Steps Banks are taking towards Digital Transformation Journey

Image of Yethi blog content

The digital transformation journey is gaining momentum in the banking and financial industry. But when did the journey first start? As per a Gartner report, 69% of organizations believe that the Covid-19 global pandemic has accelerated the digital initiatives, 60% have increased the focus on improving the operational excellence through digital businesses, 50% have increased the focus to drive higher levels of cost optimization through digital initiatives, and 48% are investing on digital initiatives. Covid-19 may not be the sole reason for the growing digital business, but it has sparked the growth.

Banks are adopting new technologies on their digital transformation journey. They are taking every step to digitize the services and move processes online. Banks are also accommodating backend changes which is an essential step towards digitalization and supports the transformation. Any digital move is incomplete without ensuring security against scams and fraud risks. Banks initiate many digital moves but eventually strive to succeed or manage the pace. It is because they lack support or skill in many aspects, which are essential to compete with digital-native solutions. Digital transformation does not end with the integration of digital systems. It is a move that includes meticulous attention to ensuring user experience, security and performance of applications, monitoring infrastructure and more.

In this article, we will explore the objectives and goals banks and financial institutions are setting up for themselves and the steps they are taking toward the digital transformation journey.

Goals and objectives for digital transformation journey in banks and financial institutions

The digital transformation journey of banks and financial institutions did not start overnight. There was a pre-conceived idea behind such a revolution. Banks and financial institutions envisioned their goals and objectives before their journey. Let’s explore them one by one.

  1. Improving customer experiences

Customer requirements have changed with the passing years. Today, customer demands quick and easy solutions. They require digital solutions (mobile devices & digital apps) integrated with new technologies, improved use of data and analytics and more. It enables the customers to get the exact services quickly whenever they want them.

Consumer behavior has changed the way banks look and offer services to their customers. Banks and financial institutions are customizing digital solutions to create digital engagement for customers of different segments, based on the factors such as age, preference, location and more. Consumers have moved to digital platforms from the traditional model of banking services, which facilitates digital transformation.

Consumer’s changing needs are compelling banks to re-evaluate the services and future scope of the branch network. Banks are increasing their digital footprint by moving the branch footprint to a digital platform. They are aligning the services to meet consumer behavior and building new omnichannel sales and service models. Based on consumer trends, they are enhancing cross-channel marketing communications.

  • Improving time and team efficiency

As the digital footprint is increasing, branches have lesser footfall. The banks are offering their services on the digital platform. Even the critical transactions are done using digital platforms. Organizations like banks and financial institutions are investing in the digital transformation journey and improving time and team efficiency. The investment includes expanding the talent base using training and cross-functional deployment to ensure that organization can save a significant amount of time from project initiation to completion.

Domain & application knowledge is critical to facilitating the digital transformation journey of an organization. Many organizations, so far, have been using legacy systems. Handling and managing the system workflow requires hard skills & knowledge. As the process changes by adapting to digitalization, organizations are putting more time and effort into building strong management and highly experienced project teams. Organizations are moving beyond the traditional outlook of using legacy systems. They are adopting digital frameworks to ensure using technologies to their maximum benefit.

Organizations are currently focusing on process and coverage repository. After undermining investment in tools and training for so long, organizations realize the importance of investing in tools and training. They are investing in training employees to be more skilled to keep up the pace of digital transformation. Organizations need the most effective solutions to help them with the quality product launch and faster time to market. 

  • Using modern technologies for maximum advantage

The digital transformation journey is incomplete without development in technologies. Organizations are harnessing the unconstrained potential of technologies and digital solutions. But it is not just about digital solutions; digital transformation involves other aspects of the organizations too.

Modern digital technologies are crucial to transforming the process of organizations. We need a solid technical team to unleash the potential of digital solutions. The entire digital transformation process includes outstanding digital solutions and a competent workforce to handle them. Thus, technology and people work together to transform the organization digitally.

The organizations aim to reduce the time to market quality products, change the approach of the operation, and deliver value to customers. The organizations are deploying new technologies in all their business areas. Banks are among the pureplay in embracing new technologies. Since increasing competition threatens the stability of the banks continuously, they cannot help but emerge much stronger digitally with time. From customer onboarding through video KYC to 30-minute paperless loan approval and virtual customer assistance, banks and financial institutions are leveraging digital technology to their maximum benefit.

  • Promoting Innovation

Innovation is the key to the digital transformation journey. Organizations have come to terms that to move ahead with the digital transformation journey, they must innovate. As digital transformation and innovation are interconnected, innovation drives digital transformation. Hence, in the digital transformation journey organization must be open to an innovation culture.

Let’s consider the Pandemic scenario. As per a report, 70% of complex and large-scale organizations failed to reach their digital transformation goals. Organizations now have an understanding that it is critical to embrace innovation in the digital transformation journey. Thus, banks are changing their ecosystems by promoting innovation to drive a successful digital transformation journey.

Banks and financial institutions are changing the work culture and ecosystem, encouraging employees and consumers to try new technologies and innovations. The changing customer requirement plays a massive role in strategizing the digital transformation goals for the organizations. Technology empowers people and processes to add value to the customer experience. Hence, enterprise solutions are more innovative at the current time with the latest technologies to ensure an outstanding customer experience.

  • Updating process and systems

There are many organizations which still use legacy systems. Organizations spend 75% of their IT budget on supporting legacy systems. There is only 25% of the IT budget is allocated to digitalization. One of its many goals and objectives for the digital transformation journey in banks and financial institutions is to shift the budget allocation to digitalization.

Banks and financial institutions are building strategies for digital transformation. Many banks are digitally transforming the front-end and back-end processes completely. The banks and credit unions are rapidly adopting digital solutions to keep up with the pace of marketplace changes, and many firms are moving to cloud computing and adopting agile principles. It helps processes with enormous amounts of data and insights in real-time and reduces costs.

However, some banks and financial institutions store a massive amount of data on their old legacy systems. The modernization of these legacy systems would either take longer than the anticipated time or would be impossible to migrate. Many enterprises have found solutions to this issue. They have digitalized their entire front-end process while operating a few back-end processes through their legacy systems. 

As a part of their digitalization goals and objectives, organizations are integrating various technologies like Cloud computing, mobile technologies, advanced analytics, cybersecurity, etc. The strategy has enabled financial institutions to offer superior digital experiences to their customers. The digital transformation journey is more of an inside-out approach that focuses on speed, ease of use, and user experience.

  • Preparing the team for the digital transformation journey

The bank’s digital transformation journey is more than using the most updated technology or digital applications. It is about how prepared you are to adapt to the changes. The banks and financial institutions’ goals and objectives are to prepare the team for the digital transformation journey.

Hence, organizations must focus on informing the team about the positive impact of adopting digital technology. The banking and financial ecosystem is changing, and technology plays a significant role in offering value proposition, greater efficiency, and higher profitability.

Steps banks are taking toward digital transformation journey

Being an integral part of banks’ transformational journey, we have seen a few steps that banks are taking towards digitalization. Below are a few instances.

  1. Banks have been undergoing massive digital transformation in the last couple of decades. They are transforming the entire banking workflow and moving the current manual processes into the digital mainstream across all banking verticals and multiple business portals. By now, banks have digitally transformed 40% of their banking workflow, but 60% of the workflow is still manually done. Since the effect of the Covid-19 global pandemic, banks can no longer delay their digital transformation journey. Hence, they are speedily adapting to the changes around them.
  2. Trade Finance has been essentially a back-office platform. However, due to Covid-19, many organizations decided to digitalize their back-office processes. Banks realized the necessity of streamlining the process to seamlessly work with front-office, mid-office, and back-office workflow transformation.
  3. Banks are moving all credit lending from non-system to digitalized workflow systems. Banks have introduced digital platforms to handle the end-to-end lending process, from loan onboarding and video KYC verification to the collection process.
  4. The banking industry is moving to the web, online applications, and mobile applications from branches. Mobile applications are improving the speed, making the process simple and enhancing user experience with continuous service.
  5. Banks are integrating the latest technologies like automation and AI with their online services. Many banks and Credit Unions are integrating these technologies into their service line and functions as robotics and AI technology improve the online services. It allows banks to save money, improve the solutions, and delegate their people to other important assignments.

Conclusion

Typically, a bank’s transformational journey is two ways. The broader categories are application upgrades and new implementation. As we were a part of a transformational journey for multiple banks and financial institutions nationally and internationally, we have executed end-to-end testing and supported the banks in their transformational projects helping them to go-live within strict project deadlines.

We follow a managed testing framework for the transformational projects of banks and FIs. From gathering functional and non-functional requirements, designing, and rescheduling projects, to managing code installations, release notes, and test data. Our process flow includes strategizing, planning, preparation, and execution. We define metrics based on defects management, test effectiveness, test efficiency, and test coverage. We also track defects, test efforts, status, schedule, risks, and issues.  

Our end-to-end testing services include requirements assurance, integration assurance (application suite & system landscape), functional assurance (pre-migration & post-migration), non-functional assurance (performance testing, security, and usability), and test automation, pre-launch testing, regression testing, and testing CoE.

Digital payment in the banking ecosystem and managing fraud risk

yethi blog image

Countries believe there is unfathomable growth of digital payment in the banking  ecosystems. In fact, many countries are including the plan to boost the digital payment ecosystem in their budget report. India, for example, has a plan to offer financial support for the digital payment ecosystem, which is included in the Union Budget 2022-2023. As per a report in Statista, “total transaction value in the Digital Payments segment is projected to reach US$8.50tn in 2022.” The report further highlights that “total transaction value is expected to show an annual growth rate (CAGR 2022-2026) of 13.10% resulting in a projected total amount of US$13.91tn by 2026.”

Let us discuss some of the distinct global digital payment features. Digital payment allows instant money transfer between wallets and different bank accounts in seconds. It helps in easy bill payments, both prepaid and post-paid. Users can also manage physical and virtual card operations without any issues. Digital payment services help in easy merchant payments using contactless technologies like (NFC codes and QR code scanners). Digital payment platform uses multiple technologies like tokenization, passwords, biometrics, security questions, point-to-point encryption, out-of-band authentication, and one-time password (OTP) via SMS to protect digital transactions. A lot is happening in the digital payment platform, which requires strict attention to follow the security guidelines.

Background of digital payment

Organizations have seen the challenges associated with maintaining the platform security for the digital payment platform. The scope of digital payment is not the same as it was in the mid-1990s when Stanford Federal Credit Union offered the first online payment systems to clients as a first organization. Today, digital payment systems provide services in various fields. From money transfer to bill payment and loan origination, the digital payment platform handles multiple services.

Millicent and Ecash were the first companies to launch digital payment in 1995 and 1996, respectively. They specialize in digital cash, e-money, and tokens modes of digital payments. The emergence of PayPal in 1998 changed the digital payment trend completely.

Digital payment in the banking ecosystem

The massive technological development in today’s era has led to the growth in online shopping, banking, and other services. The digital payment structure has seen significant expansion in the past few years, and it is further accelerated with mobile devices. As per a report in Statista, 950 million users carried out mobile payment transactions globally in 2019. And the projection says there will be a whopping growth of 1.31 billion users by 2023. Amidst all these growth and developments, the organizations have much to worry about the platform security, performance, functionality, accessibility, and usability. Organizations must establish a strong foundation and control over the digital payment platform if they have to manage the unrelenting growth of digital payment.

To initiate and encourage the growth of digital payment, banks are embedding futuristic technologies like AI, Machine Learning, IoT, and Robotics with their products and solutions. Digital and contactless payment have increased in the recent past. Not just in the major cities, the smaller cities are also adopting contactless payments. Users can carry out transactions by simply scanning the QR codes or in a single swipe.

Banks are collaborating with multiple digital payment platforms and third-party platforms to extend their services beyond the conventional banking systems. The tap-and-go payment options have enabled many vendors and retailers to embed the advanced technology into wearable devices that allow consumers to purchase products and services using smartwatches, smart rings, and wristbands. The only concern is how secure these devices are. To put all speculations to rest, retailers and vendors are doing enough to ensure the platform’s security by eliminating anomalies and errors from the payment platforms.

There is an increase in e-commerce transactions. Restrictions on movement during the Covid-19 lockdown could be one of the reasons but are not the only one. Banks have made their services available to the customers on digital platforms before Covid-19. But we cannot take away the fact Covid-19 has fast-tracked the process, and whatever was brewing beneath the surface has emerged strongly. Digitalization has changed the payment structure. E-commerce sites today have access to the user’s bank accounts. Banks are also collaborating with e-commerce sites to provide exclusive offers to consumers. The process has influenced people to rely on e-commerce to purchase groceries, health products and other essentials. The offers from banks and the benefits and advantages of these transactions have surpassed conventional buying and selling behavior. Hence consumers prefer to shop online and access remote commerce and digital payments.

Customers have payment flexibility using QR codes. It is easy to implement and use. The banks have integrated the services and made them available to their customers. QR codes carry transaction processes without any hassles saving significant time. Investment banks are adopting cryptocurrency to help people inspire to invest in digital gold. The financial market has seen a prominent surge in crypto investment, and it is evident that cryptocurrency is here to stay.

Fraud risk in digital payment

The growth of digital payment attracts multiple fraud risks as hackers are trying to gain access to customers’ personal and banking details. Following are the types of fraud risks that banks and customers are facing on a regular basis.

  1. Phishing – The scammers create identical bank website and send the links to the customers. The fake websites are used to capture user ID and passwords, Card numbers, ATM PIN, CVV, and OTP and misuse them.
  2. Vishing – It is a simple method where scammers use Voice over Internet Protocol (VoIP) technology to contact customers and seek personal and financial details over the phone.
  3. Smishing – Using this method scammers send text messages to the customers with links to call back, visit websites, download documents, and information about job offers, lottery wins, ATM deactivated and more.
  4. Identity Theft – Scammers use different methods to acquire customer personal information date of birth, passport number, Aadhaar details, PAN details and more to access customer bank accounts and carry out transactions.
  5. Sim Swap Fraud – The scammers obtain customers’ detail through phone calls, messages, and more and get a new Sim card issued in customers’ names to carry out illegal transactions.
  6. Social Engineering Fraud – The scammers update fake number that resembles bank toll-free number on various digital platforms or caller identification apps to deceive customers. 
  7. International Transfer Scams – The scammers create fake stories and trap customers to share their personal and bank details. They use this information to withdraw a large sum of amount from customers’ bank accounts.
  8. Money Mule – This method is used to entice customers with attractive commissions. Once customers share their bank account details and personal information, the amount which is already stolen from one account to transferred to the customers’ account.  
  9. Juice Jacking – The scammers install the malware in public charging ports. If the customers do not have their own charging device and they happen to charge their mobile devices in any of the public charging ports, scammers can get easy access to the customers’ details stored in the mobile phones.
  10. Cerberus Trojan Threat – It is malware that steals customers’ banking details like credit card numbers, CVV and more. Cerberus efficiently captures screenshots, and get easy access to SMS text, contact lists, account credentials, and more.
  11. Covid-19 Phishing Threat – Covid-19 has been used by many scammers as an opportunity to steal and manipulate customers’ personal data and financial details bank account and debit/credit card details, CVV numbers and secret passwords to gain access to customers’ bank accounts.
  12. IDN Homograph Attack – The scammers can create and use a domain or website name that resembles an established name to trick the customers.
  13. Loan Fraud – The scammers trick the customers by publishing fake advertisements for quick and easy loans and offer them low-interest rates, easy repayment, or without any security needs.
  14. Online scams through the classified marketplace – The scammers create a fake profiles with fake social media addresses to contact customers who post their advertisements. They trick the customers to share their personal and financial details.
  15. Aadhar-based Payment System Fraud – The scammers can use the gums and glues to replicate customers’ fingerprints and use them to carry out transactions.
  16. Broadband Internet Security Fraud – The scammers may call customers to pretend that they are calling from telecommunication or internet services companies and ask for customers’ banking and personal details.
  17. SMS Spoofing – The scammers may call or text customers informing them about the KYC process being incomplete, debit and credit card being blocked or expired, SIM cards expired, accounts credited with a significant and more.

Managing fraud risk

The digital payment platforms need a high fraud detection mechanism. It is critical to have security measures, but it is also crucial to ensure the platform is functioning without any errors. Digital payment platforms must adopt a few security measures to establish a secure connection in a high-speed transaction process. Every secure website must have SSL certificates as it creates a foundation of trust. HTTPS is safe compared to HTTP as it avoids redirection links. It requires a digital certificate to establish the website as safe and secured, and HTTPS websites have security certificates.

The digital era is all about real-time payments, and the digital payment platform is driven by technology. Considering the amount of fraud in digital payment, fraud checks, authentication, authorizations, and data analysis must happen simultaneously. Banks are improving the API ecosystems to integrate their services into the third-party platform and make them available to the customers. As in the real-time payment, the sender and the receiver send and receive the amount at the same time; it is crucial to have the notification and alert of all transactions in place to limit the chances of data manipulations.

The digital payment platform is customer-centric; hence it must be customer friendly. Customers would not want to be pinned by unnecessary compliance requirements. But digital payment platforms cannot be open to cyber threats. Hence, the platform must follow the necessary security guidelines without overdoing them. In today’s world, digital payment platform follows blockchain technologies and are visible to the customer. This technology helps in detecting illegal transactions and malicious user behavior. Organizations are investing in technologies to tighten security knots and prevent monetary losses. Companies would not compromise on external and internal security.

As important as it is to maintain the security of the digital payment platform, it is also critical to test the platform end-to-end for seamless functionalities and error-free performance. Without an adequate testing solution, the platform would miss out on important alerts.

Conclusion

It is crucial to create a tenable cybersecurity framework and it is also important to ensure the integration, performance, accessibility, and usability of this framework. Organizations must adapt to digital channels and platforms to retain their customers. Digitalization is making it easier for organizations to acquire customers and serve them digitally. Accessing funds and payments is becoming more convenient.

