Improving core banking implementation with viable test automation approach

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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.

Aspects You Might Pay Close Attention While Testing Trade finance

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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.

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.

Test and Test Automation for PSD2 / Open Banking

The flexibility in digital banking as a form of open banking has compelled UK-based banks to share important financial information in a secured and organised way. The open banking concept is designed to transform the way people handle transactions. It is three years since banks in the UK have adapted to digital transformation and Open Banking, but there’s speculation about how secure the transactions would be.

These speculations about the adoption of PSD2 and Open Banking solutions can be put to rest. If organisations must run an Open Banking Solution successfully, they must ensure the following,

  1. API must be tested to ensure that it can handle the failed instances by responding with proper status codes.
  2. Integrated touchpoints are tested to ensure uncovering of the bottlenecks, irrespective of the application and technology complexities.
  3. The input data like customer or account information, deposit data, loan information, transaction details, and real-time process details are accessed through an interface that must be thoroughly validated.
  4. The expected performance load of applications must be validated, which concerns the factors like response time, scalability, downtime, and infrastructure costs. It ensures that the system’s stability and performance provide expected results even during high traffic with optimal resource utilisation.
  5. The banking APIs must be validated so that the application performs with desired results. Authentication is important for ensuring the performance of APIs.
  6. Validation of internal standards for creating audit trails and reporting procedures are must to ensure that the TPP partners have permission to maintain compliance for the API integrations of the financial institutions.

Beyond these speculations and apprehensions, there are opportunities to explore.

What is Open Banking?

Through open banking, the consumers, financial institutions, and third-party service providers can access and control customer information, financial records and transaction data from the banks and non-banking financial institutions using application programming interfaces (APIs). The concept of open banking is redefining the BFSI industry and customer experience.

Even though consumers are a little apprehensive about sharing a massive amount of data in an open platform through APIs, due to a couple of things going wrong, the fact that open banking has the potential to enhance the consumer experience is definite. However, customers must allow banks to access and control their personal and financial data by signing the terms and conditions of sharing the details with the third-party service providers.

Features of Open Banking:

  • Cash transactions are easy and convenient for the customers
  • Transferring cash to several accounts, or credit cards is faster using open banking
  • Checking the account balance of multiple banks on one platform
  • Calculates saving and expenses automatically based on user’s transactional behaviour
  • Combining all information of bank accounts and credit cards into a unified statement
  • Better money management using an AI personal financial assistant
  • Suggestions on saving for bills and insurance
  • Access to bank information for calculation of accurate credit score
  • Approval on loans and investment on a uniform platform

What is PSD2 and why is it now an integral part of open banking?

PSD2 Open Banking regulation implemented by the European Union. It is a regulatory directive initiated by the European Banking Association (EBA) and applies to European Union markets. The purpose of PSD2 is to make the payments and transactions easy, and banks must grant the rights to their customers to choose their payment partners to simplify the payment and transaction processes.

As PSD2 and open banking regulations have evolved to complement each other, and accordingly, open banking must also be compliant with all PSD2 directives. Open banking has now improved its scope by covering all payment products of PSD2 like Credit Cards, Debit Cards, e-Wallets, and more. Payments are likely to be fast and convenient through open banking solutions.

PSD2 and open banking serve as a uniform platform, eliminating various intermediaries such as merchant payment, payment gateway, Visa / MasterCard, issuing bank, acquiring bank, and others.

Features of PSD2:

  • Opens access to payment information for third-party payment service providers
  • PSD2 simplifies liability issues between the user bank and the third-party service
  • The PSD2 improves consumer protection
  • It eliminates the need for additional charges on payment methods
  • PSD2 ensures strict protection of consumers’ financial data by meeting security requirements for electronic payments

How do testing and QA work for open banking / PSD2?

To access open banking, banks must create open APIs, which must comply with regulatory standards, security protocols, safe data transfer, compliance with all the directives, and more. With these and many more prospects, Open banking needs regulatory testing, penetration testing, integration testing, performance testing, and security testing to ensure end-to-end platform security.

As customers access and transfer sensitive information and data simultaneously via open banking, the platform requires API, accessibility, and more testing to ensure that the platform is up and running without any technical glitches.

