Exploring the Transformation Brought by AI in Low-Code Platform for BFSI Sector

Fintech businesses upended the banking sector more than a decade ago by offering creative, client-focused solutions that exposed the shortcomings of conventional banking institutions. To compete, banks utilized agile development approaches that emphasize incremental progress and adaptability. However, performance, resource allocation, and quicker deployment were still issues with traditional coding.

Banks acknowledged they needed to innovate more quickly without sacrificing security or compliance. By facilitating quicker application development cycles and lowering the reliance on specialist coding skills, low-code development platforms provided an answer. Imagine domain experts, business analysts, and even ‘citizen developers’- those who have extensive knowledge of their company’s needs, can build a solution that minimizes the amount of hand-coding required through low-code platforms.

How Does Low Code Provide a Competitive Edge to Banks?

1. Faster Time-to-Market for Digital Services

Low-code platforms significantly reduce development timelines, allowing BFSI companies to launch new digital services much faster than with traditional coding methods. These platforms offer pre-built templates, drag-and-drop components, and reusable workflows that enable IT teams to quickly develop and deploy banking applications, loan processing systems, and digital wallets. This agility helps financial institutions stay competitive by rapidly responding to customer needs and regulatory changes.

Example:

Banco Santander Consumer Portugal used OutSystems to build a digital loan origination system in just six months, significantly reducing customer onboarding time.

2. Enhanced Customer Experience

Providing a seamless and engaging customer experience is critical in the BFSI sector. Low-code platforms allow businesses to develop intuitive mobile banking apps, self-service portals, and AI-driven chatbots with minimal effort. With built-in integrations for customer relationship management (CRM) and personalized recommendations, financial firms can deliver more tailored services, increasing customer satisfaction and retention.

Example:

Mendix helped Rabobank create a personalized mobile banking app, improving customer satisfaction and retention.

3. Process Automation & Efficiency

Financial organizations handle a vast amount of paperwork and repetitive tasks, such as loan approvals, claims processing, and fraud detection. Low-code platforms enable intelligent process automation, reducing manual effort and improving operational efficiency.

Example:

An Indian insurance provider automated claims processing using Appian, reducing manual work and speeding up settlements by 40%.

4. Regulatory Compliance & Risk Management

BFSI organizations must comply with strict regulations and constantly evolving policies. Low-code platforms simplify compliance by offering built-in security controls, audit trails, and automated reporting features. Financial institutions can quickly adapt to new regulations, ensuring data protection, anti-money laundering (AML) compliance, and fraud prevention. These platforms also facilitate risk management by integrating AI-driven analytics to detect suspicious activities and mitigate potential threats.

Example:

Pegasystems (Pega) enabled First Tech Federal Credit Union to automate regulatory reporting, ensuring compliance with changing laws while reducing human errors.

5. Seamless Integration with Legacy Systems

Many BFSI firms still rely on legacy core banking and insurance systems, which can be challenging to modernize. Low-code platforms support seamless integration with existing infrastructure, enabling digital transformation without disrupting ongoing operations. Through API connectors, cloud services, and microservices architecture, these platforms bridge the gap between traditional systems and modern digital solutions, enhancing efficiency and scalability.

Example:

Openwork modernized its legacy CRM system using Microsoft Power Platform, integrating AI-driven insights for advisors.

The Future of Development: AI & Low-Code

Innovative companies across sectors are using AI to increase operational effectiveness, extract previously unheard-of insights from data, and provide previously unthinkable levels of personalization for their customers. In other words, artificial intelligence (AI) is a fundamental change in how we do business, not merely a technological breakthrough. By 2026, developers outside formal IT departments will account for at least 80% of users of low-code development tools, many of whom will leverage AI-driven capabilities.

Low-code promises to democratize artificial intelligence (AI) and level the playing field so that businesses of all sizes may use AI to achieve organizational goals.

In our article, we delve into the burgeoning AI in low-code revolution, a trend that has gained significant momentum in recent years. We will explore how this technological shif in risk management, fraud detection, and customer relationship management is poised to fundamentally reshape the landscape within the Banking, Financial Services, and Insurance (BFSI) sector in the near future. We will explore the ways AI-powered low-code platforms are being leveraged and the potential impact they will have on efficiency, speed, and overall approaches to risk assessment within BFSI industry.

