According to Statista, last year, there were over 10.000 fintech startups in the U.S. alone and over 26.000 on a global scale. The reasons behind such growth are pretty obvious. In today's fintech, products are created based on the maximum convenience and speed they provide. The market is saturated by customer-centric services that solve particular user needs fast.
Despite the ongoing crisis and the Great Resignation, more and more fintech startups appear on the scene. First, it's all about accessibility. In the world of modern finances, technology plays a secondary part. I mean, having a strong engineering team to build a specific product is no longer as pivotal to product success as it used to be. What matters the most is whether this product satisfies user needs or not.
No wonder the number of low-code developers (aka citizen developers) is growing worldwide. Just check out the graph below:
As of today, it's never been easier to jump on the fintech bandwagon or reimagine the legacy infrastructure. You can create an MVP, test your product idea, and release a product, even if you don't have the budget for the engineering team (which is often the case for startups). As John R. Rymer, a senior analyst at Forrester and world expert on low-code put it "There are just not enough developers to go around, so by going low-code, you can get a lot done with ordinary developers that you can afford."
I guess this level of accessibility from the technical standpoint is the major contributing factor. But what are the others? Let’s find out.
Why low code is popular among fintechs
Before we plunge into details, let's make sure that everyone's on the same page and gets the definition right.
What is fintech:
Fintech (or FinTech) (short for financial technology) is a catch-all notion that encompasses various finance-related technologies, corresponding products/apps/platforms, and companies (often called fintechs).
What is low code:
Low-code development is an approach in software creation that requires little coding skills. Instead, citizen developers can create applications using pre-made components and graphical interfaces.
Low-code/no-code platforms allow fintechs to stay ahead of regulations and industry changes while adhering to high-security standards. Such platforms help financial entities to respond to market changes faster with in-house development teams.
Regulations compliance
AML, KYC, you name it. Low-code platforms provide speed and efficiency while adhering to the certain level of transparency that regulators and compliance requirements demand.
Automation
The current trend in fintech is the optimization and automation of business processes in all areas, especially in the field of customer service and BI.
Speed
You can test your hypothesis and build a customer-centric project within weeks, not months. Literally.
Non-costly MVP creation
Both low-code and no-code tools facilitate the process of creating an MVP owing to a rich variety of visual programming and reusable components.
Modernization of legacy systems
Low-code platforms work just right when you need to update a legacy banking application. We’ll talk about this point in detail in the “Low-code/fintech business cases” section.
Building internal tools
Here at Akveo, we use a lot of internal tools, so we know how powerful they are. Low-code solutions provide the best way to build internal tools on top of databases and APIs. You can build custom applications for transactions, anti-fraud, risk assessment, and more.
Fintech-targeted low-code platforms
Low code in software development is universal for any domain, but there are several low-code builders targeted precisely at fintechs. The list of platform vendors is growing, but let’s check some of the options, shall we?
In September this year, a fintech startup Toquio made the headlines. Toquio is a low-code fintech-as-a-service platform that provides its users with the opportunity to build fully customizable digital bank-grade solutions.
The company managed to raise €20mn in funding. The startup’s founders took inspiration from Salesforce, and now they are promoting the idea that companies don’t need to build everything from scratch in order to improve on what they already have.
Meet FintechOS, a low-code platform targeted at banks, financial institutions (FIs), and insurance providers. The platform allows citizen developers to build and deploy custom financial service products regardless of the legacy infrastructure of their business.
Again, the platform’s benefits align with the ones we’ve mentioned earlier. As their CEO Kulkarni said, “Our mission is to help these financial services with institutionalizing innovation at a much larger scale, and more importantly, at a much faster pace.”
Another platform is Hydrogen, a low-code platform that, in their own words, “helps any company offer financial services”. The company's mission is straightforward: Hydrogen aims to transform businesses from consumers into fintech producers.
Low-code/fintech business cases
According to Mendix's survey, 63% of senior finance decision-makers believe low-code has all it takes to reimagine how multi-tiered financial systems are done. Industry experts consider simplification as a crucial factor. But what about actual business cases? Let's check some of the fintech projects done with low code.
The client: Ramp.
