Banking leaders face a stark reality: transform or fall behind. Digital-first competitors are capturing market share through streamlined services and superior user experiences. Meanwhile, legacy systems are preventing traditional institutions from delivering the seamless digital experiences more and more customers demand.
With nearly 75% of IT leaders acknowledging that development backlogs obstruct strategic initiatives, organizations face escalating maintenance costs alongside rising demands for digital services. Yet, traditional development methods remain prohibitively expensive and too slow to meet these challenges effectively.
Low code development platforms present a better option. This article looks at how these platforms are helping the banking industry embrace digital transformation.
Banking modernization through low code delivers four key advantages:
Faster development: Cut application delivery time compared to traditional methods.
Reduced costs: Slash development expenses while improving operational efficiency.
Enhanced security: Use built-in controls to protect sensitive customer data.
Future-ready architecture: Modernize incrementally while reducing technical debt.
This analysis draws from extensive market research, banking case studies, and CLEVR’s experience implementing low code solutions in the banking industry. The findings combine quantitative data on development speed and costs with qualitative insights from banking technology leaders about the modernization of their companies.
More and more fintech competitors are appearing in banking, each armed with impressive mobile-first services and AI-powered personalization. Traditional banks must find ways to compete with digital-only institutions that can offer 24/7 services across phones, tablets, and computers.
This gap between customer expectations and bank capabilities keeps widening. Younger customers demand instant service through digital channels, but many banks rely on core systems that were designed decades ago for branch-based banking. These aging systems and dated business processes cost millions to maintain yet can't deliver basic customer demands like real-time account updates or automated loan approvals.
The pandemic further pushed the shift to online banking. Customers now expect sophisticated mobile banking apps and web interfaces available 24/7. Banks must build these while keeping everything secure and following regulations, and traditional software development methods often don’t cut it.
Low code platforms enable banking modernization through visual development tools and pre-built components designed for financial services. Rather than writing thousands of lines of code for each new application, development teams use visual, drag-and-drop interfaces to assemble applications from pre-tested components.
Think of it as building with digital building blocks, each representing a secure, tested functionality that can quickly connect to create complete banking applications. It transforms how banks tackle their biggest challenges, especially in areas where traditional development methods are weak.
Gartner predicts that in 2025, organizations will build 70% of new applications using low code or no code platforms. It’s a transformation that’s reshaping how financial institutions approach modernization.
Let’s look at the main areas where low code helps banks solve their biggest challenges in digital transformation:
Legacy systems process millions of transactions daily and can't just shut down. Low code lets banks keep running while updating strategically, avoiding risky full-system replacements that disrupt operations. Modern interfaces and workflows build on top of existing systems, bridging old and new technology.
Technology architects call this the “Strangler Fig pattern”—replacing legacy functions gradually while keeping things running. It’s like renovating a house room by room rather than demolishing and rebuilding: The core structure stays while each part gets modern updates.
Banks can use low code to:
Update customer-facing applications without disrupting backend systems.
Add new features gradually through APIs and microservices.
Keep valuable business logic while adding modern capabilities.
Cut maintenance costs through automated testing and deployment.
Real-world example: Rabobank used low code to deliver new web and mobile banking experiences while preserving core system stability.
Banks need exceptional security and regulatory compliance—one breach or violation can devastate their reputation and finances. Low code platforms make security and compliance a fundamental part of each application by building these requirements into the development process.
Pre-configured components handle key regulatory requirements, such as Know Your Customer (KYC) verification for confirming customer identities, Anti-Money Laundering (AML) checks for preventing financial crime, and regulatory reporting. These components come pre-tested and update automatically as regulations change, cutting compliance risk while speeding up application delivery.
Real-world example: Using low code, the Dutch Emissions Authority (NEa) achieved 100% compliance in its regulatory reporting cycle, showing how these platforms handle complex requirements without sacrificing speed.
Low code platforms also change how banks create and refine customer experience. Their easy-to-use visual tools allow for quick prototyping and testing, helping business experts and technical teams collaborate on applications that work better for customers.
For example, banks that once took weeks to process loan applications can use low code platforms to create automated lending portals. These portals can:
Walk customers through application steps.
Automatically validate submitted information.
Sort applications based on risk level.
Provide real-time status updates.
Connect with existing credit systems.
Real-world example: WaFd Bank used low code to build a complete digital banking platform in just six months, giving customers modern self-service tools while cutting operational costs.
Additionally, low code platforms reduce development time while maintaining quality. Professional developers focus on complex features, while citizen developers—non-technical team members—contribute to basic application development.
Real-world example: Using low code, the Business Development Bank of Canada (BDC) accelerated loan processing, created new digital services that support entrepreneurs, and made internal operations more efficient using low code.
Low code platforms deliver measurable advantages for banking modernization:
Cuts development time by 50-90% compared to traditional methods
Speeds up deployment of new features and updates
Reduces testing and maintenance work
Lets business teams contribute directly to development
Frees IT to focus on strategic projects
Needs fewer specialized skills
Delivers high return on investment
Lowers maintenance and support costs
Makes better use of resources
Includes built-in security controls
Automates compliance processes
Standardizes development practices
Faster delivery of digital services
Better customer satisfaction
Quick response to market needs
CLEVR builds banking transformation solutions using the Mendix low code platform, combining deep banking knowledge with proven methods that keep systems secure and compliant.
Take CED, a leading European financial services provider, as an example of how CLEVR drives transformation with low code. CED was struggling with paper-based claims processing before it partnered with CLEVR to create an Automatic Damage Settlement Platform using low code. The results?
50% reduction in claims processing time
Improved customer satisfaction through faster settlements
New revenue streams from platform-as-service offerings
CLEVR’s banking low code solutions focus on:
Connects new applications with core banking systems
Maintains data integrity across platforms
Enables real-time information flow
Includes built-in controls for handling sensitive customer data
Automates regulatory reporting
Provides comprehensive audit trails
Accelerates time-to-market for new products
Enables continuous improvement
Supports agile methodologies
Creates seamless customer journeys
Enables omnichannel banking
Offers personalized service delivery
The banking sector faces unprecedented pressure to modernize. With their long development cycles and heavy resource requirements, traditional development methods can’t match the speed and flexibility modern banking demands. Low code platforms offer a proven path forward, combining rapid development with the enterprise-grade security banks require.
However, success requires more than modern technologies. It demands a clear digital transformation strategy aligned with business goals. For banks beginning their modernization journey, CLEVR’s comprehensive guide to low code provides a detailed roadmap for getting started. You can also explore CLEVR’s low code solutions designed for enterprise needs or contact the CLEVR team for a personalized consultation focused on your modernization goals.