Low-code software development provides rapid growth amid a shortage of technical talent
The rapid pace of change and the need for code in virtually every industry, including banking, has led to major growth in alternative software development methods. “Low-code” and “no-code” are development approaches that are gaining traction amid a technological talent shortage and growing demand from organizations following digital transformation strategies.
Low-code refers to a software development approach where developers build applications in a graphical interface. In practical terms, this means that instead of writing thousands of lines of code and syntax, developers simply need to drag and drop visual models to create applications.
The implications of this are that repetitive and tedious tasks such as dependency management, code validation and complex builds can be removed through automation, allowing developers to focus instead on the creative extra mile that will differentiate their apps from the competition.
Not only that, but low-code is often perceived as the relevant solution for changing customer expectations. Rapid digital adoption in recent years has placed enormous pressure on development teams to deliver increasingly sophisticated apps on ever-shorter timelines, while maintaining, managing and evolving an existing app portfolio. Forrester estimates that low-code development platforms can make software development as much as ten times faster than traditional methods.
Low-code app development gives organizations the ability to close this gap, resulting in increased agility, productivity and, in some cases, improved customer experience. Platforms like OutSystems, for example, offer capabilities necessary to deliver multi-experiences, allowing organizations to address all the ways customers engage digitally (eg touch, voice and gestures).
Common features of a low-code app development platform include a visual integrated development environment (IDE), connections to various backends or services such as data structures, storage and retrieval, and an application lifecycle manager.
The rise of low code
Low code has grown in popularity in recent years, attracting business interest for its ability to allow organizations to deliver sophisticated apps in much less time.
By mid-2021, more than a quarter of senior-level developers surveyed by Forrester reported that their organization developed apps using citizen developers and low-code platforms. By 2025, technology research and consulting company Gartner estimates that 70% of new applications developed by enterprises will use low-code or no-code technologies.
The growth of these platforms has been fueled by the ongoing shortage of tech talent, which organizational consulting firm Korn Ferry estimates had a shortfall of 1.1 million in 2020. This number is projected to increase to 4.3 million workers by 2030.
Global Financial and Business Talent Shortage by Economy; KornFerry
In Singapore, software developers and engineers are currently the most in-demand talent in the financial sector with more than 700 job openings, according to Ravi Menon, CEO of the Monetary Authority of Singapore (MAS).
These drivers, combined with increasing customer expectations and continuous technological advancements, are set to push the low and no code development space upward. By 2030, US market research and consulting firm Grand View Research expects the size of the global low-code development platform market to reach USD 35.2 billion, registering a compound annual growth rate (CAGR) of 22.9% from 2022 to 2030.
In the banking and finance sector, FintechOS is a prominent low-code platform that allows banks, financial institutions and insurance providers to build, test and scale new digital products and services in weeks instead of months.
The London-headquartered startup closed a US$60 million Series B after seeing rapid adoption from financial institutions across Europe. It claims that more than 40 financial institutions are now operating the technology, including Erste Bank, Societe Generale, Howden Group Holdings and Vienna Insurance Group.
Featured image credit: edited from freepik here and here