As open banking continues to grow and all financial institutions operating in Europe and UK must conform to Open Banking standards, it would require the testing team to ensure that the APIs and the platforms perform without disruption. They would seek expert QA professionals with extensive knowledge of open banking landscapes. The number of financial institutions is growing globally, which eventually may have to comply with Open Banking/PSD2. There is a greater possibility and opportunity to expand QA solutions far and wide.

Yethi’s role as QA testing partner for Open Banking / PSD2

Yethi is a reliable manual, and automation testing partner focused on the banking, financial and insurance sectors. We offer functionalnon-functional and test advisory services including acceptance, regression, integration, performance, vulnerability assessment and penetration testing, and data migration. We have a well-managed Test Centre of Excellence by expert consultants who also offer tailored business process engineering.

An automated API provides intelligent, reliant, and seamless API testing to reduce testing costs and test-cycle time. Yethi no-code software automation testing solution, Tenjin is PSD2 and Open Banking ready. Its Oauth2 can work with the security and authentication standards currently in place. With its ease of use, Tenjin can test across your internal or on the sandbox environment. With multiple upstream and downstream integration points, Tenjin is ready for REST API.

Tenjin is built to be programming free and allows the functional testing teams and the system developers to test applications, making Functional, UI / UX testing, API testing and UI based business process testing easy and hassle-free. Our 5th generation codeless automation testing tools automate testing at the API level, enabling granular and faster test cycles in a multi-system environment; thereby facilitating early test adoption in today’s agile world.

Tenjin is an advanced automation suite, which can streamline API-level testing needs by rapidly switching between API and the GUI. We provide comprehensive regression testing in integrated environments to ensure a balance solution of agility and practicality.

Performance Testing in Agile Environment

Performance testing is a critical part of any testing strategy as it indicates the maximum user load the system can process, thereby, helping to mitigate the associated risks. It won’t be wrong to state that good performance of the application alone can help you stand out in the market. With the increasing focus on performance, organizations are moving their testing strategy from traditional approach to agile methodologies for creating successful products.

Conducting performance testing in an agile environment has its own benefits. Agile environment improves the application performance testing by executing tests on continuous integration and continuous delivery simultaneously, which is otherwise difficult with the conventional approach. It helps organizations develop higher quality software in less time while reducing the cost of development.

What Is Performance Testing? The Need to Test It in Agile Environment

With the increasing trend of digitization, the use of websites and mobile apps is increasing. Popular apps and websites like Netflix, Google Pay, etc., have millions of users all at the same time. The load created during the peak traffic period is immense; in case, the system fails to keep up the load, it can disrupt the business. To ensure that business continuity is uninterrupted while offering a seamless customer experience, even during unrealistic traffic, performance testing is conducted. Performance testing creates reliable software applications with great speed, stability, scalability, and responsiveness. It is one of the important criteria directly related to the user experience.

Organizations are adapting to creating new software in agile environment to improve the process, promote change, and embrace innovation. The agile environment offers a flexible space for the organizations to improve the process by emphasizing on the working software, developer/testers, customer collaboration, and responding to the changes. When performance testing is carried with the agile approach, it helps to deliver quicker results with better ROI.

The prime approach of using performance testing in an agile environment can be understood by considering the complete software development project. Moreover, the automation test scripts to run performance testing lets the organizations develop high-quality software in a lesser time frame with reduced developmental cost. It mainly focuses on testing the performance in the early stage of development and testing. Looking at the advantages offered by performance testing in an agile environment, performance testing gets consideration in the complete agile SDLC process. It also helps in testing the application behavior under heavy load.

Critical Considerations for Running Performance Testing in Agile Environment

When conducting performance testing using agile testing methodology, the application testing is conducted in smaller cycles. As a result of this trend, with every iteration, the application gets better than the previous release. The process is streamlined and also allows making any further change or addition of new requirements anytime. Key considerations include:

  • Having a clear vision of the expected result is critical. Having a clear context set for the project will help you determine the further requirements such as building architecture, implementing new features, setting the timeline, and determining the scope of performance testing
  • Determining the reason for performance testing by observing the trends in resource usage, checking threshold, responsiveness, and collating the data to plan for the required scalability
  • Creating a strategy to incorporate performance testing value additions like integrating external resources, emphasizing on the concerned areas, checking the load range etc.
  • Deciding the tools and resources to be used for syncing up with the test environment
  • Identifying and executing the tasks are of highest priority criteria to decide the performance of the system
  • Another important consideration involves creating and analyzing the report to check if the outcomes are as expected