The organizations need support to promote and build products with the right features and capabilities. The banks see growth in their ROI when the people use these digital platforms. Organizations would witness a significant cost reduction in delivery when people use the platform for many years. Digital payment testing is a method to validate the platforms’ sustainability and tenacity for long years.

User experience is the most vital point as the users’ attention span is less, and any unsatisfactory designs would bring down their interest leading to the lowering of companies’ investments. The usability and accessibility of the digital platforms are the parts that the organizations must focus on. Testing the platform ensures customer experience with the UI design, platform usability, and accessibility. We have seen clients coming back with requests to understand if their application performances are consistent across multiple devices and operating systems. As banks are slowly moving to multi-channel from mono-channel, which means that banks are interacting with their customers and offering services on multiple channels. Hence, integration, performance, functionality, and security are the most essential areas that require adequate validation.

There is a significant growth in API channels as in Yethi, we have witnessed several instances where banks had requested upward of a thousand APIs to their partner networks. Our partners have contacted us to build an infrastructure that could validate the APIs. The CIOs may face challenges if somebody releases a patch set in a multiple-interconnected network, which could lead to disruption of ongoing processes. The banks need to ensure their reputation as any of these instances could cause heavy damage to their business flow.

Transaction Banking Evolution and Testing

Yethi blog image

Transaction banking plays a significant role in the functioning of corporate and banking institutions to allow a smooth and safe flow of cross-border transactions, trade financial deals, mitigation of risks, cash flow management services, and security services. Transaction banking improves the relationship between banks, customers, and partners. It offers treasury solutions allowing a safer, secured, and effective flow of cash and financial securities across the international financial systems. It facilitates trade finance and offers cash flow management and securities for public and private entities.

The services of transaction banking are cash management services, online services, trade finance, and security services. Cash management service is a part of transaction banking that entities offer as a solution to manage the cash inflow and outflow effectively. Through online services, transaction banking provides a single point of cash access, trade, and security services to help streamline the workflow process for corporate, institutions, and small-medium enterprises. Transaction banking services for trade finance offer a range of global trade finance deals, including import and export services, buyer and seller financing, and open account receivable management. Through security services, transaction banking aims to improve the services and relationships between banks, clients, and partners.

In this article, we will explore why there is a surge of technology and innovation in transaction banking. We will track the evolution of transaction banking and highlight the business and regulatory issues. We will also investigate the scope of testing the transaction modules in banks and examine the products that are covered in testing the transaction modules and platforms.

Technology and Innovation in Transaction Banking

There is stiff competition in transaction banking that arises with changes in the regulatory compliances. With changes in regulatory requirements, banks and vendors are making considerable investments to remain competitive and ensure the quality of transaction banking platforms.

The banks no longer build their proprietary solutions. Instead, they rely on technology vendors to deliver corporate solutions. It significantly reduces costs and frees the internal resources to focus on more value-added services. Banks are investing to make the data easily available to companies and help them achieve straight-through reconciliation. Banks are focusing on collaborating with external vendors for payments. Mobile payment systems are emerging which is evident from different mobile payment platforms collaborating with Google, MasterCard, and Sprint.

Transaction banking is changing the relationship between banks and their technology vendors. Banks are improving their collaboration with the technology vendors to ensure that they offer quality banking services to the customers. Banks are utilizing the technology to the fullest to make their services flexible. With the inclusion of mobile technologies and Cloud services, banks are evolving and improving their services; banking services without these recent technologies now seem incomplete.

Evolution in Transaction Banking

Banks have reorganized their internal operation to improve different transaction banking units. The current structure unifies cash management and trade finance activities. The evolution of transaction banking has had a significant impact on the banks’ service lines. The quality of products and services like trade finance, payments, supply chain, cash management, liquidity management and more are now improved with the technology used for transaction banking.

Large corporations are using the effect of globalization on the economy to manage their cash and liquidity. They have standardized their finance processes by creating regional shared service centres and executing centralized back-office systems across regions. The earlier payment factories that used to process payments have now evolved into extensive corporate transaction banking systems utilized to manage the transaction flow between the partners, banks, and clients. Technology has helped corporates to manage and use their internal cash flow more efficiently. They have improved the visibility of cash transactions. But one area that can be challenging for treasury is to gain access of the cash once it is identified.

The situation can be grave in the countries where there are some rules imposed on tax. It prevents the easy movement of liquidity outside of the country. To facilitate this movement there are many large cash management banks present across countries that advise their clients and leverage the network to offer them value-added services. It offers greater visibility to the corporate treasurer over their cash status. They can manage the cash movement and access the cash without being worried about adverse situations. The organizations can reduce the need for short-term borrowings by up to 30-40%.

Working capital is extremely important for organizations since the liquidity risks can turn an organization into bankruptcy and counterparty risk is rising high. It is not just enough to have funds for a corporate they must manage the funds to make it more accessible and visible.

Liquidity Risk & Counterparty Risk

Liquidity risk and counterparty risk are the two common types of risk that transaction banking face. When an individual investor, business, or financial institution cannot meet their short-term debt, it raises the concern of liquidity risk. On the other hand, counterparty risk arises when the second party in credit, trading & transaction, and investment cannot fulfil their role in the deal and becomes a defaulter in a contract. An effective liquidity risk management and counterparty risk management program help banks meet their obligations to pay within due dates to avoid adverse scenarios.

The Scope of Testing Transaction Banking

The scope of testing transaction banking is spread across the area of its services. The service line of transaction banking is the flow of cross-border transactions, trade financial deals, mitigation of risks, cash flow management services, and security services. The scope of testing transaction banking includes testing the cash management, payment transactions, supply chain finance, collection and receivables, trade finance, and back and front office transaction banking modules.

Transaction banking is available through multiple sources and channels. Testing transaction banking includes testing the transaction origination medium like bank branches (back office and front office systems) and channels (internet and mobile).

Yethi’s Testing Approach and Methodologies

At Yethi, we have worked with some of the major national and international banks. We have tested prominent transaction banking applications. From User Acceptance test design & execution to regression testing and performance testing, we have conducted end-to-end testing of different transaction modules. We have also executed security testing of all the transaction banking applications.

We have tested the following modules,

  1. Payments
    1. NEFT/ RTGS/IMPS
    1. Bulk Transfers
    1. A2A Transactions
    1. UPI/NACH-based transactions
    1. Instrument Series
    1. Tax Payments
    1. ECS
    1. Products Maintenance
  2. Supply chain Finance
    1. Vendor Finance
    1. Dealer Finance
    1. Payable Finance
    1. Receivable Finance
    1. PO Finance
    1. Reverse Factoring
    1. Export Factoring
  3. Collection and Receivables
    1. Collections
    1. EOD BOD Reports
    1. Receivables
    1. All other Reports
  4. Trade Finance
    1. Bill Collection,
    1. Letters of Credit,
    1. Bank Guarantee
    1. Open Account for Trade,
    1. C2C Transactions for Trade
    1. B2C transactions for Trade

We follow strategic testing methodologies and execute testing in phases across different modules like Payments, Supply Chain Finance, Collections and Receivables, and Trade Finance. Our testing method includes identifying various business processes in the bank and customizing software based on the volume and value of transactions supported by each process.

Our testing focuses on the processes deemed to be at high risk, based on an algorithm built in conjunction with the bank. We design and execute test cases based on our analysis. We offer end-to-end and improved test coverage across all the modules and products in transaction banking. We help banks in identifying the defects at the early stage, thereby minimizing the defect leakage risk. We detect rare issues and errors and increase the overall productivity of the application.

Mambu – A comparative study with other prominent CBS platforms

There has been a progressive shift from Banks and FIs towards more nimble and agile digital platforms, this facilitates them being more effective and efficient in the ways to serve their customer whilst allowing them to be more flexible in rolling out new products and services.

Mambu focuses on offering Banks and FIs a seamless online banking experience. Mambu is a SaaS-based Core Banking Platform that puts digital customer experience at the core of its banking and lending solutions.

Being born in the Cloud “Mambu” is created to empower the banking and financial industry with digital-first technology making the platform easily implementable. It started its journey by offering services to microfinance institutions and fintech start-ups. Mambu was founded in 2011, and today, 478 organizations in 51 global countries have adopted Mambu as their Core Banking Solution.  The latest offering includes corporate lending and payment services as well.

In this article, we will compare Mambu with other prominent CBS platforms.

Mambu vs Temenos Transact

Temenos being rich in its offering of system functionality and built with relevant technology offers a diverse range of integrations with ancillary systems. The platform is built for retail, corporate, and private banks to manage transactions, risk, enterprise credit, and more. It caters to the customer profiles like retail, corporate, universal, private, Islamic, and microfinance & community banks. Temenos solutions include Temenos Infinity – Digital Front Office, Temenos T24 Transact – Core Banking, Temenos Payments, Temenos Infinity Wealth, and Temenos Fund Management.

In comparison, Mambu is fairly a new core banking solution. Nevertheless, is growing fast to be a preferred partner for Banks on the lookout for their Core banking transformation. Mambu association with top-notch organizations to help them design, launch and scale digital-first banking and lending services. It is a platform built from the Cloud upward and is proving to be a cost-efficient alternative to expensive and complex conventional core banking solutions.

Being on the Cloud is one of the benefits among all others. Mambu also provides tools to its customers to build, integrate, and launch all lending portfolios. Its customer profile includes p2p, marketplace personnel, SME lenders, deposit-taking institutions, and mobile banking providers. The Mambu solutions are Composable banking, Cloud banking platform, and Mambu Process Orchestrator.

Mambu vs FLEXCUBE

FLEXCUBE has been a great option for the Banks and FI’s alike due to its association with CITI in the initial days and now after being owned by Oracle. It has front-to-back digital capabilities that help banks and financial institutions to innovate and create next-generation technologies for digital customer experiences. FLEXCUBE helps in generating improved insights and enhancing STP as it has access to advanced automation tools, which are supported by MI capabilities.

In contrast to Mambu’s customer profile, FLEXCUBE’s customer profile includes Universal, direct, private, and Islamic banks, and financial and lending institutions. Also, FLEXCUBE has been empowering the business of their customers with the solutions like Core banking software, Enterprise limits, Collateral Management, Investor Servicing, Financial Services Lending and Leasing.

Mambu vs TCS BaNCS

TCS BaNCS solutions focus on Digital First, Cloud First philosophy to support the fast-paced digital world. The TCS BaNCS product suite is developed to help financial services institutions become more agile, innovative, and intelligent by leveraging the cloud and digital ecosystems. Its Global Banking Platform offers business support with products and services across assets and liabilities, cash, securities, and crypto-assets. While Legacy systems struggle with the accelerating growth of digitalization. It empowers the overall ecosystem with a rich catalogue of APIs.

Mambu is used by the Credit Union and multi-branch set-up. It is used for online banking, retail banking, and private banking. Like Mambu, TCS BaNCS also supports multi-branch setups and Credit Union. In addition to online banking, retail banking, and private banking, TCS BaNCS can be used for Compliance Tracking, Corporate Banking, Credit Card Management, Investment Banking, Risk Management, Securities Management, and Transaction Monitoring. In the banking category, TCS BFSI platforms have 534 customers in 48 countries, while Mambu is implemented by 478 customers in 51 countries.

Mambu vs Finserv DNA

DNA® from Fiserv is a Core Banking Solution with an open architecture. It offers a wide range of customization and enhancement options through the DNAcreator® toolkit and AppMarketTM. DNA enables easy integration and customization; and as it is based on open architecture, it offers flexibility to add third-party or customize the platform to suit your requirements. DNA improves operational flexibility by enabling real-time data backup. It delivers real-time performance by executing and storing transactions as they occur.

Real-time data performance ensures the information is updated consistently to support rapid data analysis. DNA offers an enhanced user experience with intuitive and touch-enabled features. The improved user interface allows ease of use and improves efficiency for users across various devices and OSes. DNA is fully integrated with corporate banking solutions that empower all banking operations. In banking categories, Finserv DNA has 100 customers in 6 countries in contrast to 478 customers in 51 countries for Mambu.

Mambu’s SaaS model supports tier-one banks to fintech start-ups. It is developed from the cloud unlike other core banking solutions. DNA has a TransactionExpress feature that helps users with quick multiple transactions. It also allows multiple transactions to multiple accounts from a single screen. DNA teller capture option and allows users to image, process, balance and verify checks and other documents immediately — right at the teller line – to gain quick access to external funds without handling a transaction more than once. Mambu and Finserv both have component-based architecture, but as per a Gartner report compared to Finserv, Mambu has better interoperability and functional granularity.  

Mambu vs FIS Profile

FIS designs and implements a fully integrated core system with critical components to transform existing investment in the community, mid-tier, large and global financial institutions. It aims at meeting customer needs, regulatory changes, and competing with alternative providers. FIS is the main repository of data used for financial management and reporting functions. The functions of FIS are, to record financial transactions in GLs, generating financial reports to meet management & statutory requirements, and control overall spending through budgetary control embedded in the systems.

As per a Gartner Peer report, Mambu wins an edge over FIS in terms of interoperability and functional granularity. The report also reveals that Mambu has better experience compared to FIS while catering to Small, Midsize, and Large Bank Segments. Mambu can be easily integrated and deployed as compared to FIS. In terms of quality of end-user training and ease of integration using standard APIs and tools, Mambu is a clear winner.

Mambu vs SAP Transactional Banking

SAP Transactional Banking for SAP S/4HANA is an open core banking platform designed for retail and corporate banking and based on an architecture that ensures real-time processing and continuous availability. It provides a wide range of functions for retail and corporate banks of different sizes; and enables users to manage the contract-related master data, along with maintaining, controlling, and monitoring the use of collaterals.

It defines integration patterns for connecting to a payment transaction system, a collateral management system, or a sub-ledger system, archiving the relevant business objects, automating the manual processing tasks, and mapping the relationships between receivables, and collateral assets, collateral providers, and collateral assignees. Its features include exception handling, data protection, up and downstream integration, data lifecycle management, and archiving capability.

Mambu SaaS model supports both tier-one banks along with fintech start-ups. Being cloud up, unlike other core banking solutions.

Mambu vs Avaloq Banking Suite

Avaloq is a Swiss-based leader in core banking software and digital technology founded in 1985. They provide SaaS and business process as a service (BPaaS) solutions to banks and wealth managers. With a strength of over 150 clients with USD 4.5 trillion in assets managed with their flagship software product. Their default approach is cloud-native, offering flexible deployment options for core banking.  Their standalone digital products are also cloud-native and cloud-agnostic, enabling efficient operation on any private or public cloud.

Avaloq helps in wealth and investment management by offering specialized knowledge and software to clients. They leverage automation to manage, protect and grow wealth and help private banks by bringing flexibility to their offerings. Avaloq is designed for retail and commercial banks by operating a traditional branch network and boosting online services with a fully digital experience. It also offers tailored services for challengers & neo banks by speeding up business launches. It uses cloud-based solutions to scale up business processes faster.

As per Gartner Market reviews, Avaloq and Mambu both have 4.2 ratings. While Avaloq wins an edge over Mambu serving the Midsize Bank Segment, Mambu is ideal for Small Bank Segment. However, Mambu wins by .1 in interoperability and functional granularity. Mambu serves the Large Bank Segment, while Avaloq could not make it through. Avaloq has a better requirement understanding and pricing flexibility. But Mambu offers ease of deployment, quality end-user training, and ease of integration using standard APIs and tools. Mambu also has easy availability of 3rd party resources. Compared to Avaloq, Mambu offers quality technical support, while Avaloq has a quality peer user community.

Mambu vs Intellect Global Universal Banking

Intellect is a popular financial platform for Corporate Banking, Retail Banking, Brokerage Solution, Treasury Management, and Insurance Software. It helps banks and businesses to grow in their wealth. Intellect is designed for transaction banking and supports corporate banking & global payments to grow their business. Intellect is a highly rated practice management solution that can handle billing, scheduling, and multiple automated tasks.

Mambu, on the other hand, is the world’s only SaaS banking platform that helps banks evolve by offering future-ready technology. Mambu is designed for banking convenience by simplifying plugin integrations, streamlining, and automating customer journeys. With Mambu, there is no need for coding and customizing as it has an option to configure and integrate, and Mambu is good to be used. It is used on the cloud instead of on-prem deployments, which helps organizations to constantly improve instead of being stuck into a painful cycle of enduring major and disruptive releases. It is interesting to note that as per a report, Intellect is ranked 10th while Mambu is ranked 4th in Core Banking Software.

Mambu vs Finacle Core Banking Software

Finacle is a cloud-based banking solution that helps financial institutions to digitally enhance their core banking capabilities. Developed by Infosys, the platform is used by banks across 100+ countries and serves 1 billion end customers worldwide.

Finacle offers a comprehensive set of products that accelerates organizational growth with innovation. It has open APIs, embedded with customer insights, and a real-time processing engine making it an ideal choice for modern banking. Finacle is a highly modular solution designed to speed up the production of new products and accelerate digital adoption. It delivers faster, safer, and fully personalized core banking services.

When compared to Mambu, Finacle’s customer profile is spread across retail, corporate, universal, community, and Islamic banks; lending and payment providers, while Mambu has alternative lenders (p2p, marketplace personal and SME lenders), deposit-taking institutions, and mobile banking providers. Mambu solutions are composable banking, cloud banking platform, and Mambu process orchestrator. Finacle has corporate, retail, universal, community banking suites, payments connect, and a digital engagement hub.

Wrapping up – Mambu has come a long way standing its ground and competing with some of the top names in the Core Banking space, but its journey so far has been remarkable and something that needs to be noted. Mambu has been successful in finding its own place and supporting Banks and FIs on their digitization journey in such a short span of time.

To conclude, Mambu is successful in standing shoulder-to-shoulder with the established names in the BFSI domain.  