The challenge: The company needed to develop internal tools that cover a lot of areas: view and change customer data, perform acts of service for a customer, analyze data, etc.
The numbers: Ramp developed 100+ (!) internal tools in less than a year using a popular low-code platform Retool. Plus, they managed to build a robust risk management tool - all with low code. Check out the screenshot below:
The outcome: So what about the outcome and saved costs? Let’s hear the client. Geoff Charles, Head of Product at Ramp, calculated this to be close to $200,000 in costs, not to mention the speed of development.
Let’s go further, here’s one more business case from the Netherlands.
The client: CA CF NL Consumer Finance Nederland B.V., a key player in the European consumer credit market with a portfolio of 2+ billion euros.
The challenge: The company chose OutSystems as their low-code platform to allow their integration partner to perform legacy system modernization. "The core banking system and ESB are critical to our business, so the transition had to be done right in one go," commented Erwin Kooiman, senior manager IT at CA CF NL.
The outcome: The modernization was a huge success. Now the business builds new applications for company subsidiaries, all with low-code.
Let’s move on. Another client is the bank from Argentina.
The client: Banco de la Provincia
The challenge: The bank needed to develop a digital wallet fast.
The outcome: Using Veritran, a low-code builder targeted at fintechs, Argentina’s Banco de la Provincia developed Cuenta DNI, a digital wallet approached by 1 million active users within a month and has now surpassed 3 million users.
Another business case is again from the Netherlands.
The client: Rabobank, a Dutch multinational bank.
The challenge: The bank wanted to develop an online banking portal.
The outcome: The bank used Mendix to create its online banking portal that manages €18 billion for half a million clients. Following the portal’s release, the bank reported a 50% savings in IT costs.
Last (but not least) is the business case from the UK.
The client: Aviva, an insurer from the UK.
The challenge: Aviva wanted to combine data from 22 systems and develop a single customer view.
The outcome: The company used Appian to accomplish the task, which resulted in more efficient call center operations. The customer service response times improved by nearly ten times, and the company reduced costs by 40%.
Key takeaways and what to expect in 2023
The accelerated digitization of the banking sector comes with unprecedented new opportunities for any party involved: fintech startups, banks, low-code platforms and integrators, and, surely, users. Modern fintech encompasses technology, data, analytics, and low code to ensure the further growth of the domain. With all that being said, let's summarize what low code offers to fintechs in 2023.
Supporting digital transformation. In 2023, low-code systems will ultimately reimagine the standard application development cycle, making it a lot easier for non-techies and project teams. Thus, such builders will be used as the core of the digital transformation infrastructure - a tool for obtaining impressive results in the shortest possible time.
More ideas are possible.“The low-code movement is getting quite powerful,” said Chris Carvalho, chief executive of Global Smart Processes. “People with very little IT experience are trying to develop applications and enter the world of software with their own ideas and ways of programming.”
Meeting regulatory requirements. The world of finance is a volatile world where regulatory requirements change rapidly, and businesses have to comply real fast. Low code software development makes quick app creation viable in such a scenario. This way, you’ll meet regulatory requirements quickly and steer clear of possible hindrances throughout 2023.
Building a robust ecosystem. Low-code and no-code platforms help users adopt a "builder culture” so they can become creators in their own right. Plus, the best practices and collaborative approaches are shared across an extended ecosystem to make it even stronger.
Thriving startup scene. Despite the recession, fintech is still the biggest interest for VC funds, attracting nearly 20% of overall investments. Fintech ventures raised $128B in investments in 2021, and now we have 500 fintech unicorns worldwide. Low code platforms have contributed to these numbers to a large extent.
Low-code Hall of Fame
Being curious low-code aficionados, we’ve analyzed the market and reviewed the most powerful low-code/no-code builders available in the market in 2022. I think the list will be more or less the same in 2023. So are you interested to know all the ins and outs? Take a look at these platforms:
Do you have feedback on any of the tools above? In case you do, please don’t hesitate to share your comments.
To sum up
In that regard, low-code builders provide several major advantages to fintech startups and established institutions alike. Last year, the survey by Forrester shared quite fascinating numbers: nearly 25% of senior-level engineers indicated that their company created applications with low-code platforms. Gartner estimates that 70% of new applications developed by enterprises will use low-code or no-code technologies by 2025.