Resolving Performance Issues in Agile Environment

To get maximum efficiency under an agile environment, one should identify and resolve the performance issues in the base code to avoid further bottlenecks. There are three stages to consider while resolving performance issues:

  • Optimization: Tests should be implemented at the base level to avoid issues at a later stage
  • Component Testing: It removes defects at the application component level
  • App Flow Testing: It helps to test app flows that determine the UX consistency for varying loads

Different Factors That Affect Performance Testing Within Agile Environment

A performance tester gets involved from the beginning of the sprint so that quality products can get assured by the end of the development cycle, and delivery within the estimated timeline. Below are the different factors affecting the performance testing process:

  • Non-availability of trained resources for critical projects
  • Unavailability of flexible tools for performance testing
  • No prioritization of performance testing to take care of performance defects
  • Performance testing criteria might not be planned for every sprint in the case of some agile projects

Advantages of using Performance testing in Agile Environment

Performance testing in agile Environment has proved to be helpful for all organizations; its benefits include:

Capacity Management: It helps determine if the current hardware can handle a specific amount of traffic by identifying the capacity and size of the server required. It also helps in saving the investments made on private Cloud.

Testing Speed: It can be determined by mimicking the multiple scenarios and then testing the reactions of all those paths under different situations. In this way, all the significant flows and the user journeys can get tested for an application, even the unknown cases.

Increased Team Efficiency: Agile follows detailed planning and documentation, which can help in making the development process efficient and faster. It also helps in fixing the issues at a very early stage during development.

Competitive Advantage: These days, the end-users have a low tolerance for performance issues and bugs. Performance testing proves to be helpful in having a higher retention rate and demonstrating the company’s competitive advantage.

Yethi’s Performance Testing to Offer Seamless Experience

Yethi is a QA service provider to banks and financial institutions across the world. Highlighting Yethi’s performance testing process, our test automation tool, Tenjin, conducts the test efficiently to eliminate any performance issues and ensures that the application works at its best. It monitors and handles the test to check the response time, speed, scalability, and resource usage under the standard workload, thereby, creating a robust and scalable system that works without any disruption.

Yethi has helped several global banking/financial institutions with an easy and efficient test automation solution. Our revolutionary solution has changed the course of test automation by providing nearly 100% accuracy.

How does test automation vary between development and acceptance in BFSI industry?

Test automation has transformed the core software system of organizations with a better and smarter workflow approach. The improved test automation helps to optimize the entire process, thereby, eliminating any operational gaps and offering a greater level of customer satisfaction. Test automation plays an integral part in the highly complex banking and financial sector where the process involves extremely sensitive financial data, which offers NO scope for compromise. Being popularly used in banks and financial institutions, test automation helps to reduce time and effort on repetitive jobs and increases the speed of delivery multiple folds when compared to manual testing.

Though test automation has eased the tedious and time-consuming manual software testing, its success depends only on the efficiency of automation tools being used. Adding to the sensitive data-driven and multi-layer workflow of the banking and financial sector, a perfect automation tool is required that will align with the organization’s core software system and deliver favorable outcomes. The test automation requirement varies between the development and acceptance phase in the BFSI industry, let’s discuss it in detail.

Test automation in the software development cycle

Testing in the development phase involves a series of to-and-fro cycles to ensure that the newly developed software is working without any defect. The entire cycle of software development or sub-development phase requires a specifically designed test automation tool to get the software immaculately working. Further, with the introduction of more agile DevOps processes, testing is carried out earlier in the development cycle to ensure the developed software is of higher quality. Additionally, continuous testing process is also introduced to execute the automated tests as a part of the software development pipeline to increase quality and reduce business risks.

Software development cycles in the banking processes involve critical data such as an individual’s financial information, transaction history, and personal details. To safeguard the crucial client data and have a fully functional yet completely secured banking software, it is important to have a strong testing procedure in place.

performance failure, security breach, or a poorly functioning system will lead to loss of potential and prospective clients, eventually incurring a huge financial loss. Organizations need to understand that it’s equally important to invest in high-quality, fully functional test automation tools to give the best service to their clients.

