Financial services companies must consistently modernize operations while maintaining security, compliance, and customer trust. But many struggle with this balance: 76% of chief information officers report rising demand for new digital products, while a third of transformation projects experience delays. These pressures create real operational risks, and the cost of maintaining legacy technology in the financial industry increases by 7.8% annually.
Low code platforms offer compelling solutions to these challenges. These platforms enable rapid application development with minimal coding, helping financial services firms accelerate digital transformation while maintaining compliance and security standards.
This article explores 5 pressing challenges in the financial services industry and demonstrates how low code solutions address each.
Financial services firms face 5 key challenges that low code technology helps solve:
Regulatory compliance burdens strain resources and slow innovation. Low code platforms automate compliance workflows and provide built-in audit trails, reducing manual oversight.
Legacy systems and infrastructures create technical debt and restrict modernization. Low code enables gradual modernization through modern interfaces that connect with existing infrastructure.
Cybersecurity threats and fraud demand robust yet flexible protection. Built-in security features and automated updates in low code platforms provide enterprise-grade protection.
Rising customer expectations require seamless digital experiences. Visual development tools help teams rapidly build and refine customer-facing applications, reducing delivery time.
ESG requirements add complexity to reporting and operations. Low code platforms improve sustainability tracking through automated data collection and flexible reporting tools.
The financial services industry grows more complex each year. New regulations, evolving customer preferences, and emerging technologies create both opportunities and obstacles. Low code platforms—visual development environments that minimize manual coding—help you tackle these challenges through rapid application development and built-in compliance features.
Let’s examine the five most significant challenges facing financial services firms today to understand how low code technology provides practical solutions.
Regulatory compliance dominates financial services operations. Firms using traditional development methods must dedicate a significant portion of their resources to compliance tasks, which detracts from innovation and growth initiatives.
Low code development changes this by automating compliance workflows and enabling real-time monitoring. Instead of writing extensive custom code for each regulatory requirement, teams use visual interface tools to configure pre-built compliance components. This approach dramatically reduces development time while ensuring consistent standards.
It doesn’t stop there. Modern low code platforms also support:
Automated tracking of system changes for audit purposes
Flexible workflows that adapt as regulations evolve
Pre-configured components for common compliance tasks
Real-time monitoring and reporting
Secure integration with existing compliance systems
Case study: The DSI Foundation is a good example of improved compliance capabilities. When the Netherlands implemented new banking conduct regulations, DSI needed a compliant handling system built in less than 2 months. Using Mendix low code with CLEVR, the DSI Foundation now has a system that processes sensitive customer data while meeting strict legal requirements. The system includes automated audit trails, encrypted data transmission, and regular security verification—all configured through visual tools rather than custom coding.
Many financial institutions rely on decades-old core systems. It’s a costly trap—critical systems become too expensive to replace yet too rigid to support modern needs.
Low code platforms provide an elegant solution through modern integration capabilities. Rather than attempting risky “rip and replace” projects, your company can gradually modernize by wrapping new interfaces and functionality around existing systems. In other words, you can preserve essential legacy operations while keeping up with customer demands.
Low code’s flexible architecture also supports:
Modern web interfaces connected to legacy backends
Gradual transformation of outdated processes
Integration across multiple data sources
Preservation of critical business logic
Reduced maintenance through automation
Case study: Consider EOC, a marine insurance specialist transitioning from paper processes to digital operations. CLEVR transformed its application system without disrupting its core business logic or requiring a complete system overhaul. The new platform, built on Mendix, reduced processing time from days to hours while maintaining complete integration with existing infrastructure.
Beyond protecting massive amounts of sensitive data, financial institutions must adapt to evolving threats while maintaining regulatory compliance. Traditional security approaches often prove too rigid to keep pace.
Low code platforms build security into the development process itself rather than treating security as an afterthought. They include features for authentication (verifying user identities), encryption (scrambling data to prevent unauthorized access), and secure data handling.
Modern low code security capabilities also include:
Automated security updates and patches
Proactive threat detection
Compliant data handling procedures
This “security-first” approach helps firms maintain robust protection without sacrificing development speed.
Case study: CLEVR helped CED, a European claims specialist handling €2.5 billion in transactions, create a secure claims processing system by using Mendix, a low code platform. The resulting platform includes granular access controls (precise management of who can access what data), end-to-end encryption (protecting data throughout its entire journey through the system), and secure communication channels—all configured through visual tools rather than complex custom code.
Digital leaders like fintech firms have raised the bar for customer experience (CX). Traditional financial institutions must now deliver seamless digital interactions across all channels, greatly improving CX and customer satisfaction.
Low code platforms accelerate customer experience transformation through rapid development capabilities. Business users and developers collaborate using visual tools to quickly build and refine customer-facing applications, which speeds time to market while ensuring solutions genuinely meet user needs.
Beyond this, key customer experience capabilities include:
Seamless multi-channel experiences
Components optimized for financial services
Quick refinement based on feedback
Integration with customer systems
Case study: Zilveren Kruis, a health insurance organization serving over 5 million customers, used low code with CLEVR and gained a suite of customer applications without increasing costs. The platform’s pre-built components and visual development tools enabled rapid iteration based on user feedback. The result? Zilveren Kruis delivered better service while maintaining cost control.
Environmental, social, and governance (ESG) requirements create new challenges for financial institutions. Beyond tracking complex sustainability metrics, firms must develop green investment products to meet growing demand, which requires new capabilities for data collection, analysis, and reporting.
Low code platforms, such as Mendix, streamline ESG operations through automated data collection and flexible application design. This provides valuable insights while ensuring faster time to market for sustainable investment products.
The technology’s visual development tools also make way for:
Sustainability reporting and analytics
Green product development
Regulatory compliance tracking
Low code platforms are excellent solutions for financial services challenges. Beyond accelerating development, they provide integrated security, compliance, and customer experience capabilities. This helps firms innovate while maintaining the high standards their industry demands.
Looking to learn more about low code solutions for financial services? CLEVR’s resources provide deeper insights: