Low-Code Solutions Gain Traction In Banking And Insurance Digital Transformation

Digital transformation without a clear strategy is like setting sail without a destination. Most projects sink before they reach the shore.

Seventy percent of digital transformation projects fail to achieve their desired outcomes.

“Digital transformation is a pretty big statement,” EvonSys CEO Arun MS told PYMNTS CEO Karen Webster. “Are you focusing on digital banking? Are you focusing on improving your operational efficiency? Are you thinking about improving your straight-through processing rates?

“Often, digital transformation programs fail because there’s a lack of clear vision,” he added. “Organizations often jump on the digital transformation bandwagon without a well-defined strategy. They embrace the buzzword without fully understanding what they want to achieve.”

Without this foundational clarity around a transformation roadmap, even the most ambitious projects can ultimately falter. For industries like banking and insurance, which are heavily regulated and burdened with legacy technology, the gap between vision and execution can be particularly wide.

As Arun MS explained, this is where low-code solutions that require minimal technical lift can be implemented to help firms tackle high-level obstacles along their journey to digital transformation.

Navigating the Challenges Defining Digital Transformation

Digital transformations remain far from one-size-fits-all solutions, and the frequently high costs associated with custom software development and lengthy implementation timelines can be prohibitive for many firms.

“At EvonSys, we use a proprietary process mining tool to diagnose and understand the flow of data within an organization,” Arun MS said. “This tool is technology-agnostic and helps identify process bottlenecks, enabling us to develop targeted solutions.”

This diagnostic approach is crucial, he said. By pinpointing where processes are breaking down, companies can focus their efforts on areas that will yield the highest return on investment (ROI). The success of digital transformation programs should be measured not just by completion timelines but by the business value they deliver.

“Digital transformation should be focused on quick wins so that organizations can start seeing the ROI much sooner,” he said, noting that digital transformation is not just about adopting new technologies — it’s about fundamentally rethinking how businesses operate and deliver value to their customers.

One of the recurring challenges he identified is the issue of onboarding in the banking sector. Despite variations in onboarding times from one bank to another, internal inefficiencies often cause delays. A portion of these delays stems from internal traffic rather than external factors.

To address this, Arun MS advocated for a shift toward self-service portals, where customers can take control of processes like document submission.

“Engaging customers as stakeholders in the process reduces internal bottlenecks and speeds up the overall timeline for onboarding,” he said.

This approach not only enhances operational efficiency but also improves the customer experience, which is essential in an increasingly digital world. However, Arun MS was quick to caution that transferring processes to customers must be done thoughtfully.

“It’s not just about shifting the burden from the bank to the customer,” he said. “The customer experience must be frictionless and convenient. Otherwise, we’re just replacing one problem with another.”

The Dual Focus on Efficiency and Customer Experience

The need to innovate while grappling with legacy systems is a daunting task, particularly given that rigid legacy systems and processes can hinder a firm’s ability to adapt to new technologies and business models. However, with a clear vision, data-driven strategies and a focus on innovation, companies can overcome these obstacles and unlock new growth opportunities.

Central to this approach is striking a balance within digital transformation initiatives between improving operational efficiency and enhancing the customer experience, Arun MS said.

Straight-through processing, for instance, is “only effective when it integrates both front and back-office operations,” he said. “For example, our payment investigation platform processes 95% of payment exceptions globally, but its success depends on seamless integration with front-office systems.”

This holistic approach ensures that digital transformation efforts are not siloed but instead deliver value across the entire organization. By aligning operational processes with customer-facing initiatives, companies can achieve the full potential of digital transformation, he said.

“I’m a firm believer that there is going to be a day where enterprises should expect plug-and-play transformations,” he said. “You should not be taking 24 months to start seeing ROI.”