed slightly. Among banks and other financial services companies, the biggest perceived low-code benefit is cost savings. In the insurance industry, business agility is the top priority.
“IT departments in highly regulated industries are so busy ensuring compliance that often new revenue-generating and client experience initiatives do not make the priority list,” said Ron Wellman, head of Industry Clouds for Financial Services, Insurance, Retail and Public Sector at Mendix. “Low-code accelerates the rate at which applications, automations, and new digital experiences can be developed and delivered. Many organizations in the FSI space are using low-code to digitize, modernize legacy apps, and integrate client journeys across channels.”
Overall Survey Trends
Nearly all (97%) of survey participants said that low-code meets or exceeds their expectations when it comes to ease of use, increased business agility and fast time to market. While the 97% number seems high, it is likely the result of the robustness and maturity of low-code offerings, and industry awareness of the best use cases for the capabilities. In fact, 61% said low-code enables speed improvements of at least 30%. Those speed improvements reduce the number of resources required to develop and deliver applications and improve organizational collaboration between business and IT.
The makeup of development teams is also shifting, from professional software developers exclusively to professional and citizen developers who collaboratively solve business problems. Mendix defines citizen developers as “business users with little to 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 either already have or are thinking about implementing a citizen development program.
Insurance industry respondents consider the top three low-code use cases to be IT (42%), sales and distribution (23%), and claims (17%). Government regulations are the major concern (44%), though the leading low-code platforms can capture compliance requirements and track how applications meet those requirements. These respondents also said they are most likely to rewrite aging Java applications using low-code, followed by mainframe and SharePoint applications.
Download Mendix’s Whitepaper and Its Free Financial Services Webinar
Financial services and insurance business leaders, C-Level executives are IT Leaders encouraged to download Mendix’s most recent whitepaper, entitled, “Transformational Value: What Every Financial Services Firm Should Know about Low-Code, It explains:
● How organizations are using low-code to spark digital transformation and organizational change
● Where low-code users are prioritizing and where they’re not
● Potential challenges low-code users see and how leading platforms turn those questions into differentiators
● Unexpected value areas that firms are finding with low-code, including enabling a culture of innovation and upskilling employees
Mendix’s webinar, “Transformational Value: The True Impact of Low-Code for Financial Services, is also available on-demand for those looking to gain additional insights about how financial services and insurance organizations are using low-code for digital transformation and what low-code means for the future of business.