There are a lot of new terms floating around in the world of FinTech and embedded finance, not least no-code and low-code, as more businesses start to move away from the traditional fully coded route to offering bespoke financial services.
The truth is that it’s not as complicated as you might think. Yes, code may seem baffling if you’re not a developer, but for businesses that want the benefits code has to offer without the hassle of dealing with the technicalities, low-code and no-code fill the demand for a convenient solution.
This article demystifies low-code vs no-code, everything you need to know about the similarities and differences, and which approach you should opt for to create new revenue streams and better serve your customers.
What is the traditional code route to embedded finance?
To understand no-code and low-code, it’s helpful to first look at how things used to be done – the old school, fully coded method of developing financial services.
In this scenario, businesses needed to connect a provider’s API to its own interface. This acted as a conduit between the different applications, enabling data to flow freely between them.
This may sound pretty complicated – and in short, that’s because it is.
For this process to work, every time a new software system is introduced, bespoke code must be written to enable it to communicate with the others.
This meant businesses would need to hire expensive developers with specialist coding skills to create everything from scratch. This was (and still is) a very time-consuming and costly process that often resulted in long delays to market.
It could also be quite inflexible, as any changes or updates that were required would need to be made by the developers and then tested and re-tested before being implemented. This often led to frustration on the part of both businesses and their customers, as new features would take weeks or even months to roll out.
Low-Code vs No-Code
Low-code and no-code are terms that are often used interchangeably because they have a lot of similarities.
One of the main commonalities between the two approaches is they don’t require bespoke coding skills to develop new applications or features.
That means no need for APIs, no SDKs, and no need to connect different software systems together.
Instead, they provide a visual interface that enables businesses to drag and drop different functionalities into place without the need for any complex coding.
But there are nuances between the two that you should be aware of.
The main difference between the two is that low-code platforms still require some level of coding knowledge, whereas, with no-code platforms, businesses can forgo dealing with code altogether.
However, to really understand how they’re different, it’s important to fully understand each approach.
What is Low-Code?
Low-code platforms are a type of no-code platform that allows businesses to develop applications without the need for coding skills. They provide a visual drag-and-drop interface that makes it easy to create, test and deploy applications with minimal effort.
This makes low-code platforms ideal for businesses that want to develop simple applications quickly and without the need for coding skills. However, they do have some limitations in terms of flexibility and functionality.
What is No-Code?
Meanwhile, no-code platforms take things one step further by providing a range of pre-built components that can be used to create customised applications without any coding required.
As a result, no-code platforms are the perfect solution for businesses that want to develop complex applications quickly and without the need for coding skills. They offer more flexibility and functionality than low-code platforms, making them ideal for businesses that want to create bespoke solutions.
So, which platform should you choose?
If you’re looking to offer a range of simple financial products quickly and without the need for coding skills, the low-code route is the way to go. However, if you want the same convenience combined with more flexibility and functionality, no-code is the way to go.
Orenda Finance offers a no-code low-code platform that provides businesses with everything they need to create customised financial solutions quickly and easily, all with a single contract.
So, if you’re looking for a no-code low-code solution that offers the perfect balance of convenience and flexibility, we’ve got you covered.
To find out more about low-code vs no-code or what we can help you to achieve, get in touch today.