In this era of growing dependency on digital platforms, only a good testing system has the power to make or break your business. Poorly performing testing systems can compromise on the performance and security, leading to highly dissatisfied customers, which can eventually shatter the brand within no time. That’s why, we at Yethi, have introduced an efficient test automation platform for banking and financial businesses to work at their best while offering complete peace of mind to the entire client base. Tenjin, Yethi’s codeless automation tool, has revolutionized test automation in the banking and financial sectors, offering an impeccable system that offers no scope for errors.

Yethi has established itself as a market leader in QA services to the BFSI industry by offering testing solutions to popular banking software including Oracle FLEXCUBE, Infosys Finacle, and TCS BaNCS. Tenjin has created a deep impression in the market for its quick deployment test automation solution that conducts the testing without the need for scripts or codes while offering nearly 100% accuracy.

Test automation for software acceptance

Banking and financial systems are constantly modifying their core software to add new features or upgrade the existing ones to meet the ever-changing demand of the customers. Testing associated with the adding of a new feature to cater to the company/institution’s requirement is defined as acceptance testing.

User acceptance testing forms a vital part of the software development life cycle as it is tested for real-world usage for the intended audience. Otherwise known as UAT (user acceptance testing), it is done when the software has undergone integration testing, unit testing, system testing, and other functional testing aspects. This testing is the final stage of functional testing to check if the final results are accepted by the end-users.

To ease the acceptance testing from a manual approach, test automation tools for acceptance are being used popularly by banks and other financial companies/ institutions. Manual test execution takes time as the test codes are manually written and reviewed by the testers. Such an approach is not suitable for a highly agile working system that is followed by companies today. To keep up with the trend and offer modern solutions to new-age problems, Yethi offers automation for acceptance testing.

At Yethi, we understand how essential it is to decide and use the right automation tool for testing user acceptance of the banking/ financial software. Yethi’s test automation tool, Tenjin, is a codeless platform that is designed to rapidly scan through the software and detect any defects. It improves the application quality by fully investigating the formal expression of your business needs and addressing any operational and infrastructural gaps. Tenjin is one of its kind of tools that can offer testing of banking/financial software with minimal human interference and nearly 100% accuracy.

The future of test automation in banking/ financial software

The next wave of artificial intelligence (AI) and machine learning is already taking over all the technological processes across various industries. The incorporation of these technologies has been a crucial part of the banks and financial companies/ institutions, as the number of account holders is constantly increasing. It becomes important for the banks to consider the need of the current tech-savvy millennials while keeping things simple for the previous generation.

Banks and other financial companies are creating and updating software for online, mobile, and other digital platforms. This increasing number of online users has created a need for an immensely effective software testing solution that will leave no scope for compromise in any aspects of functional usage, performance, or security.

The future of test automation in the BFSI industry looks quite promising with the growing usage of digital platforms. The sector has already seen the integration of AI, machine learning, and robotics; however, the future looks different with advanced robotics, augmented reality, and smart machines being used in a common, real-life scenario. The evolving banking/ financial process will further require an advanced testing solution. The future might see robots take over the testing process or a more agile process might come into the picture that might offer impeccable execution. Technology is evolving at a faster rate than we can imagine, so the future will see advancements much beyond our current understanding.

Emerging Trends in Performance Testing

Creating a visually appealing website with seamless functionality is great, but if it crashes easily or fails to work under higher traffic, it can never be a successful one. Hence, performance testing is a crucial parameter when it comes to software testing. It gives a clear picture of how the website/ application is performing in terms of speed, thereby, offering scope to increase its robustness and reliability.

Performance testing is a rapidly developing field and has witnessed enormous advancements, especially in the recent years. Teams are trying to move to quicker, cheaper, agile, and more accessible methods to improve the performance testing process.

Like the previous years, this year too will witness new trends in performance testing that will enable more responsive development in shorter spans with fewer risks factors. The emerging trends in performance testing are discussed here in detail.

Latest trends in performance testing

The new trends in performance testing are still at a nascent phase and will make their presence in the market much sooner than we anticipate. Here are some of the popular testing trends that will transform software QA in the near future.

Artificial Intelligence

The use of Artificial Intelligence (AI) in performance testing for websites and apps is not new. AI automation is slowly making its presence as a go-to option for testing and QA teams at every stage of performance testing.

