Digital Innovation in the Financial Services Sector

How financial services organizations can use no-code to keep up with the pace of disruptive fintech start-ups

Use no-code to:

Keep up with changing regulations

Implement new services at the pace of fintech startups

Tackle legacy system challenges through modernization

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6% market growth by 2022

They say money makes the world go around, and the sheer scope of the financial services sector certainly supports this claim. According to Investopedia, “...market estimates believe that by 2022, the financial services market is expected to reach $26.5 trillion, growing at a rate of 6% during the forecasted period.”

This growth means more players want a piece of the action, with recent times seeing an increase in financial startups and funding in fintech. Fintech disruptors are making waves by not having the same restrictions as traditional organizations, such as legacy systems. It’s no surprise that "60% of traditional firms are seeking partnerships with FinTech startups on a global level…"

We're going to take a closer look at what’s driving this growth, what change looks like, and where no-code fits in. But if you want to dive straight in at the deep end, check out our whitepaper: Digital Transformation in the Financial Services Industry.
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Challenges driving change

Shared challenges

Though the financial sector can be broken down into various sub-sectors — banking, insurance, accounting, trading, real estate, and so on — many of these sub-sectors share common challenges. Some challenges are just as pertinent across all financial sector organizations, such as tackling cybercrime, modernizing legacy systems, and changing regulations. 

For those financial services organizations that are able — and willing — to rise to these challenges by using technology such as no-code, the future looks a whole lot more optimistic.

Financial services sector challenges

  • Financial organizations are “leading targets of cyber attacks”
  • Outdated processes that cost time and money, and are highly error-prone
  • Increasing competition from fintech startups
  • Legacy systems are preventing organizations from moving forward
  • Changing regulations that require fast responses from financial organizations

“The financial services industry contributed towards 62% of exposed data in 2019.”

What does innovation look like?

According to Investopedia, “...fintech funding went up by 82% from 2017 to 2018.” So, what are tech-savvy sector leaders doing to beat the competition, tackle their challenges, and provide innovative new services? Here are just some of the examples:
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Automation 

Sector leaders are using automation for a wide range of tasks, from resetting employee passwords to claims processing, and the cost savings are significant. The Australia and New Zealand Banking Group, for example, deployed automation at scale to see cost savings of 30% annually. 

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Artificial intelligence (AI)

AI is being used to help financial services organizations gain a better understanding of their customers’ needs, meaning they can get better at providing that all-important personalized service.

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Mobile payments 

We’re increasingly moving towards a cash-free world and leading financial services organizations are seeing this as an opportunity to drive innovation in payment methods. As Forbes states, “Consumers want payments to be instant, invisible, and free (IIF).” 

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Cloud computing

Deloitte states that cloud computing could be a “...potential game-changer for how financial services organizations will operate in the future.” Sector leaders are already seeing the benefits of cloud computing in areas such as revenue generation, customer insights, time-to-market, and risk management.

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Biometrics

From facial recognition to signature analysis, biometrics are increasingly being used by leading financial services organizations to help reduce fraudulent activity and improve the customer experience. 

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Data collection

They say data is the new oil and fintech start ups are providing free services in exchange for  consumers’ data. This can take the form of free expense management applications, or commission-free trading platforms. 

“Technology can increase efficiency by automating manual processes, assist in identifying emerging threats, and provide insights into risks and their causal factors.”

Real-life example: self-service portal

Betty Blocks is, by nature, incredibly versatile. This means that our customers in the financial services sector use it for a multitude of applications and are able to gradually form a modern layer around their existing legacy systems. Let’s look at one example in which a financial organization used Betty Blocks to develop an innovative new service and increase customer satisfaction.

Customer case: Snijder Incasso

When debt collection agency Snijder Incasso began receiving requests to develop a self-service portal, they knew they needed to act fast, before they would start to lose clients to the competition.

Because Snijder needed to develop an online portal with all the necessary security, payment, and database requirements, and do it fast, they turned to no-code for the solution.

Betty Blocks was used to build both the frontend and backend of the online portal, which connected to Snijder’s existing legacy system. The solution was so innovative that it was actually a first in the sector! Read more about Snijder and Betty Blocks here.

Key features of the application

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Online payment integration

Repayments can be made in just a few clicks

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Compatibility with existing systems

Clients have a 100% overview of their current account

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Personalized client dashboards

Information is privately displayed with options to chat with consultants

See for yourself in the App Gallery
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Betty Blocks and the financial services sector

We’ve looked at some of the most common challenges faced by the financial services sector, and we’ve seen how leading organizations are using software to tackle these challenges and drive innovation. But where does no-code fit into this?
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Connection to legacy systems

Betty Blocks connects easily to all kinds of existing core systems. As a financial organization, you can speed up your digital transformation by creating a modern layer around outdated legacy systems, thereby reducing technical debt, and pushing forward with your innovation goals. Also, since Betty Blocks is 100% cloud-hosted, you don’t need to worry about updates — we’ll do it all for you automatically.

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What next?

If you’re serious about playing the long-game, you’ll want to consider strategically implementing no-code into your financial services organization — it’s how you can truly take control of building your own software solutions. But you can also start with a single app solution and prove the results of no-code before moving to the next stage; we call this The Betty Blocks Way.

For more information, download our free whitepaper: Digital Transformation in the Financial Services Industry, and get in touch to see how Betty Blocks can help your financial services organization kick-start its no-code journey and stay one step ahead of the competition.