Taking a strategic approach to software architecture is a priority for 2022 and financial firms are re-evaluating and modernising their underlying architecture. Digital transformation projects lean hard on IT teams – and developers have become increasingly stretched. Consequently, they have limited availability to undertake critical and time-sensitive tactical development work to knit together legacy systems and new applications, or to create add-on code to enhance legacy systems. As a result, the business is experiencing far longer lead times before necessary development work can be completed. A pragmatic solution is to empower developers with technology that can accelerate their own capabilities. One such approach is to utilise low-code technology components, which can be assembled by developers to rapidly build applications using standardised features, allowing them time to focus on proprietary components that have high business value.
There are six key reasons for software development in financial firms: to respond to newly identified business opportunities; to reduce the complexity of systems; to enhance a system’s performance / scalability; to reduce operational risk associated with manual or unobservable factors; to reduce the cost of supporting and maintaining current systems; and to comply with new regulation that has made current solutions no longer viable. Much of the technology in financial firms is used for non-differentiating purposes and is similar from firm to firm. Indeed, many vendors offer effectively commoditized platforms to undertake these non-differentiating tasks. Even so, new systems – those built in-house and those provided by third-party technology vendors – need to be integrated and maintained within a web of applications that link complex processes together. The integrations between the applications and platforms make each financial firm’s technology landscape effectively unique. So, even buying a platform or application requires substantial development work.