The use of artificial intelligence in performance testing for websites and applications is expected to grow further in the upcoming years and become a significant trend of all time.

Internet Of Things Testing Market

The Internet of Things (IoT) has seen rapid growth in the last few years, and this growth is expected to continue in the future too at a larger scale. This means that there will be millions of devices operating in various unique environments. Testers will face new challenges to ensure that the testing cycle, performance, and security aren’t compromised. To mitigate these risks, testers will have to adopt an IoT-focused approach, leading to the rise of Cloud-based and IoT testing environments.

Cloud-based Testing

Cloud computing services are becoming popular for functional and non-functional software testing. There are a plethora of benefits of using Cloud-based tools for performance testing. Some of them are:

  • High Scalability: With a Cloud-based platform, unlimited users can carry out performance testing simultaneously.
  • Low Cost: It allows on-demand resource provisioning for performance testing for websites and software without the need of building infrastructure, thereby, helping reduce performance testing costs.
  • Supports Production Environment Testing: Generally, traditional, older tools allow performance testing only in the test environment. However, with Cloud-based tools for performance testing, the testing can be carried out in the production environment as well.

Open-source Tools for Performance Testing

Open-source tools promote collaboration by giving testers the ability to view and edit the source code. This leads to the team working efficiently and helps create a better product while reducing the production cycle time. Additionally, they also provide an easy learning platform for new testers. No doubt that open-source performance testing tools have become quite popular in the testing community and will remain an integral part of it.

DevOps

DevOps is a collaborative approach combining Development (Dev) and IT Operations (Ops). It involves all the stakeholders in the software development process until the product is delivered to the client. DevOps aims to reduce the software development life cycle while delivering high-quality end-products to the client. To accomplish this, DevOps involves a highly interconnected, collaborative, and agile approach. Looking forward, DevOps seems to be the go-to approach for many organizations due to the various benefits it delivers.

Production Testing

Another emerging trend in performance testing is testing the software or website in the production environment. Generally, performance testing is done in the development, staging, and pre-production environments. However, in production testing, the new code changes are tested on live user traffic on the production software itself.

Production testing allows only a small set of users to be exposed to the software. The testing team then carries out performance testing for websites or applications and rolls out new features to check user responses. They can verify whether the software or website works as intended or not. Some of the techniques used for production testing include:

  • A/B testing: Testers can compare two versions/features at the same time to see which one provides a better user experience.
  • Blue-Green deployment: It involves running two production environments that are as identical as possible. It helps reduce downtime and risks as it enables gradual and safe transfer of user traffic from a previous version of the app or software to the new one.
  • Security Testing: Data threats and attacks have increased in the last few years, resulting in tangible and intangible losses for every party involved. Thus, every stakeholder, including businesses, has realized the importance of data safety. Testing teams, too, have prioritized security testing in performance testing to avoid any undesired instances. The threats are expected to only increase as we steadily move to a more interconnected world. That is why software testing teams must become competent to detect and neutralize threats at the earliest.

Behavior-driven development

Behavior-driven development (BDD) is an agile approach that encourages collaboration with shared tools and processes to create a mutual understanding between testers on how the end-product will behave. In BDD, the testing team needs to build test cases based on user behavior and interactions to create a high-quality end-product. BDD is expected to gain further prominence as AI goes mainstream in performance testing.

These are the top emerging trends in performance testing that one should watch out for in the next few years. However, given the unprecedented changes, we might see the addition of these new trends much sooner in the future. Similarly, some of the emerging trends may vanish before they become mainstream due to various challenges in implementing them on a larger scale. Businesses, testers, and individuals will need to keep themselves updated about new developments in the industry to stay ahead of the curve.

Why choose Yethi for performance testing?

Yethi is a niche QA service provider for global banks and financial institutions that offers efficient end-to-end testing. Our flagship, Tenjin, is a codeless test automation platform that can carry out all aspects of functional and non-function testing with nearly 100% accuracy. Tenjin executes high-level performance testing to identify the responsiveness, availability, and scalability of the system. It performs multiple rounds of tests to check the consistency of the system. Our aim is to ensure that your application performs at its best even during increased, load, stress, and volume.