How 2020-2021 pandemic has shaped the test automation landscape?

yethi blog image

The world had come to an abrupt halt with the outbreak of the Covid-19 pandemic, but there was a sudden surge of innovation. Organizations in various sectors realized that to deal with the adversities of this crisis, they must innovate new ways to sustain their business. We adopted various digital platforms to interact and grow with the exchange of services and offerings. But ensuring the quality of these products, services and offerings remained a decisive point. 

We are all aware of the importance of testing. It is known to all that testing plays a vital role in ensuring system quality. Organizations are extremely vocal about the incompleteness of quality assurance without appropriate and adequate testing practices, structure, tools, and plans. Did the testing process come to an abrupt halt due to the outbreak of the Pandemic? No, it did not. In fact, organizations found different channels to facilitate the testing projects. As the old saying goes, “necessity is the mother of inventions”. 2020-2021 pandemic became a driving force to innovate for quality assurance.

Pandemic surely had some negative and positive impacts on digital transformation. But that did not refrain people from trying out new solutions and remedies to their problems. Let us look at some of the positive and negative impacts of digital transformation that organizations had to face during the global pandemic.

Positive impact of Covid-19 in digital transformation

There has been a tremendous change in the way people work, think, and act. They have learnt new techniques and how to put them to use. The digital transformation has made people adapt to the changes. They have learnt to think out of the box and try new technologies. Digital transformation has facilitated remote working, and employees know that they can still be productive and efficient even while working remotely. The new work structure is like, “give us the facilities and new technologies, and we will innovate from there”.

Negative impact of Covid-19 on digital transformation

What seemed like a positive development for some were unfavorable for others. Covid-19 came with certain restrictions on communication and physical interaction. Some of the organizations that followed an old school method could not evolve with the surrounding changes leading to the disintegration of their foundation. Many physical branches were closed down with the decrease in footfall, and their business moved to the virtual platform. It has become a strenuous task for the management team to bring their employees back to the office. Employees have learnt new ways of working it has become hard to drag their feet back to the office.

Testing before Pandemic

Software testing is an integral part of quality assurance, and organizations cannot put them on the back burner. Testing has come to the mainstream and is executed simultaneously with the development lifecycle. Organizations realized the importance of testing long before the outbreak of Covid-19 hence, continuous testing is included in CI/CD pipeline as an inseparable process. With the introduction of effective test automation tools, it has become easy and convenient to conduct and execute testing practices like regression, UI/UX functionality, integrationuser acceptance and more at a massive scale. But there are more test requirements, which need expert and skilled testers to execute them. It is one reason that even after innovating the most effective test automation tools, organizations still require manual testing. Hence, we have the best of both worlds and automation test practice is most efficiently supported by manual testing.

Testing before the pandemic was mostly conducted onsite, with a significant portion handled by the offshore team. The organization had the advantages of system architecture and an adequate bandwidth with an efficient technical team deployed onsite that helped them carry out the end-to-end testing process without any disruption. After checking the end-to-end testing process and the product release, it would not have made much difference for the technical team to be on the testing site. However, the maintenance of the software performance and quality assurance was largely done by the offshore team.

Testing during Pandemic

The testing team still maintained the right blend of manual and automation testing. But a few things changed during the pandemic due to certain factors. There were sudden restrictions on travel and human contact. People were working from home and remotely, and international travel came to an abrupt halt. The testing process, however, could not have stopped. Organizations realized that it is only wise to adopt remote or offshore testing as an option. As test automation is more improvised and integrated with high-end technologies, remote and offshore testing would be as productive as onsite testing.

The remote testing model proved to be extremely convenient as the organizations could save a significant operational cost while the testing team handled the technical challenges and adversities. The technical team overcame many challenges like time zone differences, travel restrictions, and time constraints, ensuring 100% success in handling the end-to-end testing project from offshore. The team paid extra effort to deliver the project with utmost competence and assurance that all the testing aspects were considered and that all errors were addressed well without fail. Organizations are more confident that quality project delivery is possible even with challenges amidst the crisis.

Testing after Pandemic

Organizations are more prepared to deal with crisis and keep their business as usual (BAU) functional. It is no longer about choosing a testing project model. They have two models and multiple testing strategies based on their specific project requirements. Automation and manual testing go hand-in-hand and are applicable for many testing projects. The testing of banking or financial applications is exceptionally vital. Hence, it is necessary to have the most updated test automation tool to combine with the right test strategies, planning, and practice.

Organizations would not forsake either offshore or onsite testing models. Instead, both the testing model would act as a support to each other. Applying offshore testing proved to be a winning game for many organizations, as they succeeded in implementing the testing project and reap the benefits of offshore testing. Organizations have saved time and costs by adopting offshore test project models. Onsite testing is advisable when organizations have the in-house digital testing architecture to carry out the testing project. It is critical to have a compatible set-up of in-house architecture for the onsite testing model.

Conclusion –

After years of flourishing by offering onsite and offshore testing models to many organizations, Yethi has successfully delivered and completed 9+ offshore testing projects globally during pandemic 2020-2021. We are a niche QA services provider and have years of experience in delivering onsite & offshore testing projects. Having expertise in offering end-to-end testing services across all the major core banking applications with functional areas like Liabilities, Payments, Assets, Trade finance, Treasury and more, we have worked with 90+ clients across 22+ countries. We have not let our clients suffer from this unprecedented global situation and provided complete support to help banks avoid any business disruption and be prepared for any potential impact.

Our offshore testing model is designed considering all aspects like project knowledge, time constraint, travel restrictions, time zone differences and more. Our onsite and offshore testing models are managed by expert consultants and supervisors and backed by highly skilled resources and maestros in testing and programming to ensure that the testing projects are efficient and cost-effective.

Our highly experienced testing & digital consultants understand the processes and technologies involved in digital projects & quickly scale capacity to meet the needs of your business. Our dedicated offshore and onsite team can continue the workload with proper coordination, creating a continuous testing cycle.

We address the challenges of business continuity through our efficient testing models. Our 5th generation robotic codeless test automation tool Tenjin is built with intuitive features and supports our QA services. It is a fast and scalable test automation platform and works flawlessly across multiple applications to provide accurate test results.

Rising Customer Risks in Digital Lending, how efficient test automation can help?

Yethi blog images

The traditional lending process was time-consuming as the time for credit appraisal and disbursal used to be around three to four weeks, and the average time for account/money processing used to be approximately 60 – 70 days. In the traditional lending process, customers have complained that due to 30 days of the moratorium, the EMI would have started way ahead of the lending amount credited in their account. Often, customers used to opt for 6o days of the moratorium to avoid the inconvenience.

Soon organizations realized the need for digitalization to reform the lending process. Leading banks worldwide adopted digital lending to slash down the processing time to 24-hours. Digitalization brought a transformative change to the entire lending process. There has been a significant shift in end-to-end credit journeys, including the customer experience. Digital transformation has supported the credit processes. Digital transformation has improved revenue growth and achieved significant cost savings.

Digital lending allows customers to submit loan applications online. From applications, to documentation, verification and amount credited to your bank account, the entire process is carried out on mobile applications, and it takes less than a day to credit the principal amount to the customer’s bank account. From three weeks and 60-days, the time to cash is now reduced to 24-hours.

Rising customer risk in digital lending

Banks are enhancing the process by adopting paperless loan approval. They are automating the entire process to improve time and quality. But digital advancement has its own limitations. There is a rising concern for customer risk associated with digital lending. Customers share account details, personal information, credit history, and more on these applications. Hence, organizations must ensure that they maintain the stability, security, performance, and accessibility of these platforms.

The organizations are currently digitizing the credit and lending process. The banks are focusing more on improving customer experience by reducing the time taken for lending process. While organizations reduce the lending time, there is a major concern arising from customer risk. Let us look into the types of customer risks associated with the digital lending process.

  1. Multi-layered transaction process – The digital lending transacti0n is multi-layered as various lending services are outsourced to different entities. Multiple Fintech companies operate behind the operation to create a platform for transactions. As the customer uses these tech platforms for transactions, it becomes increasingly complicated in the cases of grievance redressal, like who will address the customer complaints, what actions should be taken and by whom to ensure that the services are more effective.

The platforms are integrated by embedded finance that forms a layer of services by different fintech modules. These platforms also work based on an algorithm that matches borrowers to lenders. While this algorithm creates efficiencies because several activities are performed simultaneously in a broader lending spectrum by outsourcing it to many Fintechs, there can also be certain drawbacks. If the borrower has appointed a defaulter as a guarantee, Fintech will address the loss. However, at the time of collection, customers will face many challenges.

  • Irregularity in information during loan origination process – The terms and conditions in the lending process are lengthy. The lending process becomes complex because not all organizations will have similar terms and conditions; some will have more than others. It increases the customer risk because customers may not have thorough knowledge and understanding of the repayment terms while signing the loan agreement. The customers may not comprehend the information like the interest rate, processing fees, overdue charges, annual percentage rate and more if not informed by the lenders. They would also not know the consequences of repayment delay, credit score impact, and implications of NPA.

Customers are also not aware of the payment recovery actions that organizations adopt. All this inadequate information makes borrowers make uninformed choices and affect their credit ratings. The loan disbursal is quick in digital lending, but without adequate information about the charges and consequences of non-repayment, the risk will increase.

  • Effects on unfavourable credit history – The previous point brings me to the current one that if the customers are not informed about the adversities of repayment delay or repayment overdue for months, it will affect their credit records. Most customers are not even aware that non-repayment or delays can affect their credit eligibility for future loans. Once the credit score is evaluated low, the customers must take multiple measures to rectify them or obtain credit approval to avail future loans. A low credit profile can lower the credit records making it difficult to apply for a new loan.
  • Lack of communication and transparency on assessment of creditworthiness – Digital lending, unlike the traditional lending process, which follows a thorough process of evaluation of customers’ credit profiles, does not engage in interaction with the customers, which is a requirement to analyse the customers’ creditworthiness. Digital lenders spend a lot of time on automated IVR, text messages, and social media advertisements to create awareness and push their services. Borrowers are not even aware of how the lenders have procured their contact details and credit history. It is not even clear how the lenders have evaluated the credit eligibility of borrowers. It creates a lot of confusion regarding whether it is spam or a genuine approach.

Like traditional lending, digital lending also considers two important aspects of the lending process; the customer’s willingness to pay and the ability to pay. While the first intention is evaluated through the customer’s previous credit history, the second intention is evaluated by the customer’s salary credited in the bank account, debit and credit history, investments, liabilities, and more. While applying for a loan, the digital lenders request access to contact details saved on customers’ phones. The lenders use this alternate data model to cross-verify borrowers’ credibility and positive intentions.

  • Lack of suitable assessment device – It is easy to avail of loans digitally as the processing is quick. But there is a lack of borrowers’ credit worthiness assessment that complicates the entire lending process. Often lenders provide top-up loans based on the timely repayment by the borrowers without a suitable assessment. This added loan sometimes may not flow well with the borrowers, and they may end up in high overdue.

The overdue reason could be the high-interest rates imposed within a short loan tenure. Several instances in the past highlighted that customers ended up being loan defaulters, and organizations had to contact them and force them to repay the loans. The collection process in digital lending happens digitally (mostly auto-debit). If customers miss one EMI, it will lead to a serious outcome, and lenders might look for alternative ways to recover the loans. Both borrowers and lenders face harassment.

  • Lack of grievance redressal – Digital lending lacks promptness in addressing customer complaints. In fact, the grievance redressal is not as quick as the loan disbursal process in digital lending. It also lacks transparency for customers, which their trust in digital lending. The digital lending ecosystem evolves multiple service layers offered by many fintech, making the customer interaction complicated and confusing and finally leading to failed redress. For most lending fintech, the only option for redressal is either through an integrated chatbot or WhatsApp chat sessions, which have certain limitations and do not always suggest adequate information. All these increase the intensity of redressal issues, and customers face problems.
  • Risk of compromised personal data – The unique selling feature of digital lending is how they gain access to customers’ personal data and use these alternate data for customer onboarding and credit appraisal processes. But it can be equally detrimental if the data points are sourced from external data agencies. Sometimes the borrowers sign two agreements in case the digital lending happens through a third-party service provider. In the above kind of agreement, the first signed agreement would be between the borrower and the lending app, where the lending app would be entitled to a different entity.  This structure allows the third party to gain access to customer data to collect all necessary information. These sourced data can be misused without the knowledge of the customers.

Why testing is an important digital lending platform?

Let us consider a scenario; you enter all your details, and suddenly the application stops responding with a notification message for you to close the application. You have to turn off the application, unaware of whether the application has recorded the details you have already entered. Or, you upload your documents and click your image, but the image does not get saved. The digital lending platform might have to contact the customer to inform about the missing information and ask them to upload all details again. Customers relate to the digital lending platform because of its seamless functionalities, easy navigation, superior performance, and security. If any of these is compromised and has errors, customers would not think twice about discontinuing using the application.

As per a report in Statista, “Digital lending is one of the fastest-growing fintech segments in India and grew exponentially from nine billion U.S. dollars in 2012 to nearly 110 billion dollars in 2019. It is expected that the digital lending market would reach a value of around 350 billion dollars by 2023”. We can imagine the growth of digital lending in the upcoming years with a 13.5% CAGR. The projected data give us an idea that the number of the digital lending platform will increase, which implies that it would need rigorous testing to ensure that the platform is top-notch without any technical errors. Each Fintech must also ensure that no organization loses their business to their competitors due to technical glitches of applications.

Let us investigate how efficient testing can improve the digital lending experience.

  1. UI/UX and integration – Customers seek platforms that are easy to use and navigate. Testing can evaluate a clean UI design and integration point to ensure that the customers enjoy a seamless experience of the lending platform.
  2. Performance – It is a massive turn off for customers if the application stops responding or if there is a performance error. Performance testing can ensure that the digital platform eliminates the possibilities of performance issues in the lending application.
  3. Accessibility and functionality – Customers relate to applications with easy accessibility and functionalities. They will not prefer using an application filled with features and functionalities. It confuses customers with the click-boxes and fields that do not allow them to navigate through the window command. Functionality testing helps detangle the application so that customers can easily access the applications and ensure that the platform performs at an acceptable standard.
  4. Security – Security is an important aspect of a digital lending platform. Customers share data with an expectation that the platform will maintain customer data confidentiality. The digital lending platform must ensure that the security of borrowers’ details is not compromised. Security testing can ensure that digital lenders maintain data security under the proper protocol.
  5. Regression – Changes, modifications, and addition to the digital platform are extremely frequent. Each change implemented in the application can harm the entire application functionality if not validated properly. Regression testing ensures that the new features are integrated adequately and correctly without disrupting the previous application features and functionalities.

Conclusion – Test automation is an effective solution to scrutinize the workflow of digital lending systems workflows. It validates the end-to-end process and saves time and effort for each implementation. Digital lending platforms have a high degree of inter-connectedness, which requires repeated testing to minimize manual efforts and achieve optimal coverage.

At Yethi, constantly upgrade and update your LOS and digital lending platforms to make them flexible and agile. The major challenge in testing these systems includes usability, performance, security, UI/UX, and Configuration. With Yethi’s robotic, 5th generation codeless test automation solution, Tenjin and deep domain expertise, the experts address the above challenges. Our team help banks and financial institutions drive their testing operation and ensure that their customers achieve their business goals within the stipulated timeline. Our intuitive solution – Tenjin, reduces 60-70% testing turnaround time.

Testing the fastest growing Financial Management Systems

Image for blog content

Financial transactions are a part of our daily lives. How we manage our assets, income, and expenses must all be recorded in a system. A business must see its present and future i.e., debit and credit accounting, to ensure that they are compliant with the industry’s accounting standards. It is the reason that every organization must have a financial management system to record the financial transactions and provide a genuine report whenever needed.

The least you would expect is not to leave your customers dissatisfied without a proper financial management system (FMS). FMS is software used by organizations to manage assets, income, and expenses. An FMS reduces accounting errors, maintains audit trails, and remains compliant with appropriate accounting standards.

A financial management system must have the following features to qualify as an appropriate system for every organization.

  • Maintaining the transparency of all payments and receivables
  • Calculating the asset depreciation over the time
  • Tracking the liabilities
  • Maintaining the data integrity and security
  • Updating the reports/records
  • Managing multiple bank accounts
  • Managing and repaying prepaid expenses
  • Reducing overall paper records and paperwork
  • Organizing income and expense statements and balance sheets
  • Maintaining the audit trail accuracy

Purpose of financial management systems

The purpose of the financial management system is to keep a complete record and help the organization determine how to acquire and distribute funds, make critical financial decisions, enhance profits, increase the company value, and maintain business stability. Financial management forms the core of every organization. The organizations use financial management systems to manage their income, expenses, and assets with the objectives of increasing profits and ensuring sustainability.

The responsibility of an effective financial management system is to improve the short- and long-term business performance. The software helps streamline invoice and bill collection, removing accounting errors, reducing record-keeping redundancy, and ensuring compliance with tax and accounting guidelines and regulations. FMS helps in quantifying budget planning and offering flexibility and scalability to accommodate change and growth.

As a part of growing financial management software, the software can also include features like supporting the creation of ad hoc reporting, month-end, quarterly, and year-end closing report generation capabilities.

Testing financial management systems

Financial management systems carry a massive responsibility of managing, tracking, and reporting financial decisions. Organizations cannot afford to go wrong with FMS. Organizations need support with strategic test designing, test planning, and test execution across the entire software development lifecycle.

The organization must consider different project stages to ensure maximum quality at different stages. There must be a thorough requirement analysis, followed by planning and scenario designs. In the test design phase, reviews are collected, the Internal Quality Audit Team (IQA) are leveraged, and the designed test cases are reviewed periodically by SMEs and domain knowledge experts. Test cases are built based on designs, followed by test executions. Ensuring quality is an essential requirement in a test execution phase. In this phase, detailed entry and exit criteria are evaluated, and defect status is reviewed periodically.