The current times are all about changes, both in economic and social spheres, and the domain of fintech is no different. As of 2022, we’re witnessing the rise of digital ecosystems that include various financial services in one place. The traditional banks themselves are becoming a part of these ecosystems.
Let’s see the chart:
Hire low-code fintech experts
Fintech is rapidly developing in the increasingly cashless world, so financial products and services are becoming affordable for more and more people. Although software development with little coding is getting increasingly popular worldwide, you might need an experienced technological partner to get the maximum result out of your efforts.
What about making an alliance with low code/no code development experts? With 8+ years of low-code development experience, we help businesses deliver powerful and secure applications that cater to specific business needs. Plus, our vetted consultant team provides advice on low-code platforms for companies willing to innovate. Our team will help you define the very first steps so you can start implementing your low-code strategy from day one.
P.S. As you might have already guessed, we love writing about trends in low code (and fintech too). Subscribe to our blog to get the latest insights right in your inbox.
Retool Dashboards with HubSpot Integration
Our client needed a centralized tool to aggregate account and contact activity, improving visibility and decision-making for the sales team.
The solution
We built a Retool application integrated with HubSpot, QuickMail, and Clay.com. The app features dashboards for sorting, filtering, and detailed views of companies, contacts, and deals, along with real-time notifications and bidirectional data syncing.
The result
- MVP in 50 hours: Delivered a functional application in just 50 hours.
- Smarter decisions: Enabled data-driven insights for strategic planning.
- Streamlined operations: Reduced manual tasks with automation and real-time updates.
Lead Generation Tool to Reduce Manual Work
Our client, Afore Capital, a venture capital firm focused on pre-seed investments, aimed to automate their lead generation processes but struggled with existing out-of-the-box solutions. To tackle this challenge, they sought assistance from our team of Akveo Retool experts.
The scope of work
The client needed a tailored solution to log and track inbound deals effectively. They required an application that could facilitate the addition, viewing, and editing of company and founder information, ensuring data integrity and preventing duplicates. Additionally, Afore Capital aimed to integrate external tools like PhantomBuster and LinkedIn to streamline data collection.
The result
By developing a custom Retool application, we streamlined the lead generation process, significantly reducing manual data entry. The application enabled employees to manage inbound deals efficiently while automated workflows for email parsing, notifications, and dynamic reporting enhanced operational efficiency. This allowed Afore Capital's team to focus more on building relationships with potential founders rather than on administrative tasks.
Learn more about the case
Retool CMS Application for EdTech Startup
Our client, CutTime, a leading fine arts education management platform, needed a scalable CMS application to improve vendor product management and user experience.
The scope of work
We developed a Retool application that allows vendors to easily upload and manage product listings, handle inventory, and set shipping options. The challenge was to integrate the app with the client’s system, enabling smooth authentication and product management for program directors.
The result
Our solution streamlined product management, reducing manual work for vendors, and significantly improving operational efficiency.
Building Reconciliation Tool for e-commerce company
Our client was in need of streamlining and simplifying its monthly accounting reconciliation process – preferably automatically. But with a lack of time and low budget for a custom build, development of a comprehensive software wasn’t in the picture. After going through the case and customer’s needs, we decided to implement Retool. And that was the right choice.
The scope of work
Our team developed a custom reconciliation tool designed specifically for the needs of high-volume transaction environments. It automated the processes and provided a comprehensive dashboard for monitoring discrepancies and anomalies in real-time.
The implementation of Retool significantly reduced manual effort, as well as fostered a more efficient and time-saving reconciliation process.
Creating Retool Mobile App for a Wine Seller
A leading spirits and wine seller in Europe required the development of an internal mobile app for private client managers and administrators. The project was supposed to be done in 1,5 months. Considering urgency and the scope of work, our developers decided to use Retool for swift and effective development.
The scope of work
Our developers built a mobile application tailored to the needs of the company's sales force: with a comprehensive overview of client interactions, facilitated order processing, and enabled access to sales history and performance metrics. It was user-friendly, with real-time updates, seamlessly integrated with existing customer databases.