Resolving Quality Issues Across DevOps Pipeline

DevOps has transformed the process of software development and testing. It is a multidisciplinary approach that brings together the development and operation departments together. This strategy leads to a cultural shift where professionals from both groups work together, thus, leading to better synergy, usage of automation across the board, and more flexibility. DevOps strategies lead to streamlining multiple processes, reducing errors, and building a faster and more successful deployment process.

The smooth collaboration between the development and the operations team offered by DevOps promotes quicker product delivery. Here, testing is performed alongside the development giving scope to identify bugs earlier in the product development cycle. This approach expands the scope of software testing and reduces the occurrence of bugs significantly.

6 Quality issues with DevOps and how to solve them

Performance Issues

Practicing continuous integration and deployment tends to make processes in any industry faster. However, sometimes a team’s performance could be slower with continuous deployment than with manual work.

Solution: DevOps team should analyze if their processes are efficient enough. Although automated processes are faster than manual ones, they still need to be analyzed to choose the right tool that will help them to meet their business goals.

Users should check if all the steps in their DevOps processes are necessary. Removing unnecessary steps is an excellent way to reduce complications and get consistent results. User metrics also helps to analyze the stages of the process, such as how much time each task takes. When analyzing metrics, it is recommended that the team figures out the maximum capacity. Some tools may not work fast enough, so they need to be replaced with upgraded technology.

Security Issues

Sometimes development teams could take shortcuts due to a production rush, either due to an extended holiday period or a huge deal. This could lead to a compromise of the system’s security. Huge incidents could lead to loss of billions of dollars and potential bankruptcy, and also affect the brand reputation adversely.

Solution: The team should maintain consistent security hygiene. This includes keeping access to vital tools for CI (Continuous Integration) and CD (Continuous Deployment) secure. Highly secure passwords are still the safest bet.

Contrary to popular belief, CI/CD jobs should be executed with the fewest number of privileges, not the most. If a hacker reconfigures a system that has more permissions than necessary, it could break the production cycle. When the system has been reset to safety, plenty of data could be hacked and stolen, leading to losses to intellectual and monetary property.

Separate Tools Set for Development and Operations Teams

One of the biggest challenges is the implementation of different sets of tools for both the development and operations teams. Identifying and synchronizing the differences between the two teams is vital for running a business smoothly.

Solution: Better collaboration would lead to increased productivity for the DevOps teams. Teams should strive to work towards a unified goal and be trained to understand how to achieve them.

A complete set of instructions and better communication would guarantee the best results. Data could be tested to see if the team has successfully deployed understanding the business problems, training tests, and work schedule maintenance.

Version Control Management Issues

The CI & CD processes are created specifically, keeping the company’s goal in mind. But sometimes, the software undergoes a major update, especially at the time of deployment, and everything could crash, or an urgent task could completely stall. 

Solution: One solution could be to disable auto-updates so that any impediments do not arise in the work schedule. The team must prioritize stability over the newest release date. During deployment, it is a better option to use the stable version of the software rather than the latest one.

In addition, we believe there should be a DevOps team that can be responsible for version control. They could maintain a record of newer versions and features and check to see if they can still support previous systems.

However, not updating the software for a long time can leave the DevOps team vulnerable to viruses in the system as well as outdated technology. While newer updates need to be analyzed, they should not be avoided and put to good use when necessary.

Regular Testing

If testing software is not well-strategized, or a wrong approach is taken to it, it can lead to problems in production and distribution.

Solution: Developers must take test results as seriously as possible. Sometimes, assumptions are made that some minor glitches during testing would not appear in real-time, but the company would have to pay a heavy price if something goes wrong.

Developers should deploy approval procedures for new features to prevent software with bugs from being deployed. They should also focus on writing automation and unit tests. Experts have suggested that as a bare minimum, DevOps should ensure that there are UI and API automated tests.

Finally, developers should test their optimizations regularly. Initial iterations could be lighter and faster to deploy. However, as one keeps adding more code, each optimization could become more complex and bring lesser value. Developers should approach it carefully, as the gains derived from optimization may not match up to the constant investments made to upgrade it.

Resistance to Change

Sometimes the organization may feel resistant to the idea of shifting to a DevOps setup. Proposing that the change is necessary may not go well with certain team members, who think that it reflects poorly on their current efforts.

Solution: Like any significant change, DevOps’ change would be gradual and not happen overnight. When employees are shown the importance of DevOps and given different essential roles that contribute to the development process, the DevOps culture becomes more ingrained.