For extensive software such as financial management systems, it must undergo end-to-end testing to ensure the software quality.  A financial management system must be evaluated under different stages during the software testing lifecycle. These evaluation criteria include requirements assurance, integration assurance based on application suite and system landscape, functional assurance based on user acceptance, and non-functional assurance based on application performance and security. It is also important to automate test execution wherever applicable and conduct regression testing to eliminate redundant test cases.

Conclusion

At Yethi, we have successfully executed an FMS testing project for multiple clients with over 450+ branches and 300+ branches across the country. We have empowered many businesses with our proprietary 5th generation codeless test automation tool – “Tenjin”, and a repository of 850K+ test cases. Our clients have already reaped the benefits of the FMS integration testing solution with their existing Core Banking System model. We have successfully covered 4000+ test cases on different platforms.

Are open-source test automation tools reliable for banking systems?

yethi blog image

Banks are steadily adopting open-source test automation tools. Let us explore why banks rely on open-source test automation tools. Banks in less than half a decade have witnessed growth in technology and digital advancement. Open-source test automation tools offer banks a competitive advantage to remain updated with technological development.

It helps banks in cost reductions, stability, easy accessibility, training testers, testing in-house developed applications, and more. Because of its benefits and advantages, open-source test automation tools have evolved as an industry standard and became a necessity for banks and financial industry. It allows people working and evaluating the framework in large groups to identify errors, flaws, and technical glitches with ease.

The current age banking systems

Banking systems in the current times see a greater digital acceleration. The banks and financial institutions confronted the most fastidious situation and came out unharmed. The banking system is healthier and stronger in handling adverse scenarios after dealing with a global pandemic. Banks and financial industry have seen significant growth in technologies in recent times. Banks now follow the latest open banking trend, and there is unrestricted growth globally.

As per a recent report in Statista, the number of open banking users worldwide is expected to grow at an average annual rate of nearly 50% between 2020 and 2024, with the European market being the largest. As the graph shows, in 2020, Europe counted approximately 12.2 million open banking users. This figure is expected to reach 63.8 million by 2024. As of 2020, 24.7 million individuals worldwide used open banking services, a number that is forecast to reach 132.2 million by 2024. This growth in technology requires steadfast system validation to ensure that banks continue to perform and innovate.

The benefits of open-source test automation tools

To substantiate the question, “are open-source test automation tools reliable for banking systems” I will state a few benefits of open-source test automation tools in this article. Let us go through the reasons one by one to understand why open-source test automation is reliable for banking systems.

  • Better support and collaboration – There are vast fields of information available on the internet that testers can consult to overcome obstacles. Open-source framework enriches online communities, which allow the team from different locations to interact and collaborate with each other via a centralized server. There is a constant flow of information transfer within the community without any downloads and uploads.
  • Cost-efficient – The open-source test automation platform has low licensing costs and minimal hardware needs. The testing components are easily reused and have greater scalability, making the task of managing the performance and load testing easy. Testers can adjust total cloud storage based on the testing requirements making it flexible for organizations to opt for a pricing plan. All mentioned above help reduce the cost of using an open-source test automation framework.
  • Prompt testing – Open-source tools hasten the test cycles making it much shorter than the cycles run with traditional tools. Setup and tool deployment are prompt without the need of installing. The productivity remains unaffected as test updates are tracked in real-time. It reduces the overall time to market making the organization to focus on the quality and deliverables.
  • Overall quality – Several users and developers come together to ensure the quality and security of the open-source platform. The team comprises multiple developers across the globe who are among the best in innovating, improving, and enhancing the quality of the open-source test automation platform so that the users get a high-quality test automation package.
  • Easy to customize – The open-source test automation software comes with a customizable option to suit the specific requirements of the testing department. The codes are easily editable and offer smooth functionality.
  • Virtualization – Virtualization reduces the cost by easily sharing resources and making the best use of their respective skills. Virtualization ensures that testing is more efficient and user-friendly.
  • No restrictions – Open-source test automation platforms allow the organization to work with skilled teams and individuals. Users can fast track the decision-making process with complete control of the execution process. As the highly competent users and developers form a global community, there is uninterrupted support without restrictions.

Open-source test automation tools reform the banking systems

The banking and financial industry is undergoing a massive shift with the appearance of agile and DevOps practices. The importance of software Quality Assurance has increased to ensure the reliability and stability of banking software. Banking systems must be updated with regulatory and functionality changes frequently. Testing the applications from the start will only increase the time to market.

To eliminate the delays, banks and financial institutions are embracing DevOps practices. They are speeding up frequent iteration by establishing CI/CD pipelines and releasing small segments of applications in batches. QA teams are enabling early testing by taking the shift-left approach. Organizations are adopting the DevOps methodology that combines the development and testing teams to focus on a result-oriented QA process. The development team works in a cohesive manner where the development teams create and run unit tests while the test teams validate these at the API and UI layers.

As application development adapts the cloud native technologies, they are built with service packages and deployed as microservices. Open-source test automation tools speed up the testing process of financial and banking applications while reducing cost, enhancing stability, and offering easy accessibility. Banking applications are now managed on cloud infrastructure through DevOps processes and continuous delivery workflows making it accessible, flexible, and scalable.

The teams can ensure high software stability as test automation helps to achieve a larger test coverage and higher level of regression testing. Teams are also focusing on preventing and predicting application performance issues as a result organizations are replacing performance testing techniques with performance engineering.

Different types of open-source testing tools

To test the different types of banking applications and interfaces, the organizations must select the testing tools. The selection of testing tools must be based upon the two functional or non-functional testing aspects. The areas included in functional testing are Web UI, mobile app UI, and API validation, whereas the non-functional test areas include performance, reliability, scalability, and accessibility. The following are the types of open-source test automation tools that can help us to validate the banking software.

  • BDD based test automation tools

Testers or business analysts can create test cases in uncomplicated text language using BDD or Behaviour Driven Development framework. This software development approach allows even non-technical team members to understand the project details.

  • API automation testing tools

Teams are adopting agile and DevOps methodologies and shift-left testing approach that shortens the release cycles. It is imperative to execute API testing as it bridges the differences between unit and GUI layer testing.

  • Mobile test automation tools

The open-source test automation framework can help to automate workflows for native, hybrid and web apps. Many tools offer cross-platform support and JIRA integration.  Mobile test automation tools can automate workflows of iOS, Android, and Windows apps and offer support for multiple programming languages like Java, Ruby, Python, PHP, JavaScript, and C#.

  • Performance testing tools

Performance testing tools are intended for load testing of web applications. Many such tools are open-source test automation tools offering load and performance testing for cloud-native applications, APIs and microservices. A few performance testing tools allow writing test cases in ES6 JavaScript, while other tools offer built-in support for HTTP/1.1, HTTP/2 and Web Socket protocols. Some open-source test automations tools can be introduced into automation pipelines in Jenkins, GitLab, Azure DevOps, CircleCI and other CI/CD tools for performance regression testing.

  • Reliability and stability testing tools

These open-source test automation tools offer services on the cloud for generating various kinds of failures, detecting abnormal conditions, and testing the ability to endure the adversities. The main goal of focus of reliability and stability testing tools are to keep the cloud applications safe, secure with high reliability and stability.

  • Accessibility testing tools

Open-source accessibility testing tools offer thorough application testing to ensure that even the people with disabilities or specially challenged, of all age groups and different races, can use the applications without any issues or disruption. However, application testing must remain compliant with accessibility standards like WCAG 2.1 level AA and AAA, Section 508, ADA and EN 301.

Conclusion

Banking in current times is evolving fast. If it must keep up with the pace of fast changing technology landscape, the banking QA software QA must be ready to adopt newer techniques and tool sets. Banking and financial applications are the most versatile. Each application has functionalities only specific to the requirements, hence, to maintain the quality of the applications it must follow the e2e testing process. This article highlights the different open-source test automation tools and how banks can rely on them for their software testing.

Is India’s digital lending market equipped to manage the QA risk for appropriate digital experience?

India's lending market

Technology has made Indian banking systems move from physical to digital platforms. Amidst the rising concern of the global pandemic, when the entire world moved within home confinement and physical touch and interaction was restricted, banking needed a massive transformation. Since banks and financial institutions started digital transformation journeys, banks have elevated to internet banking and digital means of payments, digital account opening, digital lending, wealth-tech, and invest-tech solutions. Banks have moved further and adapted neo-banking models and became ‘Banking-as-a-Service’ (BaaS) platform providers.

Like all other channels in banking, the lending market is highly influenced by digitalization. With deep penetration of internet facilities, growth of services available on the digital platform, advanced technologies, regulatory changes, and more have triggered the growth of digitalization. Customer expectations have increased as the demand for virtual banking has increased like never before. It becomes a priority for banks to meet customer needs without compromising on superior customer experience. With the rise of fintech, the growth of digital banking has become inevitable.

What is QA risk in lending?

With the digital expansion, lending companies are faced with challenges like unethical business practices, mis-selling, cybersecurity, and data privacy concerns. Maintaining Quality Assurance for financial applications is crucial because it ensures that customer details and money both are protected. By testing the financial applications, organizations can validate the regulatory and reliability of the applications. However, there are some potential QA risks in the lending market.

Some of the common risks in software testing and QA of financial applications are,

  • There is a lack of communication and interaction between the lender and the borrower. An inadequate regulatory framework for digital loans like consumer loans, instant loans, etc., makes the matter more grave. It may lead to delinquency and potential fraud, which require safeguarding mechanisms against fraud in the lending platforms. Possible interaction, adequate regulatory framework, and applicable verification are necessary to prevent undesirable outcomes. Organizations must formulate an apt quality framework to save valuable resources and meet deadlines.
  • There are frequent changes in applications that may arise due to customer requirements. The request for changes is so frequent that it leads to resource gaps or exhaustion. Organizations must ensure product quality while meeting the launch deadlines. It creates immense pressure on the team to manage the risk while handling the project deadlines.
  • Sometimes, a lack of prioritization may shift the focus to insignificant aspects. The situation can be more critical if there is a lack of monitoring mechanisms for lending service providers and digital lending applications. The team pays more attention to the insignificant features ignoring the primary ones. Hence, it is critical to prioritize the main functionality and product highlights and build a monitoring mechanism to define and monitor the core functionality.

From loan origination to collections, the lending lifecycle has become digital. To render lending services, banks are collaborating with several third parties like fintech, distributors, SaaS providers, thus exposing borrowers and lenders to new and heightened levels of risk.

Importance of QA in lending service for outstanding lending experience

The importance of QA increases to ensure that the customers have an outstanding digital lending experience. The innovative operating models and structures evolved around digital lending demand the need to evaluate the risks and protect the customers and lending organization data. QA in lending services is critical as it helps in monitoring the system performance and functionality to manage the risk.

The risk management frameworks of banks and NBFCs have started utilizing digital touchpoints for a proactive risk assessment of client profiles. Without an adequate QA service validating the connectivity and performance of the digital touchpoints will be an impossible task for an organization, thus increasing the probability of risks. It will also hinder the organization from insightful decision-making. QA prepares your systems to perform without errors in identifying potential anomalous transactions.

An adequate QA service helps organizations regulate and formulate better standards for cybersecurity, privacy, customer servicing, dispute management, system availability and performance, and fraud. RBI frequently changes its guidelines, which requires organizations to incorporate the changes in the systems. A good QA practice will help organizations validate the changes in the systems without an error and remain compliant with frequently changing RBI guidelines.

Also, with these RBI guidelines changes, the organizations must assess the systems’ worthiness of the apps. Validating the systems against cyber threats is a critical exercise that lenders must follow. An adequate QA practice in lending ensures that the system is perfectly sustainable, accessible, and reliable even with these changes. QA practices also see that the apps can adapt to the contractual terms and conditions, customer rights and awareness, dispute resolution, manage fraud, and more.

How to manage QA risk for appropriate Digital experience?

To address the QA risks associated with testing of financial applications, the QA testers intensely scrutinize the following key aspects of the financial applications.

  • Security – Ensuring application security is a pivotal exercise for lending institutions. The Cyber-criminal makes financial applications and data (customer and organization) centre a soft target. Cybercriminals can gain control over customer accounts and misuse the data. The QA team tests the platform security to ensure that the applications and the data are protected and secured from all possible data manipulation.
  • Reliability – Financial applications have the extreme responsibility of assessing, processing, and storing sensitive customer data. This exercise ensures the application reliability of how accurate the applications can process and store data. A good QA practice ensures that the financial applications have a high level of data availability. It also confirms that even if the application performance fails, the applications can still protect the data.
  • Performance – It is critical to evaluate the performance of financial applications concerning the transaction time and transaction frequency. The banking, trading, and lending applications process many transactions in a short time. The apps cannot delay the response as each transaction request is critical. Any delay in application response can impact business operations. QA services validate the application performance during high traffic and heavy transaction volume. It identifies the performance bottleneck and prepares the systems to perform without disruption.
  • Regulatory Compliance – Every organization must comply with all regulations and government guidelines. The financial institution must prepare the operation to adapt to the frequent changes in system regulations so that the organizations meet the requirements of regional or national governments or various international regulatory bodies. A good QA practice prevents system failure by meeting the system’s compliance against civil, financial, or even criminal consequences.

Is India equipped to manage the QA risk for appropriate digital experience in lending market?

India has witnessed extreme growth in innovation and technologies in the past couple of decades. The country has been so proactive in embracing the digital transformation that even in a grave situation like the global pandemic, Indian financial institutions could pull it through. Today technologies drive Indian banks and fintech NBFCs. India’s digital lending consists of services like unsecured loans to secured loans, personal loans to business loans to vehicle loans, and loans for individuals and MSMEs in various age groups and segments.

Since the Indian banks are steadily adapting to innovative digital approaches across all channels, the fintech NBFCs could have been far behind. They are adopting digital lending like all other channels. Banks and NBFCs have collaborated with the e-commerce firms to finance the products to the buyers and encourage the suppliers and businesses to do business without any disruptions. Financial institutions also partner with marketplaces, aggregators, wallet companies, payment facilitators, etc., to cater to digital sourcing models. Financial institutions are now leveraging advanced technology and partnering with various fintech to offer products like Buy Now Pay Later, a point-of-sale credit, and others.

There are several technologies like data analytics, alternate data models, and data-based underwriting models that financial institutions use to create a digital database and reduce turnaround time and operational costs. Financial institutions have partnered with account aggregators to decide on the credit eligibility of the customers. Technology allows companies to undertake income assessment, loan monitoring, KYC data assessment, and create a single view of the customer across their liabilities and assets by leveraging data from other financial sources. The process will allow the lenders to onboard new customers with ease.

Financial institutions also utilize emerging technologies like open banking or video KYC, which requires them to coordinate with fintech for an array of financial services like lead acquisition, KYC verification, income verification, e-signing and e-stamping, and processing fee payments and collections. The Reserve Bank of India has formed a Working Group on digital lending, which addresses the risk posed by digital evolution in financial services. This group also ensures that organizations reap the benefits of digital innovation.

If organizations encourage the covert digital or neo banks, digital-only NBFCs or banks, they must ensure that their QA is top-notch. Organizations are testing their systems and platform. Organizations have adopted an agile testing methodology to include QA practice early at the development stage to highlight the errors so that the team can identify and resolve those issues. Testing has become an integral part of the development stage. QA practice gives the banks and financial institutions that level of confidence and liberty to innovate and introduce new technologies without any restrictions. 

Conclusion

The growth of digital lending had a tremendous impact on organizational setup, technology, compliance, and operational costs for digital lenders. The entire structure of the financial organization is changed. Organizations use AI/ML-based underwriting algorithms to offer better monitoring and governance in the segment. Digital lending is building customer trust by providing more transparency providing a comprehensive framework and a progressive regulatory environment for the fast-growing digital lending segment.

Banks and NBFCs successfully offer robust and seamless digital lending infrastructure to existing and potential borrowers. They effectively address and mitigate issues concerning cybersecurity, data privacy, operational risk, third-party risk, and fraud risk. The financial institutions and their partners are reaping the benefits of digital innovation while mitigating potential QA risks to offer an outstanding digital experience to the borrowers.

Improving core banking implementation with viable test automation approach

images for blog content

Banks and financial institutions are evolving to be more customer-friendly. They no longer need complicated applications & software, bulky systems, or multiple platforms to store customer and banks’ data, simply because it no longer serves the purpose. Hence, they opt for various core banking solutions, which help them bring all data onto a uniform platform and be more strategic and organized in maintaining the details.

Core banking implementation is a transformation journey for financial institutions. But 7 out of 10 banks go through many challenges during the different stages of the implementation project. These challenges include the non-functional aspects like stress, performance, or security penetration of the project. Let us look at the consequences of avoiding these mandatory checks. On a few specific days, banks may see a sudden spike in traffic; it can result in an extreme load on the system leading to performance failure.

In the past, several incidents were recorded where the customers were affected and disappointed with system performance failures. No banks can guarantee to function as usual with a massive surge in digital transaction volumes. Banks have realized the importance of testing the non-functional aspects of the systems, so today, it is an essential and integral part of any large-sized and mid-sized transformation project for banks.

We are a little far from realizing what performance testing means for a bank or financial institution. This article serves as a reference to improve core banking implementation with appropriate testing methodologies and a test automation approach. I will also explain why it is a critical exercise and cannot be cast aside until the last minute.

The important aspects of non-functional testing

A statistical report published in Gartner reveals that the average cost of IT downtime is around $5,600 per minute, which amounts to about $300,000 per hour on average. The calculation excludes regulatory penalties and reputational damage. This brings organizations to much deliberation about preventing downtime during production. The load testing helps an organization confirm that the systems are ready to take the usage load adequately to its capacity in the production stage.  

Knowing the objectives of performance testing

Performance testing measures the system behavior and response during peak activity hours. It ensures the consistency of the systems even with a high load. Performance testing also ensures that system performance does not deteriorate with time under average load and continuous usage. It determines the system sustainability, and if any performance bottleneck is detected or identified during testing, it must be reported and documented immediately. Performance testing also validates that the system and load is uniformly distributed across different product architectural layers. It also ensures that the system allows the access of multiple users at the same time and the system scalability to accommodate more users under the same sessions.

