back to blog

Why no-code is the next thing for fintech



No-code has become popular across the industries. Forrester predicts that the no-code, low-code development platforms market will grow to $21.2 billion by 2022, up from $3.8 billion in 2017.

It would seem that here it is, an ideal environment for developing almost any IT product for specific business needs without the need for programming skills. What else is needed? But alas, not all businesses fully understand the value of such an opportunity.

In fintech, the use of custom development or legacy banking software is still an axiom. Banks are afraid to experiment with novelties and prefer to be “like everyone else”, while fintechs are afraid of losing their “tech” self and being left with a “fin”, losing their unique technology in the user code.

Nevertheless, no-coding is the direction the future is heading towards. All technologies are moving towards simplification, and no-coding is one of such simplifications, which should not be afraid of.

Problem overview

Undoubtedly, custom development is not something that should be written off and in some cases it is really the best option. Still, in order to understand which development method to give preference to, troublesome spots should also be walked through.

Code can be stolen

One of the threats is that custom code can be stolen by the people who work on it. If this happens, the company and its customers could suffer enormous damage. And the saddest thing is that often in this case the company has no practical legal leg to stand on.

Rigid system, not flexible to integrate

Legacy systems create barriers to integration with internal and third-party applications. Integration via flat files, batch processes, or manual data entry is error-prone and inefficient.

Bugs are expensive

Another point is that the credit flow is not something unique; it is similar from business to business and often requires the same steps. Internal developers make the same bugs when developing custom loan management code. In the case of custom loan management software, you can’t use ready-to-go connectors and integrations, but develop everything from scratch. And the most frustrating thing is that then, if you fail or want to change some integration, you will have to start from the very beginning. So terms and resources become unpredictable and investors don’t like it.

You develop, your competitors make money

The process of developing a loan application from scratch can take months at best, and at worst, if bugs need to be fixed, it can take up to a year. Meanwhile, your competitors will be in full swing to issue loans and earn their income. This state of affairs is unacceptable, because in this way you can find yourself behind the key industry players and lose your cut.

How No-Code can help

The loan business is very lucrative, but at the same time, it can be quite problematic if approached in the wrong way. The above problem areas often arise if you use custom development or legacy banking software, but no-code solutions help to avoid them.

No third-party devs involvement

No-coding or zero-coding is a lifesaver for non-programmers and entrepreneurs who need a quick launch. No-coders can be people without a technical background, but with an analytical mindset and product thinking. This means you won't have to hire extended LMS developers and spend time researching and onboarding new developers. Instead, you can find the right people on your team who can master the no-coding tools and save the company's budget and valuable time.

Easy Integration

New no-code lending platforms can have dozens or even hundreds of connectors to integrate disparate data and systems. They use web services and APIs to communicate seamlessly and efficiently. Full cross-platform integration facilitates dynamic data synchronization between user devices and internal databases.

Fewer people, fewer bugs

In addition, the fewer people involved, the lower the risks associated with human resources. You can configure a no-code Loan Management System without risks of breaking the whole of your product. Even if something goes wrong, there is no need to demolish and rebuild the entire "house", as it would be in the case of custom development, but simply replace one defective block with another.

Quick Product Launch

No-coding is the shortest path from an idea to its implementation. You can get faster time-to-market for your main product if you use the commodity solution for the Loan Management part. Compare custom development for LMS to development of project management software to track just your own inhouse projects.

Outcomes to Highlight

A lot can be said about how positive the impact of the introduction of no-coding software into financial institutions is. We will focus on three key aspects: predictability, cost-effective and cycle time reduction.


Investors are more willing to support startups that launch their projects on time and within the agreed budget. No-Code loan software provides a set of modules for various purposes. These can be tools for installment or BNPL projects, digital onboarding, KYC, credit scoring, loan origination and more. Since the solution consists of different ready-to-use modules, you pay only for the ones you use. Plus, you get a fixed price and delivery date in advance, which you can notify your investors about.


No-code solutions significantly reduce the cost of human resources. First, you don't need to hire a team of expensive developers, as you can build and deploy your own applications without writing a single line of code. Secondly, you can automate those loan processes that were previously done manually by staff. What is more, with the pay-as-you-go model, you only pay for the modules you use. No more no less.

Cycle Time Reduction

Why waste time on standard functionality and reinvent the wheel when everything is ready in the most innovative and best possible way? So, in the case of Plug and Play Finance (PnP) Finance, where a modularized solution is used, instead of the usual methods that are utilized in embedded financing, its implementation takes days or even hours, not months. It is much easier for businesses to use and integrate such a solution, and the results are almost the same as when developing complex and expensive software.

To Sum Up

Basically, there is one result: a powerful lending platform that meets the latest trends and your business goals; and two ways to achieve it: complex, expensive and time-consuming custom development or unique off-the-shelf software that is easily integrated and ready to make money in a matter of hours. The choice is obvious. But to be sure of this, try and test the solution in action.

Neofin Staff
Neofin Staff
October 29, 2022
Table of content