Low-Code + AI: The Secret to Hyper-Personalized BFSI Sector

Low-code platforms give financial institutions the power to rapidly build and adapt applications without deep coding expertise, while AI brings intelligence—analyzing customer behavior, predicting needs, and delivering tailored solutions in real time.

Here’s why hyper-personalization is redefining financial services with low-code and AI:

• Dynamic, AI-Driven Product Customization – No more one-size-fits-all financial products. AI models built into low-code platforms continuously analyze data to generate personalized credit card recommendations, custom loan structures, or dynamic insurance policies—without human intervention.
• Behavior-Based Financial Coaching – Instead of generic financial advice, AI-powered chatbots built on low-code platforms analyze real-time spending patterns and offer instant, actionable insights—like nudging customers to invest surplus funds or warning them of upcoming overdrafts.
• Instantaneous, AI-Augmented Decision Making – AI-driven risk scoring, credit approvals, and fraud detection can be integrated into low-code workflows, allowing BFSI firms to make real-time decisions without weeks of manual analysis.
• Invisible Banking – Future-forward BFSI firms are embedding AI-powered financial services into everyday life. Low-code enables the rapid deployment of voice assistants, IoT-connected payment solutions, and automated wealth management tools that work behind the scenes—so customers don’t have to “bank”; they live.

The synergy between low-code and AI is pushing the BFSI industry towards a future where banking isn’t just digital—it’s intelligent, predictive, and effortlessly personal. The question isn’t if financial firms should embrace it, but how fast they can.

Future Trends for AI and Low-Code in BFSI Sector

The BFSI sector is undergoing a radical transformation, driven by the powerful combination of AI and low-code platforms. As financial institutions move beyond traditional digital banking, emerging use cases demonstrate how AI and low code will shape the future of BFSI:

1. Generative AI for Hyper-Automation

Banks and insurers will increasingly leverage Generative AI to create automated reports, draft compliance documents, and even generate personalized financial insights for customers. Low-code will provide the infrastructure to rapidly deploy and refine these AI-powered automation tools without extensive coding.

2. AI-Powered Fraud Prevention & Adaptive Security

Future fraud detection systems will be self-learning and adaptive, using AI models that continuously evolve based on real-time data. Low-code platforms will allow financial institutions to rapidly implement new security protocols, integrate behavioral biometrics, and respond to emerging threats with agility.

3. Conversational & Voice-Activated Finance

With voice-first banking gaining traction, AI-driven voice assistants will handle loan applications, investment strategies, and bill payments through natural conversations. Low-code platforms will enable BFSI firms to build and update these AI-powered interfaces without extensive development cycles.

4. Real-Time, AI-Driven Regulatory Compliance

Regulatory landscapes are constantly shifting, and financial institutions struggle to keep up. Future AI-driven compliance tools will analyze new regulations in real-time and automatically update workflows. Low-code platforms will help BFSI firms rapidly adapt their compliance frameworks without disrupting operations.

Indium is a Trusted & Long Stand Partner with Mendix & OutSystem

Mendix and Outsystem, are low-code platform development that empowers businesses to rapidly develop and deploy applications. However, even the most powerful platforms benefit from expert guidance to unlock their full potential. Our partnership allows for tailored services designed to enhance your Mendix development journey across the critical stages of architecture, advanced development, and quality assurance.

By leveraging low-code, Indium can significantly reduce development time and costs, enabling faster innovation, improved customer experiences, and greater operational efficiency for our BFSI clients. This collaborative approach allows for agile adaptation to evolving market demands and regulatory changes, making it a powerful solution for organizations seeking competitive advantage.

A Rapid Evolution Powered by the Catalytic Combination of AI And Low-Code

The winds of change are blowing strong, and the BFSI sector is navigating them with remarkable agility thanks to the dynamic duo of AI and low code. No longer constrained by legacy systems, these institutions are building applications with the speed of a fintech startup, fueled by the intelligence of AI. This transformation isn’t about merely adapting; it’s about leading the charge, creating personalized experiences, and fostering an environment of continuous innovation. The future of finance is being written in low code, powered by the insights of AI.

Get in touch with our experts today to discuss how we can drive innovation and stay competitive in a rapidly changing landscape.