Performance testing scope

Performance testing becomes as essential process for a core banking implementation project and production lifecycle. It must cover all types of process activities including online transaction processing from systems interface and various channels, same day uploads, end of cycle batches, and data migration from legacy systems.

There are two methodologies for testing the core banking implementations, i.e., automated load testing and business simulation. In this article we will specifically talk about the first methodology.

Automated load testing

There are four phases of the automated load tests for performance testing.

  1. Designing phase

In the designing phase, the team gathers the requirements and studies them thoroughly to understand the scope and functionality of the application. They understand the performance requirements from a business viewpoint and analyze the matrix of business volume and historical data. The team finalizes the performance testing goals and objectives based on these requirements, finally measuring acceptable results. The automated load tests are designed, followed by an appropriate action plan.

  • Building phase

The channels and test scripts are prepared in batches for different business scenarios common to the user interface. The channels and batches test scripts are used to simulate load into the application tiers. An initial sanity check of the application is conducted after the data is migrated and uploaded onto the performance test platform. If there are remaining historical data to be created, they are injected into the system. During the build phase, the team configures the monitoring tools for gathering system performance metrics for the testing window.

  • Executing and diagnosing

The performance test is executed to validate environmental configurations and application performance behavior. Executing and diagnosing stage leads to an optimized environment for the final measurement run. Repeated performance testing is conducted to evaluate application performance behavior. There are three possible iterative stages which can be configured. And between each of these iterative stages, the team reinstates the performance testing, and the test is re-run again.

  1. Stage 1

The system behavior is recorded by executing the specific functions at the peak load. If any errors or flaws are noticed in environmental or application configurations, it is immediately reported to the respective stakeholders to upgrade and obtain maximum throughput.

  • Stage 2

In stage two, the system behavior is recorded along with the simulation of an integrated business scenario. Similar to stage one, if there are any errors or flaws in environmental or application configurations, they must be reported to respective stakeholders to upgrade and obtain maximum output.

  • Stage 3

The final round is a final round of simulation where all refinements / fine-tuning / fixes are updated from earlier test rounds and are validated. The load testing is executed at peak hours to ensure the resilience and stability of the system through volumes, endurance runs, and stress tests.

  • Measuring and evaluating

In the final measuring and evaluating phase the system metrics are captured and measured. The system testing is conducted to validate the metrics post-run. It is used to prepare the final performance test report.

Improving core banking implementation with Yethi’s testing services

At Yethi, we follow a strategic test objective. We capture non-functional requirements, set up a testing environment, script used cases, build scenarios, execute the test, and prepare PT documents based on reporting and analysis. We gather & analyze NFR, perform a feasibility study, and identify performance test tools. We set up server tier deployment, populate target database, populate target DB, external systems & licenses, and plan performance test strategy. We develop load test scripts, design load test scenarios, create test data, identify & build volume, soak, and stress scenarios. We determine and define the injector profile for injector deployment and timelines. We execute sanity, volume, isolation, stress, soak and load balancing tests.

When it comes to reporting and analyzing, we collect data samples, determine test outcomes by comparing expected performance, and maintain result reports and dashboards for all types of tests. We focus on the following,

  • Baseline Test – Measures the current performance metrics
  • Load Test – Create demand on a system and measure its response
  • Stress Test – Determine the stability of the system by testing beyond normal operational capacity
  • Soak Test – Run at high levels of load for prolonged periods.

Our performance test management is based on test execution and analysis and transaction capture and analysis. We capture and analyze transactions from applications under test (AUT) by pulling data from a web server, app server, and database server. And execute tests and analyses across various server systems through load injection and KPI monitoring. Our test management module focuses on creating and executing performance test scenarios and creating scenarios for different end-user activities against AUT.

We offer load injector and KPI monitoring as dedicated services to generate requests against AUT simulating concurrent virtual users, executing the specified use-cases. Through load injector and KPI monitoring, we collect performance metrics from all metrics collection agents and store them in the performance metrics repository. We collect load test results by Controller are stored in the result repository database. We execute performance testing for the application under test (AUT) and its components.

Handling Process Risk Categorization and Prioritization

Yethi's risk based testing

Risk-based testing is a preferred approach for many industries. Especially in banking and financial industries, where the applications are updated and released at regular intervals, risk-based testing helps identify the risks to ensure system quality at the early stage of the project. Risk-based testing requires thorough test planning, preparation, and execution. One of the critical steps is to identify the risks through the different testing methods and categorize them accordingly. This article is a detailed study of different strategies and action plans for risk-based testing; and how to handle process risk categorization and prioritization.

Risk Prioritization

Prioritizing risks is crucial for creating a framework for allocating resources. The overall order of recognized risk events, their probability of occurrence, and their effect assessments are arranged in a risk prioritization analysis to create a most-to-least critical sequential order of identified risks.

For risk impact assessment and prioritization, a variety of qualitative and quantitative methodologies have been developed. The analysis of likelihood and impact, the building of a probability and impact matrix, risk categorization, and risk frequency rating are among the qualitative methodologies used (risks that have multiple impacts). The weighing of cardinal risk assessment of consequence, probability and timeframe, probability distributions, expected monetary value analysis, and modeling and simulation are examples of quantitative methodologies.

To use these strategies for identifying potential implications, defining inputs, and interpreting data, expert judgment is critical.

Risk Impact Assessment and Prioritization

Risk impact assessment is a procedure in which we assess the probabilities and consequences of possible risk events if they are found. The results of the assessments are helpful in prioritizing risks for establishing a ranking based on critical importance. This ranking of risks in terms of their critical importance is what determines the insights into the project’s management on how the resources would be needed to manage or to mitigate the realization of high probability and high consequence risk factors.

For some projects, the effects of the risk on organizational goals and tenets are more meaningful to the managing body. Risks must be dealt with against the potential negative effects on the organizational goals. The use of risk management tools for the organization and its components can help with the consistency of risk determination.

Law Of Diminishing Return

According to the law of diminishing return, a decreasing marginal output of production can be caused by an additional amount of a single factor of production. The law considers other factors to be constant.

Monitoring Risk: Risk Tracking and Risk Assessment

Most enterprises hold normal risk assessments on a regular schedule. Most often, these are annual occurrences, but it is ideal to monitor the ongoing risk mitigation and state of identified risks as a continuous activity.

We, as humans, monitor and react to risk constantly in our daily lives; therefore, one should deal with an organization’s risk mitigation in the same way. It’s a smart strategy to perform periodic risk reviews in advance. One should make time each month to review the highest probable and largest impact risk along with the mitigation strategy that allows for continuous improvement through risk tracking and risk management.

Risk Identification

Risk identification is the process of identifying risks that could prevent the enterprise or investment from achieving its goals. It includes documentation and communication of the concerns.

Program risk assessments, risk assessments for supporting an investment choice, examining an alternative, and assessing operational or cost uncertainty factors are only a few examples of risk assessments. To assist risk-informed decision-making, risk identification requires matching the type of assessment necessary.

The first step would be to identify the project goals and objectives, therefore developing a common understanding across the team of what is needed to complete the project successfully.

The goal of risk identification is to identify the events that may occur early in the process and may have negative effects on the ability of the project to achieve the required performance or capability for the outcome of the goals.

Risk Mitigation Planning, Implementation, and Progress Monitoring

Risk mitigation planning is the process in which options and actions are developed for enhancing opportunities and reducing threats to project objectives. And risk mitigation implementation is the process in which risk mitigation actions are executed. Risk mitigation progress monitoring consists of keeping track of the identified risks, identification of new risks, and evaluating the risk process and its effectiveness throughout the project.

The risk mitigation stage involves the development of mitigation plans designed for managing, eliminating, or reducing the risk to an acceptable level. Once a plan is implemented, it is constantly monitored to assess its effectiveness with the intent of revising the needed course of action.

Risk categorization in project management is the process of classifying risks based on their sources, areas of the impacted project, and other helpful categories for evaluating which parts of the project are most vulnerable to risks or uncertainties.

The common root of the causes is also used for risk categorization. This unusual project management technique aids in the identification of project work packages, phases, activities, and roles that may be used to construct an effective risk response strategy.

The basic goal of risk categorization is to avoid unpleasant setbacks.

It also results in a systematic and structured method for recognizing risks on a consistent basis. Another benefit is that it allows management to concentrate on recognizing a wide range of dangers. Conducting sessions with participants to work with a specific risk category is good for risk assessment.

Since diverse projects often involve distinct sources of risks and procedures, it’s impossible to define a one-size-fits-all risk category for all projects. Nonetheless, the project manager should construct the necessary number of categories for risk classification.

Test Coverage

Test coverage is defined as a metric that measures the amount of testing performed by a set of tests. It consists of gathering information about the parts of a program that are executed while running the test suite to analyze which branches of conditional statements have been taken. Simply put, it is a way of making sure that your tests are testing your system, or in other words, determining how much of your framework is effective by running the test.

What does test coverage do?

Text coverage performs the following functions:

  • It finds the area of the requirement not implemented by a set of test cases.
  • It helps in creating additional test cases to increase overall test coverage.
  • It identifies a quantitative measure of test coverage that works as an indirect method for quality check.
  • It identifies meaningless test cases that do not increase test coverage.

Yethi’s risk-based testing approach

Yethi follows a methodical risk-based testing approach by selecting test scenarios based on importance to customer & securityfinancial impact, the complexity of business logic, and integration points. We review business processes, business products, applications, and integration. We design test processes to bring high reusability and offer automated business process simulation for high-risk areas. 

We maintain a risk parameter based on our analysis of the business process, risk indexing and set of products. Our risk parameter consists of regulatory, financial impact, customer servicing, operations, and system risk classifying the risk levels into different categories based on the parameter. Finally, we prioritize the test cases based on risk parameters and risk level categories. We test banking and financial applications following a risk-based approach, which requires us to have expertise in handling risk categorization and prioritization.

Aspects You Might Pay Close Attention While Testing Trade finance

Yethi blog content post image

Managing international trade and commerce on a platform requires a thorough inspection. Companies use financial instruments and products to accelerate International trade and commerce. These instruments and products make it easy for banks to transact business between importers and exporters through trading.

Trade finance is a simple mechanism controlled by 3rd party, whether a bank or other financial institutions. Now consider an instance that while processing a “letter of credit” or “credit letter”, a bank faces a performance failure or functional errors during an ongoing trade transaction. It will have a terrible impact on the trading process, which will add to the risk for both buyer and seller, putting the 3rd party (bank or financial institution) in a bad light. As the main focus of trade finance is to eliminate the risk associated with the payment and supply, the 3rd issuing party (banks or financial institutions) must ensure that the transaction is carried out without any disruption. It leads to the need for testing the trade finance platform to ensure a seamless performance at all times. 

Why testing Trade Finance is necessary?

Mentioned below are the points, which explains why testing trade finance is necessary

  1. Reduces the payment risk – It acts as a security to reduce the payment risk for the exporters and supply risk for the importers.
  2. Ensures quality system performance – Banks and financial institutions have dedicated trade finance modules and systems to process diverse trade finance transactions. Testing the trade finance module is critical to ensure that the system runs smoothly and efficiently and provides accurate results.
  3. Improves the efficiency of operations – Testing the trade finance allows companies to record cash transaction between importer and exporter by reducing the system performance errors and improving the operation efficiency.
  4. Reduces the time to process the transactions – Testing the trade finance platforms ensures the system stability to accommodate multiple information and process the transaction in less time. It also ensures that the systems perform without any technical errors even with high volume of data and speed of transaction.

Key Points While Testing Trade Finance Modules

Following are the key points to keep in mind while testing the trade finance modules:

  1. Understanding the Product: Trade finance involves multiple products banks may use to extend the facility. Each product has different features and ways of providing finance. Therefore, it is important to understand the product and instruments. Here’s a brief description of instruments for trade finance:
    1. Letter of Credits: A Letter of Credit reduces the risk of non-payments. The buyer’s bank provides a payment guarantee to the seller’s bank by issuing a letter of credit. Financing can be availed of by the seller against this letter of credit as the seller’s bank has security that the buyer’s bank will pay in case of default by the buyer, thereby acting as a bank guarantee. The buyer’s bank can then proceed against the buyer to recover the dues.
    2. Cash Credits / Overdrafts: These are some of the most common means of raising finance whereby the businesses can borrow money from the line of open credit accounts for trade. One of the key benefits of this form of finance is that the interest is charged only on the amount utilised. Once the payment is received, it can be credited to the cash credit or overdraft account to reduce the amount of borrowing and consequent interest rate.
    3. Invoice Factoring or Invoice Discounting: Here, the seller can present the invoice to the bank to avail of finances. The bank or the concerned financial institution can either purchase the invoice, collect the remittance or discount the invoice where the bank itself does the bill collection. Either way, the seller gets the required financing to meet his working capital needs. Once the payment is received, the bank adjusts the amount against the factored-in or discounted invoice.
    4. Export Credits: Export credit allows the exporter to avail of pre-shipment financing. By presenting the export order received from the importer, the exporters can use the export credits. After receiving funds from the importer, the amount is adjusted against the export credit to close the same.
    5. Term Loans: Terms loans are specifically suited for long-term projects. Here, one can avail the required amount against certain security. The loan amount needs to be repaid in instalments during the loan tenure, which is usually 10 to 30 years. Term loans can be taken against the property or any other asset of the seller. In many cases, top-up facilities are also available if more funds are needed.

2. Impact Analysis: Certain changes are carried out in the systems to increase their efficiency and meet the needs of the changing times. The impact analysis helps analyse the impact of the changes carried out in the systems. This ensures that the changes are working as intended and there are no inaccuracies.

3. Application security: Financial data held by the banks and financial institutions are sensitive. Therefore, security cannot be compromised at any instance. This makes security testing an important aspect of trade finance modules. Therefore, as trade finance involves an international transaction, security testing ensures that the transactions are carried out in a secured manner.

4. Application performance: Trade finance involves a multitude of transactions. Therefore, it is important to determine the system’s performance to ensure that it caters to the requirements of each product and instrument.  Loopholes in the performance are identified and corrected to ensure the smooth running of the systems.

Why Yethi for trade finance testing?

Yethi has been one of the preferred QA service providers for banks, financial institutions, and insurance across the world. With expertise in the banking and financial domain, Yethi provides complete software testing solutions, especially when testing trade finance modules. It includes functional testing, non-functional testing as well as advisory services.

We have tested all the functionalities of the Modules and Submodules like Letters of Credit (Export LC & Import LC), Bank Guarantee (Inward BG & Outward BG), Bills [LC Bills (Import Collections & Export Collections) & Non-LC Bills (Import Collections & Export Collections)]. We have tested multiple Trade Finance applications like Oracle FLEXCUBE, Infosys Finacle, Intellect, and more; also covered Trade Finance products like Bill Collection, Letters of Credit, Bank Guarantee, Open Account for Trade, C2C Transactions for Trade, and B2C transactions for Trade

With its plug and play banking aware solution Tenjin, Yethi brings distinctive and intuitive features with robotic capabilities that can learn and re-learn the applications. This codeless test automation solution is easy to integrate with all banking and financial platforms and ensures holistic testing of systems and software in a quick and time-bound manner regardless of the complexities of the transactions and updates.

In a Nutshell

Whether it’s B2C transactions for trade or C2C transactions for trade, trade finance is important to secure the exporters and importers. Equally important is the functioning of the trade finance module in an accurate and hassle-efficient manner. Periodic testing of the modules ensures that there are no security threats, and the module satisfies the established quality thresholds.

10 Important Aspects to Consider While Testing Mobile Banking and Internet Banking Platforms

mobile and internet banking testing

Testing mobile and internet banking platforms are essential in the current banking landscape. Customers no longer wish to continue with brick-and-mortar banking. They avoid visiting banks and standing in long queues as they know that the banks will meet their requirements even from a remote location. This daily dealing and transactions are now pushed to an extreme, where banking seems impossible without mobile platforms. Of course, inadequate performances of mobile banking have various consequences, and there is no room for pondering whether the mobile and internet banking platforms need testing. The answer to the question will always be a big “YES”.

Indian millennials totalling 440 million, compose 46% of the workforce and contribute 70% of the household income. An average millennial checks his smartphone once every 15 minutes. Digitisation has made it easier for millennials and other banking customers to access their banking accounts 24/7 without waiting in long queues. Mobile banking and internet banking have reduced the cost of banking and streamlined processes to deliver more value to customers. The key to gaining a competitive advantage is customer-centricity in banking applications.

Banking applications and software have complex structures which incorporate a wide range of features and ensure security to all its users, while ensuring a seamless and user-friendly experience. If a banking application is released full of bugs and errors with performance issues, it will damage the credibility of the bank. Banking has essentially become a multichannel provider, and a successful testing strategy is testing cloud, mobile, internet and other aspects of the banking applications to ensure proper performance.

Let’s look at the ten aspects that banking applications (mobile or internet banking) must consider while testing the platform

  • Total coverage of workflow and business requirements
  • The functional aspects of the application
  • The security aspect of the application
  • A fool proof disaster recovery programme to protect users from unfair practices
  • Data Integrity
  • User application, support service sectors and facilitate payments through multiple gateways
  • Integrate well with other apps, including billing apps, credit cards, and trading accounts
  • Fast processing of secured transactions
  • Increased storage capacity of banking apps
  • Be user-friendly, support users across all platforms and on all devices
  • High auditing capability to troubleshoot customer issues

Testing Internet banking platform and mobile banking platform for banking apps

While testing banking applications, one of the important issues to address is data complexity. Banking applications store all sorts of private information, data, passwords, and assets of the customer in the backend. The backend databases should not be affected by malware. Testing ensures that the data is protected. The bank should have an automation tool to check data connectivity continuously. Data connectivity testing is tested over a virtual private network continuously. This will ensure that the private data is safe. The following testing methods are recommended for internet banking and mobile banking platforms:


1) Privacy governance:
The most common privacy governance model that is used in data protection is a decentralised model where different business owners within the organisation are responsible for data protection matters within the scope of Indian data protection laws and   requirements, stay compliant and being proactive in solving issues. They should have expert knowledge of the data protection law and its governance and the ability to fulfil the tasks set out in the regulation. There will be various areas such as legal, IT and others involved in this process.


