Using Low Code To Accelerate Payments Innovation

Independent research conducted by Celent on behalf of Icon estimates that software developer capacity constraints have impacted banks’ payment revenues by 5% over the past two years. This is leading to increasing interest in ‘low code’ tools and platforms to accelerate the delivery of revenue-generating services, while maintaining control of the development process.

The survey of Tier 1 banks in North America and Europe found that the account-based payments processing model remains under significant and sustained pressure. Despite a high interest rate environment, 61% reported that margins are becoming more difficult to maintain amid evolving customer expectations, increasing regulatory demands and the emergence of new competitors.

Key takeaways include:

• 61% of banks reported that margins are becoming more difficult to maintain, despite high interest rates.

• 72% of banks report that they are either using or experimenting with low code software development to some extent in non-card payments.

• Overall, 90% of banks are considering implementing low code in some form in their non-card payment processing infrastructure in the short term