The financial services industry is undergoing a seismic shift—one that is redefining how banks, insurers, and fintechs operate, innovate, and engage with customers. This era, often called the "Great Refactoring," is characterized by the rapid modernization of legacy systems and the adoption of new digital enablers. At the heart of this transformation are two powerful forces: low code/no code platforms and open banking APIs. Together, they are empowering financial institutions to accelerate product development, reduce costs, and foster a culture of business-user innovation—while navigating the persistent challenges of legacy complexity, talent shortages, and regulatory uncertainty.
Several converging trends are propelling the Great Refactoring:
These forces are compelling financial institutions to rethink their technology stacks, business models, and engagement strategies to remain competitive and relevant.
Low code/no code platforms are transforming how financial institutions build and deploy digital solutions. By enabling rapid application development with minimal coding, these platforms allow banks and insurers to:
For organizations burdened by decades-old core systems, low code/no code offers a pragmatic, incremental path to modernization. New digital capabilities can be layered atop existing infrastructure, minimizing disruption while delivering immediate business value.
Open banking is another cornerstone of the Great Refactoring. By enabling secure data sharing through standardized APIs, open banking fosters a more collaborative and competitive financial ecosystem. The implications are profound:
However, open banking also introduces new challenges around data security, privacy, and compliance. Robust governance frameworks and cybersecurity measures are essential to building and maintaining customer trust.
Legacy systems remain one of the biggest barriers to innovation in financial services. Outdated architectures slow product launches, increase operational risk, and complicate compliance. Modernization efforts—whether through cloud migration, API integration, or low code/no code adoption—require careful planning and phased execution to minimize disruption.
Talent is another critical factor. The shift to digital-first models demands new skills and ways of working. Upskilling, cross-functional collaboration, and a culture of continuous learning are essential to harnessing the full potential of new technologies. Empowering business users through low code/no code platforms helps bridge the talent gap, enabling faster innovation and reducing bottlenecks.
As open banking and data privacy regulations evolve, financial institutions must remain agile and proactive in compliance. Regulatory expectations now extend beyond traditional risk management to include data privacy, AI transparency, and operational resilience. Building compliance into digital architectures from the ground up—and leveraging technology to automate monitoring and reporting—are becoming competitive differentiators.
Despite the challenges, the rewards for those who embrace the Great Refactoring are significant:
Case studies across the industry demonstrate the impact: banks reducing account opening times from weeks to hours, insurers launching new products for underserved demographics, and asset managers scaling digital platforms globally—all while improving compliance, reducing costs, and enhancing customer satisfaction.
The Great Refactoring is not a one-time event, but an ongoing journey. For banks, insurers, and fintechs, the imperative is clear: embrace digital transformation, modernize legacy systems, and put the customer at the center of every decision. By leveraging low code/no code platforms, adopting open banking, and continuously evolving to meet customer expectations, financial institutions can thrive in the new digital era.
At Publicis Sapient, we stand at the forefront of this transformation—helping financial leaders navigate complexity, unlock value, and build the future of financial services. The time to act is now. The opportunity is limitless for those ready to lead the charge.