2) Functional testing
: The design and configuration of the banking apps have to be perfectly configured. In reality, many banking apps are designed and configured imperfectly.

The testers of the mobile and internet banking platform have to understand that all the modules and the system function as designed by developers while testing the app.


3) Performance Testing
: Performance levels consist of infrastructure, backward integration, and connectivity. Performance failures plague both internet and mobile banking. There should be regular administrative oversight of transactions happening during regular interim periods. Load and stress tests should be regularly performed so that transactions have multiple supports at the same time. The performance of the banking app comes under pressure during festival times. User experience is affected when there is a performance failure of the banking app. It could be as simple as cyber/IT failure leading to incorrect balances showing in the customer accounts. This leads to mass panic. The banking app must obviate such potentialities.


4) Integration testing:
Users use many different channels and internet connections, and testing should consider the fact that the performance of the banking app in different channels is uniform.  Banking apps should integrate with programs used by customers without difficulty and without creating hurdles and complexities. When different system modules interact on the customer’s mobile banking app, there will be bugs and errors, so the testing teams must be cautious about bugs and incompatibility impairing the performance. Some bugs are detected in the early stages of the software development life cycle. Bugs could be due to a broken database schema or a wrong cache integration. Integration testing is necessary to understand the variations in the developer’s logic against the software requirements. It is also necessary to validate the modules’ interaction with the third-party tools and Application Programming Interface. There is a multiplicity of mobile devices, used by the bank’s customers in the marketplace. The multitude of customer devices using different platforms and networks must be tested. As this is a complex process, the automation must be planned properly.


5) Accessibility testing
: Users of mobile apps may suffer from various physical problems which include being partially sighted, being dyslexic, suffering colour blindness, movability issues relating to their fingers, suffering from arthritis or other issues like using a small screen. The mobile app should be user friendly as much as possible. Testing screen readers, analysing colour ratios, html validator, inbuilt accessibility options, WCAG 2.0 checkpoints, site readability and navigation will ensure better accessibility.


6) Usability , Usage and Acceptance testing
:  Usability testing must bear in mind the needs and requirements of a different group of customers. The design of the banking app should therefore be simple. It should be tested among different groups of people as not all will have technical skills. The banking app should be user-friendly and easy enough to use so that even the luddite is able to use the banking app easily.
Acceptance testing ensures the mobile apps with their various features are accessible to the end-users and also for business needs. This type of testing could use a black box type of testing of end-users to make the app more user-friendly and accessible to end users.


7) Data Migration testing
: This testing checks whether all data has migrated with integrity from the source platform to the destination platform. This is particularly necessary when data is migrated from legacy systems to the newer applications. Testing has to ensure the integrity of migrated data.


8) Security testing
: Security testing is one of the most important aspects of testing the banking app. Banking apps are prone to fraud and phishing attacks. Vulnerability scanners and penetration testing can help in this process. Testing procedures must ensure that all international security standards are followed. The privacy governance in mobile banking apps is key as it interfaces with several other third-party applications. Trojan horses could be hidden in free games which can steal the user data. That is why several authentication factors are put in place before a customer can access his mobile banking app. The Operating system and network vary across various user mobile devices. Testing must adhere to all platform, network, and operating system security standards.

Mobiles are susceptible to theft and loss, malware, and malicious applications; there is also a lack of maturity in fraud tools and controls. There are also SMS, fraud, and operating system vulnerabilities. Testing should control these risks and ensure compliance with all security protocols.

9) Regression testing: Most banks are continuously innovating and adding new features to their banking apps. When mobile banking apps are modified, the changes can have unexpected consequences. Regression testing aims at making sure that no bugs or functionality impairments are caused due to such modifications. Regression testing is crucial for banking apps as they enable banking transactions and use the protected private data of customers. Therefore, regression testing of all updates to the mobile banking app is essential.


10) UI/UX testing
: In this type of testing the testers must make sure how buttons, fields, toolbars, colours, fonts, and icons respond to the user input. Testers need to make sure that the mobile app, software, or platform responds perfectly to the end-user.

Key Takeaways

Testing mobile and internet banking platforms can be a complex and demanding process but experienced users can employ strategies that can help banks and their clients secure a vulnerability-free mobile app and a user-friendly interface. The mobile banking app and the internet banking app solution provided by the bank should be a secure, user-friendly app which is free of bugs and errors, where the user can navigate between various pages/screens with minimum difficulty and make a seamless 24/7 banking experience a true reality. The importance of the role of testers and other software specialists in transforming this dream into practical reality cannot be understated.

All you want to know about testing Finacle Wealth Management Systems

wealth management systems

Wealth management is a support advisory service offered to the customer in effectively creating a long-term/lifetime investment plan. The advent of financial technology has been noticed in the Wealth Management also, as a result it has left an immense impact on the service. For the last several years, financial organizations are using multiple technologies like chatbots, artificial intelligence, blockchain, cryptocurrency, neo banks, Robo-advisors, and other digital solutions, to streamline the front-to-back-office operations and enhance the productivity of the advisors to offer outstanding services to the customers. 

Understanding the customer need of the hour, the financial services and solutions providers build a multi-module CRM platform that will not just provide the finest investment advice to the clients but will manage the end-to-end wealth management process. Finacle, being an industry leader, offers a comprehensive financial solution. Finacle’s Wealth Management Systems allows banks to provide new services and products in a time-bound manner besides the traditional banking services. Thus, many banks and financial institutions have opted for Finacle Wealth Management System as their trusted CRM platform to offer efficient services and strengthen their customer portfolios.

The Wealth Management Systems handle a series of workflows like defining financial goals, planning investment, creating & reviewing the portfolio, planning for estate & tax, planning assets strategically, family philanthropy, managing cash, managing & analyzing diversified investment plans, reporting, and more. As the systems are created to streamline all the processes, it requires end-to-end testing with a massive focus on handling risk and compliance and helps in reporting. As stakes are high in managing the portfolios of high-net-worth individuals and retail customers, any inaccuracy can lead to huge losses. Hence, testing the wealth management system becomes an inevitable step to ensuring system performance and protection against massive loss. This article serves as a guide to test wealth management systems.

Reasons for testing Wealth Management Systems

Following are the major reasons why wealth management systems must be tested:

  • Optimization of Customer Experience: Wealth management systems are the backbone of customer wealth creation. Therefore, their accuracy and timely service are important to optimize the customer experience. Acceptance testing can be helpful to ensure that the software meets the expectations of the users.
  • Obtain Understanding of Workflows: Testing helps in obtaining a thorough understanding of the workflows of the organization and assessing whether all the important workflows are operating independently. As banking systems handle innumerable transactions and, therefore, possess multi-layered workflows and are highly complex, understanding the workflow and testing the systems become a necessity. It also assures their security and transparency.
  • Detection and Correction of Performance Issues: Testing will allow the organization to determine major issues and loopholes in performance. This can create major obstacles in the performance of the systems and overall customer experience. After detection, the anomalies can be corrected to obtain desired results.
  • Improves User Retention: System testing helps to know how many users the system can accommodate, and the time taken to perform various functions. This will give a thorough idea of the performance of the system and the user-specific changes that shall be undertaken. This makes the system more user-friendly and helps in overall user retention.

Challenges associated with testing Wealth Management Systems

Following are the major challenges associated with testing wealth management systems:

  • Security Loopholes: Financial data is sensitive and vulnerable. Therefore, security is paramount. There might arise variations in networks and operating systems that can lead to a lapse in security features. Therefore, software testing becomes important to ensure that it adheres to the set security standards across all the networks, operating systems, and platforms.
  • Multiple Devices: Another important challenge that arises in the testing of wealth management systems is their operations on multiple devices. Each device may have separate configurations and installations that directly affect its security levels. For instance, a device operating in one OS may be more secure than the one operating in a different OS. Also, certain devices may have different functionalities and software support that can lead to reduced efficiency.
  • Lack of Knowledge: Testing experts are not necessarily finance experts. While they specialize in software, they may lack knowledge of the finance domain. This can create obstacles during the testing process that should be taken care of. Appropriate coordination between the testing and finance teams can help mitigate this challenge.

Testing Finacle Wealth Management System

Following are the major tests associated with Finacle Wealth Management Systems:

  • UI/UX Testing: A proper UI/UX is essential to ensure that the customers have a smooth experience. UI/UX testing optimizes the overall customer experience and helps organizations adopt a user-friendly approach to designing and maintaining systems.
  • Functional Testing: Here, the systems are tested for their functional designs and specifications. This is to ensure that the specifications as required by the users are satisfied by the systems.
  • Performance Testing: Performance testing is key to ensuring that the system delivers performance up to the benchmark when it comes to responsiveness, sustainability, and stability.
  • Security Testing: Security testing helps identify loopholes in security breaches and mitigate the associated risks. Data handled by wealth management systems are susceptible to manipulation, hence it is essential to ensure the security of the systems and data.
  • Integration Testing: Integration testing is essential to check whether different units and functionalities of the software interact properly. While the units and functionalities are tested separately as well, it is essential to test them in sets to ensure that they work properly when operated together.
  • Data Migration Testing: Technology keeps on evolving, and therefore, it becomes important to optimize the existing systems or create new ones. This involves the migration of data from one system to another which can make data vulnerable to security breaches and inaccuracy. It, thus, becomes important to conduct data migration testing to ensure that the migrated data matches the original data.
  • Regression Testing: Certain changes might be carried out in the existing codes and backend of the software. In such cases, it is important to conduct regression testing to ensure that it does not impact software functionality and that an application still functions as it was expected.

Important aspects of Finacle Wealth Management Systems

Following are the important aspects of Finacle Wealth Management Systems:

  • A Complete Solution: The Finacle Wealth Management Systems offer a complete wealth management solution offering a wide range of investment products and services. It allows transacting across multiple different asset classes including, but not limited to Equity, Mutual Funds, Insurance, Bonds, Futures & Options, Exchange Traded Funds, etc.
  • Client-Focused Approach: Finacle Wealth Management System ensures a holistic understanding of the client requirements and empowers experts to make better decisions. It facilitates the evaluation of clients’ risk scores and builds an ideal and personalized portfolio and visualization of the same. It also alerts whenever there is a deviation from the portfolio.
  • Low Cost to Income Ratio: Finacle Wealth Management Systems ensures automation and better operational efficiency. While the front office becomes smarter, the back-office operations witness efficient operations.
  • Use of Advanced Technology: Finacle Wealth Management Systems use advanced technology that is open for collaboration and works on the principle of interoperability. The systems are cloud-ready and can support multi-entity, multi-lingual, multi-currency, multi-national, and multi-time zone operations.

Therefore, it is important to ensure that the Finacle Wealth Management Systems are tested for their performance, accuracy, and functionalities for running the operations in an orderly manner.

At Yethi, we have undertaken various transformational projects, project upgrades and Business-as-usual. We have tested Finacle Wealth Management Systems for some of the major banks and financial institutions. Our end-to-end testing services include functional (Data Migration Audit, System Integration Testing, User Acceptance Testing, Regression Testing, and Automated Testing and non-functional testing (Performance Testing, Security Testing, and UI/UX Testing). Our Test Centre of Excellence is equipped to offer extensive advisory services and reengineer the process.

Yethi’s 5th generation codeless test automation solution, Tenjin a plug-and-play banking aware solution, which minimizes the manual effort and speed up the test execution regardless of the complexity and number of updates. Tenjin’s intuitive features and robotic capabilities enable learning and adapting to application updates with ease.

Test Automation and Monitoring: The Key to Building Consumer Trust

The key to building a successful business is meeting consumer requirements and gaining trust. There is no place for error in the modern competitive digital landscape, or even if there are, consumers expect them to be resolved at a bullet speed. Businesses must sustain their status quo with massive expansion in the economic landscape. Whether normal circumstances or difficult scenarios, customer relies on organizations to manage their transactions and data.

Let us consider the financial and banking sector for instance: as they thrive highly on customer reputation. Many banks and financial institutions have faced the consequences of going wrong with their digital services and platform. In fact, a research paper from 2017 titled Banking System Trust, Bank Trust and Bank Loyalty highlights that the implications of losing trust in banks are significant. This paper also highlights the six determinants like competence, stability, integrity, customer orientation, transparency, and value congruence as the catalyst to restoring consumer trust and loyalty towards the services that banks offer.

Consumers’ behavior changes towards banking services when they are confident about the brand and services. Trust is the most critical factor in a consumer-bank relationship. Consumers want the BFSI sector to be dependable, transparent, and approachable. To minimize the negative impact on consumers, banks must re-establish themselves as trusted advisors and providers of assistance. But it is not just the word of mouth that is impactful; it must be backed up with services that include manual assistance and system responses. Banks and financial institutions are adopting automation testing and continuous monitoring of systems to ensure bank representatives offer their services quickly, efficiently, and effectively.

Why Test Automation?

Banking has always thrived on customer loyalty and in-person interactions. Its transition to the digital realm will benefit consumers and financial institutions.

Waiting in lines for banking hours and squandering Saturdays going in and out of banks are now a matter of the past. Digital banking allows you to access your bank accounts quickly and easily from any location using your smartphone. Banks are spending less on infrastructure and saving their operating costs with digital banking.

With the advent of digitalization, banks must focus on delivering a positive customer experience at every touchpoint. A robust testing framework is vital for delivering a superior customer experience. Test automation is critical to the success of digital testing projects.

Consistent integrations, set up with automated tests and continuous monitoring, can substantially reduce the testing life cycle. These test automation strategies are required for banking institutions to successfully navigate the digital upheavals.

Through rigorous automated testing of a banking software program, a financial organization can ensure:

  • Accurate execution of activities while effectively shielding the personal data of clients
  • Following all financial guidelines strictly
  • Enforcement of all legal norms and guidelines
  • Effective transaction management without disruptions, especially during peak hours
  • Preventing fraud and cyber-attacks, making the banking application safe to use

Test automation indeed reduces time in the testing lifecycle phase, but test execution has two critical steps; one of those steps is test monitoring. Test monitoring helps evaluate all testing activities and efforts. Continuous test monitoring tracks the ongoing process and testing metrics, assessing future actions based on test data and highlighting the feedback based on the progress of the testing process to the concerned team and the shareholder. Test monitoring validates if the test process produces the desired result. Let us explore the effects of test automation and monitoring over banking and financial platforms in the light of the six determinants of ensuring consumer trust and loyalty.

  • Competence – Test automation and monitoring evaluates system competency to offer high quality service and response to the customer request.
  • Integrity – Test automation and monitoring ensures system performances as intended to function without any disruption.
  • Customer orientation – Test automation and monitoring prepares your systems to address customers’ needs.
  • Transparency – Test automation and monitoring allows companies to maintain a transparency of the transactions and trades.
  • Stability – Test automation and monitoring ensures system stability and performance even during high traffic or during unforeseen events of performance failure.
  • Value congruence – With test automation and test monitoring companies prepares systems to exhibit positive work outcomes. It ensures direct, positive effects on customer satisfaction, trust, affective commitment, and customer loyalty.

Improving quality with robust testing to build consumer trust

Through effective automated tests and continuous monitoring strategies, you can improve the reliability of your core banking systems and can significantly reduce costs.

1.        Automated tests save time and money

Software tests are repeated several times during development cycles for quality enhancement. It is conducted every time a source code is altered or modified on every hardware configuration and operating system. Manually repeating these tests can be highly time-consuming and expensive.

Automated tests are convenient in such circumstances because they may be run repeatedly without incurring additional costs. Automated tests can take hours instead of days to complete these repetitive checks, providing customers with qualitative service whenever they want. It is a time-saving benefit that also saves money for banks.

2.       Increase in test coverage

Continuous monitoring, backed by automated testing, leads to an expansion of the scope of the tests, which improves the software program’s quality. Lengthy tests, which are frequently avoided during manual testing, can be efficiently conducted via automated testing.

The tests can successfully run on multiple computers at the same time with distinct configurations. The performance and quality of banking software can be tested through automated tests that display data tables, memory contents, status of the internal program, file contents, and so on. By executing numerous complex tests throughout the test runs, automated tests can expand coverage in a manner that manual testing cannot.

3.       Improvement in testing accuracy

Even the most skilled testers can make mistakes while performing manual testing. The use of automation testing, however, results in identical procedures being performed in a precise manner and the results being recorded in extensive detail. This leads to improved banking software providing customers with better service.

4.       Avoid errors of manual testing

Automated testing can simulate numerous concurrent digital users interacting with web, software, and network applications. Customers benefit from this by being able to use the banking software for their needs in a hassle-free manner with minimal to no delays caused by network issues or internal errors.

5.       Boon for testers and developers

Automation tests provide several capabilities that help developers and testers save time. Developers can quickly identify troublesome areas of software through automation tests and focus on resolving the issues. Automated tests can run by themselves every time the source code is modified, and they can notify the team in case of failure.  With the additional time, developers may concentrate on creating more specialized software to improve the customer experience.

6.       Improved morale of the development and QA team

Manually performing repetitive testing tasks can take much time and get monotonous for testers and developers, limiting their creativity. Automation testing frees up time for the development and QA teams to work on more challenging and profitable projects. This boosts the team’s morale and confidence, which favours the organization.

Conclusion

The digital era has inextricably linked banking and test automation. The automation of the BFSI sector, which involves RPA (Robotic Process Automation) and RTA (Robotic Test Automation), AI (Artificial Intelligence), Traditional Automation, and so on, has led to the development of an efficient and sustainable economy. Automation tests generate standardized audit trails, allowing financial institutions to adhere to industry standards while incurring minimum expenses.

