As banks worldwide grapple with margin pressures, innovative strategies are crucial. This need for change comes alongside the broader challenges posed by developer constraints. A confluence of such issues and a real-world delay in banking transactions underscores the significance of transformative solutions.
The banking industry’s pivot towards account-based payment processing models has posed unique challenges. While banks might view in-house software builds for payments as the ideal route, this approach often becomes counterproductive. Banks frequently confront cumbersome changes, prolonging the implementation of crucial services. Celent’s study spotlighted a tangible consequence of these challenges. Tier 1 banks in North America and Europe missed revenue-generating enhancement opportunities, translating to a 5% dip in annual payment revenues.
Low code platforms offer a potential solution to these woes. Through standardized, pre-built blocks, these platforms enable swift code creation and changes. This agility can increase developer productivity and even allow non-technical bank personnel to join the development fray. Although promising, this approach isn’t a magic bullet. Implementing it demands a clear strategy and comprehension of underlying architectural needs.
Contrastingly, real-life scenarios, like DBS Bank‘s recent delay with FAST/PayNow transactions, shed light on other operational challenges. Though the bank addressed the problem and communicated updates to its customers, many reported issues persisted beyond the initial resolution. While DBS demonstrated commendable commitment in addressing the situation, the undisclosed delay origins point to an industry-wide need for transparency and efficient problem-solving.
As banks explore transformative solutions like low code, it’s equally essential to address real-world operational setbacks. A two-fold approach—embracing innovation and promptly addressing service disruptions—can redefine banking for the better.
Tackling these challenges head-on will be essential for banks to maintain trust, streamline operations, and innovate effectively. With the right blend of strategy, technological adoption, and customer-centric communication, the banking sector can navigate the complex operational landscape it faces.