The result? Increase in productivity of the sales team and improved decision-making process. But most importantly, positive feedback from the customers themselves.
Developing PoC with Low Code for a Tour Operator
To efficiently gather, centralize, and manage data is a challenge for any tour operator. Our client was not an exception. The company was seeking to get an internal software that will source information from third-party APIs and automate the travel itinerary creation process. Preferably, cost- and user-friendly tool.
The scope of work
Our experts ensured the client that all the requirements could be covered by Retool. And just in 40 hours a new software was launched. The tool had a flexible and easy-to-use interface with user authentication and an access management system panel – all the company needed. At the end, Retool was considered the main tool to replace the existing system.
Testing New Generation of Lead Management Tool with Retool
Our client, a venture fund, had challenges with managing lead generation and client acquisition. As the company grew, it aimed to attract more clients and scale faster, as well as automate the processes to save time, improve efficiency and minimize human error. The idea was to craft an internal lead generation tool that will cover all the needs. We’ve agreed that Retool will be a perfect tool for this.
The scope of work
The project initially began as a proof of concept, but soon enough, with each new feature delivered, the company experienced increased engagement and value.
We developed a web tool that integrates seamlessly with Phantombuster for data extraction and LinkedIn for social outreach. Now, the company has a platform that elevates the efficiency of their lead generation activities and provides deep insights into potential client bases.
Building an Advanced Admin Portal for Streamlined Operations
Confronted with the need for more sophisticated internal tools, an owner of IP Licensing marketplace turned to Retool to utilize its administrative functions. The primary goal was to construct an advanced admin portal that could support complex, multi-layered processes efficiently.
The scope of work
Our client needed help with updating filters and tables for its internal platform. In just 30 hours we've been able to update and create about 6 pages. Following features were introduced: add complex filtering and search, delete records, styling application with custom CSS.
Together, we have increased performance on most heavy pages and fixed circular dependency issues.
Creating MVP Dashboard for Google Cloud Users
Facing the challenge of unoptimized cloud resource management, a technology firm working with Google Cloud users was looking for a solution to make its operations more efficient. The main idea of the project was to create an MVP for e-commerce shops to test some client hypotheses. Traditional cloud management tools fell short.
The scope of work
Determined to break through limitations, our team of developers turned Retool. We decided to craft an MVP Dashboard specifically for Google Cloud users. This wasn't just about bringing data into view; but about reshaping how teams interact with their cloud environment.
We designed a dashboard that turned complex cloud data into a clear, strategic asset thanks to comprehensive analytics, tailored metrics, and an intuitive interface, that Retool provides. As the results, an increase in operational efficiency, significant improvement in cost management and resource optimization.
Elevating CRM with Custom HubSpot Sales Dashboard
Our other client, a SaaS startup, that offers collaborative tools for design and engineering teams, was on a quest to supercharge their sales efforts. Traditional CRM systems were limited and not customizable enough. The company sought a solution that could tailor HubSpot to their workflow and analytics needs.
The scope of work
Charged with the task of going beyond standard CRM functions, our team turned to Retool. We wanted to redefine how sales teams interact with their CRM.
By integrating advanced analytics, custom metrics, and a user-friendly interface, our developers provided a solution that transformed data into a strategic asset.
In 40 hours, three informative dashboards were developed, containing the most sensitive data related to sales activities. These dashboards enable our customer to analyze sales and lead generation performance from a different perspective and establish the appropriate KPIs.
Building a PDF Editor with Low-Code
Our client, a leading digital credential IT startup, needed a lot of internal processes to be optimized. But the experience with low-code tools wasn’t sufficient. That’s why the company decided to hire professionals. And our team of developers joined the project.
The scope of work
The client has a program that designs and prints custom badges for customers. The badges need to be “mail-merged” with a person’s info and turned into a PDF to print. But what is the best way to do it?
Our developers decided to use Retool as a core tool. Using custom components and JavaScript, we developed a program that reduced employees' time for designing, putting the data, verifying, and printing PDF badges in one application.
As a result, the new approach significantly reduces the time required by the internal team to organize all the necessary staff for the conference, including badge creation.