Test Automation in banking is relevant to address today’s needs for high-quality customer experiences and agility. Excellence in test automation is essential to encourage continuous innovations and speedy rollouts of new banking services and products to customers. Banks are quickly rising to the challenge and implementing automated testing programs to save time, increase employee productivity, and enhance customer experiences while fostering trust and loyalty.

Yethi blends the testing services and test automation solutions to help the banks and financial institutions on their digital transformation journey. We focus on improving the quality and efficiency of the organization’s core software system. We are a niche QA service provider helping several global banking/financial organizations increase the agility, consistency, and accuracy of the platform.

With our efficient codeless test automation solution, Tenjin, we have taken the test automation to the next level with an accuracy rate of nearly 100%. It is a revolutionary solution, which is easy to integrate and rapidly scan through the software and detect errors. Its intuitive features empower banking and financial solutions to work 3x times faster than any other automated testing system, while the simple plug-in and play design enables easy integration. Tenjin is developed with a focus on continuously helping banks and financial institutions across the globe to build a robust and resilient testing process.

5 Common Misconceptions About Test Automation

5 misconceptions of test automation

With the world moving towards digitalization, people expect things to swirl around in the blink of an eye. There is no room for manual errors and the time to fix those errors are even less. It only makes sense to shift to automation testing, as it has proved to be a boon and not a bane for organizations. Automation and automation testing have exceptionally benefitted industries with a massive customer base, voluminous data, less time for market launch, budget constraints, and fewer human resources. Maintaining quality assurance (QA) of companies’ software assets with automation testing is essential.

Especially in banking and financial industries, where companies cannot afford to go wrong with a loyal customer base, a large amount of data and fixed deadlines, automation testing is effective, cost and time efficient. Every time the QA team identifies a bug in the code, the testers perform a routine test across the application to ensure its quality. According to the Transparency Market Research report, the global test automation market is expected to expand at a CAGR of 15.4 percent by 2025. As per Transparency Market Research’s expectation, the automation testing market will grow from 30.45 billion USD in 2016 to 109.69 billion USD in 2025. With such demand and growth, there are bound to be questions. In this article, we will address the top five common misconceptions about test automation.

 What is Automation Testing?

It is a software testing technique that leverages specialized tools or automated scripts to automate the execution of test cases, making software testing more efficient. On the other hand, manual testing requires human effort in the form of sitting in front of the system and validating as well as executing each line to check for bugs. This testing methodology is beneficial because it automates repetitive operations and performs a few other testing techniques that would be difficult to achieve manually.

We can convert practically all manual testing into automation testing using tools and automated scripts. Test automation comes in the following forms:

Let us take a closer look at the various myths and misconceptions concerning test automation that users have.

 5 common Test Automation misconceptions:

  • You can automate all the test components: Test automation has proven to be an effective technique to reduce manual testing and tasks. That does not imply that the QA team can automate all their testing operations. We must remember that all automated testing is based on code, which is nothing but imitating manual tests. The QA team is aware of several manual parts that are not always possible to include in automated script-driven testing. Furthermore, testers are informed of which test segments to prioritize and which to test using automated testing.
  • Automated testing is more expensive than manual testing: It is only partially true. The company’s initial investment in automated testing is higher. Purchasing test automation tools or developing automated test scripts, as well as hiring testers to run those tools, are the expenses. However, this is a minor outlay that saves time and money in the long run. The QA team can save a lot of money if they implement automated testing adequately. Manual testing requires more testers and more time, extending production time and increasing the cost of testers, development efforts, and consequently, late product delivery. Over time, the company can differentiate between the execution costs of automated testing and manual testing. Time is more valuable than money. Hence, automated testing is not as expensive as companies believe.
  • Automating the test is easy: Every organization understands that development is challenging and time-consuming and implementing automated test tools and scripts is even more challenging. Enterprises and firms that can perform precise test automation can have a competitive advantage in the market. If an enterprise does not perform test automation well, it is more likely to lose money and time. Automation testing is not easy since the QA team must decide whether to use automation tools or design personalized scripts to make the test more productive. Many automated testing tools on the market are promoted and purchased on the assumption that internal testers will be able to use them without any training. The major attribute of such testing applications is the ability to automate the collection and replay of numerous manual test cases. When it comes to maintenance, the easy-to-construct aspect of the development is inherently brittle and challenging.
  • For increased automation, you need more engineers: This is another myth and misconception that prevails in the development industry. Adding more engineers or even testers to a test automation will rarely result in a positive development effect. In fact, a team of two or three testers can easily manage multiple test projects for a corporation as automation testing does not require much manual observation or human intervention. Again, the misconception is partially true because the team can perform a large number of tests in an automated manner initially. However, as the product under test changes, which is common in the rapid development ecosystem, a considerable amount of testing maintenance is required. More engineers are hired in this area. However, companies are limited in their ability to add more resources.
  • One must be a developer to write or perform automated testing: Yes, the company occasionally or once in 4 to 5 years requires a developer to write the automated test script. However, most test automation is practised using automated testing tools, which the testers can execute these test tools. Testers do not need to have hard-core programming knowledge and expertise. Just the basic knowledge of testing and programming and understanding of how to use those tools and apply them to various testing situations are all they need. The QA team must choose the finest testing tool for executing and supporting the automated tests. However, there might be situations where the testing tool available on the market does not meet the QA team’s requirements. In such scenarios, companies can hire automation scriptwriters or outsource the scripting project to third-party firms or freelancers.

 Conclusion

Delivering consistent product quality is critical to a software development firm. At the same time, firms should reduce the time it takes to promote a product. Automation is a boon for the development firm in this case. The software development and quality assurance industries should avoid the myth to understand the benefits test automation renders in the software development sector.

Yethi’s 5th generation codeless test automation solution, Tenjin is an enterprise platform. The robotic capabilities of Tenjin enable to learn and adapt to the application and its updates. Tenjin, is a plug-and-play banking aware solution, continuous testing, minimizing the manual effort and speed up the test execution regardless of the complexity and number of updates.

What Are the Different LOS Workflows? Why Is It Important to Test Different LOS Workflow?

Loan originating system

The lending process is one of the service pillars of every bank and financial institution. Lending services support financial organizations and allow them to calculate high ROIs. Banks, NBFCs and other financial institutions offer various types of loans to their customers at an interest rate fixed by the organizations. Lending processes before were all about heavy paperwork, which caused unnecessary delays, confusion, and burdens of handling tons of papers and documents of customers. Since technology has taken over, the lending process is more consolidated, organized, and systematic. IT companies and service providers have developed and introduced various Loan Origination Systems (LOS) to support the loan application processing based on specific requirements by banks and financial institutions.

Loan Operating System is a technology-driven process. It controls and monitors the workflow of loan processing and reduces the delays and inefficiencies of handling paperwork. Loan application processing workflows are the most critical feature of the loan origination system. The loan applications monitoring starts at the initial stage and continues till the process is approved. The loan origination system also allows performing the work steps at different locations at the time, maintaining control of flows. Business analysis is also a pivotal stage for loan application.

The process workflow of Loan Origination System:

The approval process of loan origination system goes through many stages. The origination process varies from lender to lender, manual and automatic. Under the whole process loan origination system is responsible for everything that occurs from pre-qualification to loan approval and disbursement. The process workflow in LOS is same as the conventional process. There are only seven stages that are critical components of the loan origination process:

  1. Loan eligibility:

The first stage is pre-qualification stage of the loan origination process, where the borrower must submit important identical documents to the lender such as ID proof, address proof (Aadhar, Voter ID, Pan card), current employment information including salary slip, credit score, bank statement, and previous loan statement to verify the customer profile for loan eligibility. After thorough credit verification and validation of the customer documents, the lender determines if the customer is eligible for availing the loan. After approval, the borrower can move to further process.

  1. Loan application:

It is the second stage of the loan origination process. Under this stage, a borrower files the loan application through online submission of their documents as most of credit companies and financial institutions are following the new technological paperless process.

  1. Application processing:

Processing the loan application is the third stage of the loan origination system. Under this stage, the department receives a submitted application and reviews for its accuracy and completeness. If the application is incomplete, it is returned to the borrower for completing the missing information. The funding is to some corporate sector business analysis is compulsory.

  1. Credit Underwriting:

Credit underwriting is the fourth stage of loan origination process. This stage begins if the application is completed. Each credit department takes into consideration a variety of different components such as the credit score of borrowers, risk scores, and many more. Due to the technological changes, this process is now automated with the help of a rule engine and API integrations with credit scoring engines in LOS.

  1. Credit decision on loan process:

It is the fifth stage of the loan origination system. This stage begins after the results received from the underwriting process stage. Under this process, the application is approved, denied, and sent back to the borrower or originator for additional information. The certain information which is not matched with the rule engine set will be changed according to the parameters fixed. The changed parameters can be in the form of the reduced loan amount or increased interest rates.

  1. Quality analysis:

This is a critical step as the lenders analysis the application a final time before loan disbursal. Under this process, the application is sent to the quality check team for analyzing the critical variables of the application and comparing with internal and external rules.

  1. Loan disbursement:

It is the last stage of the loan origination system. Loan disbursement process starts after checking if all necessary documents are submitted and undergone the requisite quality check. Most of the loans are sanctioned after the documents are signed, but some loans like second mortgage loans, business loans, loans against property, and many more require additional time for legal compliance reasons.

Why is it important to test different LOS Workflow?

It remains a focus for financial organizations to improve the LOS workflow in the current market scenario. An organized LOS workflow improves customers’ experience and return on investment. With digitalization of LOS workflow, it has become essential for organizations to test different LOS platforms. Systems must undergo thorough functional testing (user acceptance testing, UI/UX testing, integration testing, regression testing, and more) and non-functional testing (performance testing, security testing, data migration testing and more) process to perform without any technical errors. Let us see the importance of testing different LOS workflows,

  1. Data entry and verification – Maintaining data integrity and security are the focus of any organization. By testing the LOS workflow, a team can ensure that the data entry process is verified. They can further ensure that there is no misleading or missing information that is mandatory for the process.
  2. Underwriting – The LOS workflows testing improves credit underwriting. The team can easily access the customer data and information to validate their eligibility and decide whether to accept the risk of lending to a particular person or company. Testing the LOS workflow allows the team to make credit-related decisions quickly and easily.
  3. Disbursement – Testing the LOS workflow facilitates the disbursement process. After the system carefully analyses the information and the credit approves lending to a particular customer, the disbursement process becomes extremely easy and seamless.
  4. Post Disbursement – After the loan is disbursed, the system still tracks the loan application process. The system actively validates information like tenure, moratorium, calculated interest rate and more. Testing the LOS workflow process enables post disbursement process.
  5. Reports – A system has the reports used for various decision-making purposes. LOS workflow testing ensures that the report generation is quick and error-free. The testing process also allows the extraction of an accurate report from the system whenever needed. 

Testing the LOS workflow is equally important as testing the Loan Management System. Following is the process flow that is validated during the LMS testing.

  1. Loan onboarding
  2. Loan Repayment
  3. Loan Servicing
  4. Delinquency and NPA processing
  5. Collections

The credit decision is the main feature of every loan process. The system analyzes the information of customers, which helps the lenders make the right credit decision to accept the risk of lending to a particular person or company. A customer portfolio is beneficial to evaluate the capacity of the borrower. It is also important to mitigate the lending risk, and the organization must have the risk management system ready to help revaluate the customer profile. LOS workflow testing validates the system’s capacity to handle the end-to-end lending process.

Reduced turnaround time is an important criterion to test LOS workflows. Hence, the loan origination system is tested to check the system’s response time and the quality of the process. Since the loan originating systems are updated frequently with information, testers must run regression tests to ensure that the frequent changes are not damaging the system performance. Testers must also frequently write functional test cases and test data to incorporate the functional changes in the system. Designing Migration test cases prior to execution is a critical step for a team because it ensures that the system performance remains unaltered during the data migration process.

Yethi’s experience testing different LOS workflows

Yethi’s testing approach is based on complete business analysis. We understand your business strategy, direction, and objective of technology transformation and identify the role of individual processing engines within the bank’s overall IT Architecture. We also make a considerable effort to understand your system integration requirements and the impact parameters.

We build a thorough test strategy and plan to ensure that we meet all your testing requirements. We also design functional test cases based on test data, regression test pack, and migration test cases to test execution. We manage the defects by defect categorization, metrics reporting, and test closure report with an enhancement analysis report for future reference. We also measure the scope of regression and execute the regression scenarios.

Yethi’s fifth-generation codeless test automation solution, Tenjin validates your LOS by automating the testing process. Its intuitive features and the Robotic UI discovery engine work flawlessly across multiple applications. It is a fast and scalable test automation platform that ensures high system quality through end-to-end testing.

Handling Risk & Compliance in Payment Systems

Yethi blog image on topic "handling risk and compliance in payment systems"

Payments are synonyms for banks and financial institutions. It forms the very existence of the BFSI sector, which means that the industry can never meddle with the intensities and contingencies of the payment systems. Daily payments and transactions worth billions of dollars take place, which exposes the process to multiple risks simultaneously.

As the payment system is steadily shifting to the digital platform, it further raises a serious threat and concern regarding the security of the payment platform. Fraud and operational risks are high in payment innovations. Organizations are doing their bit to control the risks and threats, but it is not quite enough to ensure the complete security of the transaction and payment systems. There are three categories of risk in the payment systems. Let’s look at what are those.

  1. Fraud – A payment transaction that is carried out in a deceptive way and leads to huge financial loss. This kind of payment transaction falls under fraud risk category.
  2. Operational – The different types of human and technical errors that interrupt the clearing and settlement of a payment transaction may lead to financial loss. This kind of payment transaction falls under operational risk category.
  3. Legal – When the rights and obligations of payer and payee engaged in payment transactions are subjected to considerable uncertainty, it may lead to loss. This kind of transaction falls under legal risk category.

A brief on payment systems

Payment and financial transactions are contracts exchanged between two or more parties in the form of cash or services. A work of a payment system is to manage and settle the financial transactions and keep a record of such transactions for future reference. The exchange is made possible by modules that include instruments, people, institutions, rules, standards, procedures, and technologies. The most common payment system is an operational network that links people to bank accounts and exchanges monetary values and services through registered financial hubs.

Earlier, the payments and transactions were exchanged in more conventional ways. But with digitalization, a digital payment system has emerged. Today there are multiple payment instruments and channels like RTGS (Real Time Gross Settlement), IMPS (Immediate Payment Service), NEFT (National Electronic Funds Transfer), AEPS (Aadhaar-enabled Payments), UPI (Unified Payments Interface), SWIFT, SEPA, Wallets, Card Payments, ATM/POS transactions, Internet Banking, Mobile Banking, Third-party apps, Kiosk, and Micro ATM. Each payment system has its protocol or procedure, whether physical or electronic, and each one must be regularized and tied to compliance.

Managing risk in the payment systems

Before we learn how to handle risk in the payment systems, we must understand what payment risk is and what is the risk in payment systems. Let us explore them one by one. There are two types of risk in financial transactions – credit risk and liquidity risk. When one party does not receive the outstanding amount in the transaction process, this is credit risk; and the liquidity risk is when one party owes an amount but is unable to pay on time. Payment risk arises when a company incur loss due to some unforeseen payment events. Since businesses have long shifted their focus to digital transactions, a massive volume of online transactions and payments happen on the digital platform, which exposes them to payment risk.

Many companies have been fighting continuously against these frauds with their strong management strategies. But it is hard to remain resistant to the payment risk or forgery. It is hard to determine if a transaction is approved or if there is any fraudulent activity involved. However, an inaccurate evaluation can lead to a serious predicament like harming a company’s reputation and the monetary loss that may become hard for companies to overcome. Hence, managing the risk of a company by identifying threats, monitoring, and controlling to minimize the negative impact of risk on the company becomes an essential step.

Various sources affect the company, such as technology issues, financial uncertainties, legal liabilities, management errors, natural disasters, accidents, and more. All these can lead to risk in payment systems. With so much risk involved in payment systems, it is only fair to adhere to the rules and regulations and remain compliant with the guidelines. Risk and compliance go hand in hand. Risk is linked with the area of uncertainty, which focuses on the internal issues of an organization, while compliance is linked with adherence, which focuses on the external regulatory bodies.

What is Payment Compliance?

Shifting to digital payment has made many organizations and government to be more vigilant with the payment systems. They are more stringent in setting up guidelines now. For payment systems to remain compliant with the rules and guidelines issued by the government, company must follow a specific set of industry standards for risk avoidance. It is an essential step, which allows organizations to protect their payment systems from risk and fraud by reducing data breaches, cyber threat and more. It protects the companies’ data, improves goodwill, and avoids several fines.

Digital payment systems from the past few years have created uncertainties for financial institutions. As the payment systems have become digitalized now with the emergence of internet banking, smart cards, and mobile banking, banks and financial institutions are embracing laws and regulations to remain more compliant with the changes in the payment systems. Financial institutions study the compliance guide to payment systems thoroughly and understand the rules about all types of payment systems before offering guidance to the customers. The below mentioned are types of payment compliance,

  1. Payment card industry data security standard:

Under this type, a set of standards are developed to ensure that all companies accepting, storing, processing, and transmitting credit card information maintain secure methods of doing so. The PCI security standards council upholds it. The standards are made to protect such companies from high-risk merchant accounts.

  • Merchant ScanXpress software:

This method of compliance automates the underwriting and onboarding process. For each merchant, it provides you with a calculated risk scorecard for helping most of the businesses for avoiding risk.

  • KYC compliance:

It is compliance that involves identifying and verifying client details before opening their bank account. Monitoring and verification checks are conducted periodically. For risk-free businesses, merchants must follow the process of KYC compliance.

  • AML compliance:

The full form of AML compliance is anti-money laundering compliance that protects companies from criminal monetary activity and international transactions fraud. The rules of such compliance help detect the suspicious activity of money laundering and terrorist financial attempts.

