Modern early warning systems need to be configurable, parameterizable and flexible to adapt to new indicators and data flows
FinTech BizNews Service
Mumbai, December 26, 2023: Acies is a leading multi-national firm in the technology and advisory space. It strives to provide practical and tangible outcomes rooted in the use of new generation technologies and applications. Its business verticals are focused on innovation, speedy implementation, skilling and scaling organizations to help achieve growth and sustainability. Acies focuses on providing advisory and implementation services, technology applications and platforms, content and learning and development solutions, and strategic investments. Ithas a focus of proving their services to financial institutions like banks. Acies' vision is to provide practical and tangible outcomes to support institutions and industries through businesses rooted in using next-generation technologies and tools to innovate, implement, skill and scale businesses to support growth and sustainability.
Muzammil Patel, CEO, Acies, is responsible for driving Acies’ strategy for the firm and its businesses and working with the Acies global and regional leaders to enhance the Acies global footprint. Over his career, Muzammil has worked with regulators and industry bodies as an advisor to help formulate the supervisory framework for high-priority areas in the risk management space, such as liquidity risk, intraday liquidity and commodity price risk management. Muzammil shares with the FinTech BizNews website his interesting insights on the advantages the no-code solution offers in terms of reducing the risk associated with potential NPAs. In an exclusive conversation, Muzammil talks about the attractiveness of no-code platforms for enterprises.
How does the No-code solution enhance or supplement existing early warning systems used by banks and NBFCs to identify NPAs?
Modern early warning systems need to be configurable, parameterizable and flexible to adapt to new indicators and data flows. More importantly, there is a pressing need to go beyond traditional credit risk indicators and integrate with multiple internal and external systems on a near-real time basis. The need to build in near real-time flexibility to change and integrate data flows and metrics makes it almost essential for early warning systems to be built on no-code platforms. Traditional early warning systems are likely to be replaced by those built on no-code platforms in the near future.
No-code platforms help provide seamless data integration through APIs and live data streaming. They also help build and deploy both deterministic and predictive models in hours. They help in near real-time visualization and information disbursement to key stakeholders and decision makers to effect portfolio rebalancing decisions. In a volatile world where businesses need to keep looking over their shoulders, early warning systems built on no-code platforms help them look ahead.
What advantages does no-code offers in terms of reducing the risk associated with potential NPAs compared to conventional systems?
Conventional early warning systems are hard-coded and have a high latency both in terms of data aggregation and compute. Conventional early warning systems are also heavily focused on internal data and their ability to translate both internal and external data into predictive input for decisions is relatively weak. In general, conventional early warning systems are more akin to scorecards reviewed at pre-determined intervals.
No-code platforms allow for risk indicators to be parameterizable and aggregate data across both internal and external sources in near real-time. They enable, with the help of deterministic, stochastic and machine learning models, near real-time prediction, visualization and distribution of intelligence that helps in re-balancing underwriting decisions, initiating early recovery and resolution, and portfolio down-selling.
How have you observed the adoption and growth of no-code platforms within the enterprise space, particularly in recent years?
No-code platforms have started touching every element of the enterprise software space. With the flexibility they provide, they are replacing traditional vendor systems in the areas of customer onboarding, employee engagement, approval management, process digitization, risk management, analytics and data management. Most modern vendor systems are being built almost exclusively on no-code platforms.
There is still a long way to go, though, for no-code platforms since the words no-code and low-code are used loosely as a marketing gimmick rather than a capability statement. Setting standards on what constitutes a full service no-code platform is important for the industry to explain to the consumers what no-code really is and build confidence in end users. In the next 3-4 years, as standards are established in the no-code platform space and new use cases come to the fore, no-code platforms are expected to become the default method of undertaking software development.
What factors contribute to the attractiveness of no-code platforms for enterprises looking to streamline their operations or develop new solutions?
The cost of development on no-code platforms is typically 25% of traditional software development and the total cost of ownership of no-code platforms is approximately 20% of the total cost of ownership of traditional software procurement. Applications can be built and deployed on no-code platforms in weeks as opposed to what would traditionally take months. No-code platforms are becoming increasingly simplified and provide assisted interfaces which reduces the dependence on business analysts in the development process. In general, as the trend continues, the end users with actual domain experience are likely to become citizen developers i.e. effectively anyone could become a software developer. No-code platforms reduce the dependence on technical personnel to the bare minimum and allow for anyone with a vision and a thought process to build enterprise grade software.
In what ways do no-code platforms cater specifically to the unique needs or challenges faced by the banking and financial sector?
The banking and financial services need to keep up with constantly changing regulatory requirements for automation. More importantly, as FinTechs pressure and disrupt traditional models, the financial services sector needs to dramatically reduce the cost of operations and technology. While keeping traditional flow business intact, the Financial Services sector is required to build a digital first model in parallel. No-code platforms are key in the transition to a digital first model for the financial services sector. They are also key to managing evolving and rapidly changing regulatory requirements.
What advantages do no-code platforms offer to startups in terms of accelerating their product development and market entry?
No-code platforms reduce the dependence on technical co-founders for startups. They shift the focus from technology searching for problems to solve to known problems being solved by innovative business models not handicapped by technology constraints or large investments. No-code platforms reduce the technical and capital debt for startups and new-age entrepreneurs. With no-code platforms, entrepreneurs can innovate rapidly, incorporate customer feedback at minimal incremental cost and iterate through product versions rapidly without incurring capital debt by diluting significant stake.