Apart from the ones stated above there are also a few more that deserves a mention, as it ensures that the payment system remains compliant.

  • Money/currency
  • Bank checks
  • Smart cards and stored value products
  • Mobile banking
  • Allocation of loss for check fraud
  • ACH networks and NACHA Rules
  • Remittance instruments
  • Credit union share drafts
  • Credit CARD Act and disclosure requirements
  • Automated teller machines (ATMs) and automated intake of ATM deposits
  • Letters of credit
  • Internet transactions
  • Corporate account takeover
  • CFPB regulations regarding international transfers & CFPB changes to Regulation Z
  • FRB gift card rules
  • High-to-low debit posting
  • CFPB investigation of overdraft programs
  • Unfair, deceptive, or abusive acts and practices (UDAAP)
  • Payable through drafts & Documentary drafts
  • Wire transfers, including security procedures for in-person wire transfers and defences to unauthorized wire claims
  • Responsibilities of ODFIs and RDFIs regarding high-risk originators and questionable debit activity
  • Unlawful Internet Gambling Enforcement Act
  • Online authentication, including single-factor authentication resulting in bank liability
  • Home banking
  • Consensual security interests in deposit accounts

Importance of testing while handling risk in payment systems and maintaining system compliance

The national and international regulatory entities update payment systems with changes very frequently. As a result, banks and financial institutions are always left with challenges to incorporate those changes in very short notice. The systems in banks and financial institutions may face heavy damage if they are unadaptable to these changes. They always come with certain challenges and if banks fail to update their systems with these regular changes, they will fail to satisfy their customers.

Testing offers strong support that helps the organization to remain updated with sudden changes and always remain in the forefront to handle risks. Testing helps in finding out how well the systems in banks work. It also aims to find out errors in the system programming. Testing at regular intervals is also compulsory for maintaining a risk-free company while handling compliance with many payment methods. There are many different types of testing: UI/UX Testing, Functional TestingPerformance Testing, Security Testing, Integration TestingAcceptance TestingData Migration TestingRegression Testing, and more, which validates that the system functionalities in fastidious situations like quick change in payment system guidelines. After testing all the pros and cons of the company, reporting is the last process that must be followed.

Conclusion:

The only purpose of risk management is to identify problems and apply different measures to reduce them. Banks and financial institutions must follow laws and regulations to prevent fraud and risk impact. Systems and software being an integral part of banks and FIs, they must be obligated to payment compliance. Only testing can validate the system functionalities and performance. It ensures that they remain compliant with the payment systems guidelines.

At Yethi, we have tested the payment systems for national and global banks, NBFCs and other financial institutions. We have tested various functionalities of payment systems across multiple channels like internet banking, mobile banking, wallets, agency banking, ATM/POS, wallet apps, third-party apps, KIOSK, and micro-ATM. We use different API levels as middleware/switches to connect with Core Banking and other gateway/networks. We have executed functional testing, interface testing, performance testing, API testing, and security testing to validate the processes like customer onboarding, customer authentication through a pin, biometrics, and token, payment initiation, multi-level authorization, payment processing, and inquiry and statements.

Our 5th generation codeless test automation engine, Tenjin, automates the entire software testing lifecycle from execution to build and manage, continuous delivery and defect reporting. Tenjin can execute test cases across applications and devices. It has various adapters and has a provision for adopting new application adapters within a few weeks. It can identify actual defects versus expected defects for field values and validate structured messages in SWIFT. Tenjin has a UI to define test cases and offers continuous support in the delivery pipeline. It can detect and report defects with ease.

Is Offshore Testing Advisable for Your Business?

It is a sheer competency to handle the entire testing process from a location that is far away from the actual business site. Offshore testing or remote testing is a testing model where a company or an organization outsources the testing process to a team located in a different country. The doubt that sneaks in mind is offshore testing advisable for businesses? Can the resources, tools, and environment be favorable to carry on offshore testing without any disruption?

The business in the current scenario is reaping high benefits from this testing model, which means there’s something extremely advantageous about this arrangement. Offshore testing is increasing daily due to advancements in innovative technology facilitated by online tools. Offshore testing can be optimized with right software testing suite, skilled and expert testing team working remotely in highly competent and convertible environment.

Let us look at the benefits of Offshore testing team,

  1. Deploying a testing team at the business site will need organizations to make necessary arrangements. It requires organizations to set up an infrastructure suitable for testing projects, arranging a place in the office set up for the testing team, in addition to the obvious ones like travelling and staying arrangements. With the offshore testing model, organizations can take the stress out of the equation as the testing team will execute the end-to-end testing process from a remote location. Hence, Offshore testing is a cost-efficient option for any business.
  2. By outsourcing the testing projects offshore, the management team frees up the resources to focus on other priorities. Resources within the organization may have expertise in other domain areas. By outsourcing the testing projects, the organizations can delegate their team to different domain verticals to build expertise.
  3. The offshore testing model is a leap toward digitalization as the organizations’ core application is tested by other software around the clock.
  4. By outsourcing the testing projects, organizations can save time and focus on other areas of business that require close attention.
  5. Offshore testing expedites the software development process. In an ideal scenario like this, the testing and development process occur simultaneously, allowing the organization to speed up the software development process and leave it with the offshore testing team to do the rest.

How effective an Offshore testing team is?

An organization looks for the potential, experience, and expertise when choosing an offshore testing team. An offshore testing team is also selected based on similar projects they have executed in the past. In an ideal offshore testing model, the team focuses on quality assurance services to determine whether the software meets the predefined requirement. Organizations clearly define the benchmark for the projects, which they share with the offshore team.

The offshore testing team must be competent enough to execute end-to-end testing, including functional and non-functional testing. The testing project is strategically managed by a dedicated Test Centre of Excellence consisting of skilled and proficient test consultants. From test planning and designing to test execution, everything is done at the beginning of project inception to ensure that the offshore testing team achieves success in offering maximum benefits of the testing practices.

The offshore testing team focuses much on integration with the core enterprise applications and tests them at the integration points because it combines the different units, modules, and components of the software as a group to evaluate the specified functional requirements. Offshore testing is an effective process as it aims at achieving the highest benefits for the organization by significantly investing a lesser cost for the testing practice. It allows the testing process to take place in different geographical locations rather than appointing an in-house testing team.

It is important for businesses to transform digitally. It aims at ensuing end user experience with infrastructure, processes, and tools to enable rapid delivery of product value to consumers. The offshore testing occurs at the digital level, which ensures brand consistency across multiple channels and consumer platforms. It focuses on delivering better value quickly and more efficiently. Offshore allows application testing on different device configurations so that newer technologies are being adopted at a much faster pace.

As the development processes are becoming more Agile, testers are adopting the DevOps methodologies to meet the need of shorter and faster development cycles. Offshore testing allows organizations to reduce the turnaround time and improve the speed of release code to production. Offshore testing resources can prove to be efficient and cost effective lowering the expenses approximately by 30%-40% than onsite resources. The process is managed by a team who is expert, skilled, and knowledgeable.

Is Offshore Testing Advisable for Your Business?

In this business world, all organizations do not have enough resources for testing their product, software, etc. In such a case, offshore testing is the best option rather than appointing in-house teams, resources, etc. Sometimes it is challenging for a group of 5-7 testers to manage tests, find out bugs, check duplication and provide code reviews; for all such types of tasks, it is best to do offshore testing by transferring data to other departments located in different countries. An offshore testing team,

  • Provides a pool of expert testers:

A pool of expert testers is the only one who works for the testing project and acquiring test services from an organization with a pool of expert testers is lucky for them. Such testers work on performance testing and provide comprehensive results, which are error-free and give great market hits. An organization should hire an offshore testing company that will provide them with specialist suggestions to make the testing strategy more efficient and effective.

  • Provides quick results:

An organization can get faster results of its testing by acquiring offshore testing services within a fixed period. A specialized company will do testing, and specialized experts in their tasks give quick results with improvements.

  • Is Cost-effective:

In in-house testing, an organization must bear a high cost in appointing expert testers, purchasing software testing tools, paying them salaries, etc. This will be a significant burden on the organizations, especially those who have started their business recently. Offshore testing is the best alternative for them and saves all costs an organization bears in in-house testing.

  • Saves plenty of time:

Offshore testing saves time in two ways. First, the offshore staff uses those instruments and techniques with their experts to make data error-free and work on quality improvement, saving much time. Second, an organization can direct human and production resources to focus on the company’s main activities. So, offshore testing is also the best option for organizations that require quality assurance services.

  • Focus on the development of software products:

In offshore testing, the experts only focus on developing, improving, and focusing on the sales and marketing strategy of a product. When the right people are working on the right domain, the product will be highly beneficial for the marketing concerns and increases sales.

  • Bug free software:

The offshore expert testers are those who guarantee bug-free software. Testing is done by qualified staff who are experts in their work. Along with in-house testing, it is a comprehensive task for the appointed experts because they are not that many experts like the offshore testers.

  • Uninterrupted work cycles:

The offshore work team will consistently work on a particular task uninterruptedly because it is the primary and only task of the offshore experts. In in-house testing, there is the full involvement of the organization managers, workers, directors in their performed tasks, which will result in delayed results and interrupted work cycles.

The benefits of offshore testing are discussed above, which is advisable for businesses also. The decision of offshore testing is in the hands of the company and an organization. A product is more liked by the customers, which qualified experts and all the necessary already test and valuable changes are made at every level of the product. Testing like functional testing, integration testingperformance testingacceptance testing, UI/UX testing, and Daily Regression Test Run can be done in various modules and multi-device configuration led by the expert test engineers.

Why Yethi for offshore testing?

Yethi’s each offshore project is headed by an expert consultant working seamlessly with your onsite team. We can quickly scale capacity to meet the needs of your business. Additionally, by harnessing Time Zone differences, we can jointly create a continuous testing cycle. As soon as your team concludes their working day, the offshore team can continue the workload in a seamless and coordinated manner. Our highly experienced testing & digital consultants understand the processes and technologies involved in digital projects. They possess best practices skills gained from continual training and development as well as real-world experience working with clients across a variety of domains in the Banking and Financial Services space. In today’s challenging environment, the challenges of business continuity can be addressed through offshore testing of the digital platform.

Yethi’s codeless test automation platform, Tenjin, is a plug-and-play banking aware solution, with distinctive features like robotic capabilities to learn the application and re-learn after any updates, so regardless of the complexity and number of updates, the test execution is fast, minimizing manual effort. Tenjin works flawlessly across multiple applications. It is developed with cutting edge technology yet is business user-friendly and requires minimal tech skills to handle the tool. It works seamlessly both in a traditional waterfall model and agile mode. Yethi’s substantial repository of more 8.5 million test cases to test multiple global banking software platforms with ease. Tenjin delivers automation in test portfolios, agility of in-sprint regression testing and up to 35% reduction in cost & cycle time using risk-based testing methodologies.

Conclusion:

Offshore testing is an attractive option as the testing process is conducted by a highly skilled group of testers. Sometimes, it will be challenging for the organization to choose the best offshore testing company from the list of companies. When pricing is the critical factor of the organization, then offshore testing is often considered an advantage. The focus of offshore testing is to provide quality assurance services. It also works well with quantitative testing because it allows you to get data from a large sample size of test participants. In offshore testing data migration support plays a vital role.

Importance of Core & Flexi Delivery Model in BAU testing projects

The BAU model is a continuous working model, but there is no assurance that it will continue to function the way it is expected to be. Let us consider a hypothetical situation like a busy day in a bank or a financial organization when all the systems are up and running. But due to an unprecedented event like force majeure, the system performance is disrupted immediately. You may imagine the loss that the organization must incur. This unanticipated loss damages the company’s reputation, which a company takes a lot of time to recover.

The BAU projects thus require thorough planning at the initial stage of project inception. Business as Usual is a continuous yet challenging model simply because the service providers must address the new requirements with the existing ones and create a model that meets the concurrent business model. In addition to this, it must also look upon the business operation and ensure system functionalities as they form the backbone of any organization.

What is Business as Usual (BAU) and why it is important to test BAU projects?

If we can put it in a simple language, an organization performs various operational activities daily. They follow a strategic routine work in a competitive work environment. The continuous flow of operational activities to maintain business continuity is critical. This is known as Business as Usual or (BAU).

A question may be extremely pertinent here, if an organization performs regular operational activities diligently, it must have gained mastery in the field, then why there is a need for testing the BAU projects. Let us not negate the fact even if the organizations are performing the operational activities regularly, the systems and the workforce are prone to errors. By testing Business as Usual, we focus on improving the efficiency and coverage and reducing effort, which lowers the operational expenses that may follow without a proper disaster management system.

Ensuring the system quality is directly proportionate to ensuring the quality of your BAU model. Quality Assurance (QA) services play a predominant role in ensuring system quality. An adequate BAU testing methodology is an answer to this. The right BAU testing methodology is a 5-step process, which includes analyzing, mapping, executing, retesting and reporting, enhancing and maintaining a regression pack. One critical aspect of end-to-end BAU testing is periodic regression runs. Running regression tests periodically helps in patch fixes, ad hoc fixes and improves enhancements.

BAU functional testing is critical as it confirms the functional quality of the system. BAU functional testing is inclusive of but not limited to system integration testinguser acceptance testing, and UI/UX testing. A massive part of BAU functional testing includes a thorough analysis of system functionality through regression testing. BAU functional testing methodology includes creating regression test cases, analyzing the regression impact, mapping the impacted regression test cases, executing the impacted regression test cases, defect logging and tracking, and finally adding the test cases to the regression pack for the patch fixes and enhancements.

The functionality of BAU can be checked using various techniques and the defects or loopholes in it can be restricted without much hard work. Starting from functional BAU testingwhich is performed to confirm the functionality of the system, to make sure that it provides the required output, to where the different issues are identified in the application when being tested and are tracked throughout so that it can be evaluated at later stage.

The functional support and testing in BAU projects are necessary as it ensures that there will be a quarter-to-quarter improvement and growth during each stage of release. The growth in the BAU projects can be tracked when there is a reduction in effort, improvement in efficiency, and an increase in test coverage. A combination of all these leads to cost-efficient operational activities.

Why we need Core and Flexi Delivery model in BAU testing projects

Let us consider a Core team with X number of resources. The Core team is formed of X number of resources and is present during all the quarters of release testing. The Flexi team, however, keeps changing and is available only at the time when there is quarterly review planning. The Core team has definite resources and is allocated as per the project requirements. The Flexi team is also based on requirements, but it keeps changing based on project review requirements and resource allocations.

The concept of the Core delivery model in BAU testing is the allocation of X number of resources in all the quarters of release testing. In the Core delivery model, SMEs are allocated who ensure that the core platforms are tested for the system functionalities. They ensure that the systems are all set to release without zero functionality errors and are ready to support the business continuity plan and requirements.

The Flexi team, however, review the system quality each quarter to make sure that the systems meet business and industry standards. In the Core & Flexi delivery model for BAU testing projects, it is important to have the eligible consultants who meet the tier requirement and are ready to achieve the benchmark set by the organizations.

Following are a few of the reasons why Core and Flexi delivery model is important in BAU testing projects,

  • Addressing both company, client and employee needs: In BAU projects Core & Flexi delivery can manage cost and control offerings. It can help to address the unique preferences described by the client. Hence, it will empower the services of the organization and give the employee a positive impact. 
  • People allocation based on knowledge and expertise: Core and Flexi programs can help each employee to maximize their needs by cutting down unwanted services. Also, spending higher on the more important services can introduce Core and Flexi delivery. Hence, it will not only motivate the employee to work more but also help them to keep their needs checked.
  • Control on costs: Implementing Core & Flexi services will allow companies to maintain the variety of their services and increase the scope. As the guidelines & parameters provided beforehand it can control the delivery chain and its costs. It can control expenses and minimize the wastage of resources.
  • Reduction in exceptions & exclusions: As the development of guided flexibility has been made while building the program, the requirement of exceptions will be minimal to none. Also, Core/ Flexi delivery can help the mobility managers to address potential barriers and remove them as per requirement.
  • Flexible delivery: Often, the requirements may change during the delivery time. So, analyzing the requirements and outcome, Core & Flexi delivery can help BAU projects to adjust during the delivery.  Hence, the project can be delivered by satisfying all the client’s needs.
  • Flexible updates: Testing team will give their analysis on integration testing and system testing. The testing team will further conduct Acceptance testing and UI/ UX Testing, testing on regression test cases. After that, every change and update will be treated as separate projects and will be updated flexibly for Patch fixes. Adhoc fixes can be also updated as per requirements.

In brief, Core & Flexi delivery is the way to provide flexibility during the administration, design, and delivery of a BAU project. It also can help companies and organizations to enhance their talents by considering the unique needs of the client.

Conclusion:

System validation is a critical step in Business as Usual (BAU) projects. It follows a continuous cycle of requirement analysis, test cases design, test case execution, defect logging and retest, execution sign off, and regression test pack maintenance.

Business as Usual focuses on cost-saving and time-saving theories. Businesses can save both time and money by automating regression testing. They can implement automated testing for creating, executing, and maintaining regression packs. Automating regression cycles supports the patch set releases.

The Core & Flexi delivery model offers a smooth business experience. It also helps organizations to allocate technical experts based on the project requirements. The Core and Flexi delivery model helps in smooth product release always, ensuring the quality of the business model.

At Yethi, we envision a new way of offering QA services. We reduce the regression test burden by leveraging the best of our 5th generation automation tool, Tenjin. Our flagship test automation tool reduces the time of testing. We offer a Global QMS level transparency and quality by shifting your testing to the far left.

Our managed testing services are based on prediction and prevention optimized through Cognitive Computing. Our Testing Centre of Excellence comprises people from multi-disciplinary who have moved from inside out to outside in. Finally, our test automation tool is agnostic, which means it is highly resilient and takes on the shape based on project requirements.