Teams must find a product or existing application and replicate its performance in a DevOps setup. If employees can see the benefits, they are more likely to adopt the changes to employ the DevOps strategies.

Conclusion

In conclusion, we would say that while the DevOps pipeline can bring certain limitations, those changes are manageable and can help an organization soar to amazing heights post its implementation.

Performance Testing: How this helps the BFSI industry?

Performance testing is a crucial part of the QA process which is directly associated with customer satisfaction. Imagine a pay-day, banks are busy dealing with salary accounts of not just an individual, but accounts of employees from multiple companies, along with offering services to other esteemed customers. The load created on the system is immense; if the bank system, by any chance, fails to keep up the load, it can disrupt the business.

Let us take one more instance, you are in the middle of online payment and the speed of the page reduces drastically, or you have initiated a payment but failed to receive a confirmation due to an unresponsive page. Such scenarios will not just lead to the loss of customers, but also impact the business continuity plan and strategies, eventually affecting the reputation of the company.

Performance testing will ensure on creating reliable application with speed, scalability, and responsiveness. It does not concern only about the features and functionality supported by the application but always aims at eliminating the performance bottlenecks.

What is performance testing?

Performance testing is a non-functional testing technique that checks for the speed, stability, scalability, and responsiveness of software, application, or device. It forms a significant part of the software development lifecycle (SDLC) and focuses on identifying and removing the performance challenges in the software application.

Challenges associated with performance testing:

  • The major challenge lies in data set up and management for the large volume of data with repeated tests
  • The inefficiency of the wrong performance testing tools
  • Lack of proper test strategy to identify the correct type of test run, like LOAD, STRESS,  or SOAK
  • Complete test coverage with time and budget constraints
  • Lack of knowledge to monitor the activity to identify the performance issues
  • Improper analysis of performance test outcomes
  • Difficulty in conducting tests on production environment
  • Developing an efficient background process that runs on the live environment and can affect performance

An adequately working application will keep the existing customers happy, attract new customers, and create improved business models for better business returns.

How to overcome the performance testing challenges

To overcome the challenges associated with the performance of an application or device, it is important to have the perfect strategy in place to detect load simulation and measurement; thereby, eliminating any issues that may crash the system under load.

  • Design a planned end-to-end, comprehensive strategy to carry out performance testing
  • Choose the right performance testing tools based on the criteria of the application technology stack, application communication protocol, performance tester’s skill level, and tool’s licensing cost
  • When conducting performance testing make sure to perform testing of the web servers, databases, app servers, Load Balancer, network, IIS server, and third-party apps
  • Create and maintain a consistent test environment
  • DevOps optimization for automation and integration of performance testing

Significance of performance testing in the BFSI industry

Website crashing during heavy traffic is something commonly experienced; a poorly performing website/application means loss of potential and prospective clients. The high intensity, data-driven BFSI industry which deals with critical data of the clients offers no scope for compromise on the performance of the user page. Any kind of poor performance can lead to dissatisfied customers which will, in turn, affect the business as a whole.

With an immense increase in the number of people using digital platforms for banking/ financial transactions, it requires the banks and financial institutions to have a fully functional system in place that will offer a seamless customer experience. Banks have to make sure that the sensitive actions of money transactions, bill payments, financial management, loan application, etc should work adequately even during peak hours. On failing to do so, the banks/ financial institutions will experience huge financial loss, customer loss, and may also face certain legal issues.

The procedure and tools for performance testing in banks and financial institutions are transforming at a rapid pace. The change is brought in by the ever-changing customer behavior which has witnessed a change from traditional banking and online banking to banking on mobiles, tablets, and wearable devices. The financial sector needs strong performance testing in place, which needs to be updated often, to keep up and running.

How performance testing helps the banking/ financial sector:

  • Greater customer experience
  • Resolve any potential issues before the application reaches the market
  • Identify and solve issues related to database and API (Application Programming Interface)
  • Improve application engagement and robustness
  • Improved speed and scalability
  • Build responsiveness of an application

Types of performance testing

Here’s the list of common types of performance testing carried out by banks and financial institutions to ensure the best performance of the software/ application.

Load testing: Load testing is the process of checking the ability of the application to perform under higher user loads. The performance issues are identified before the application goes live.

Stress testing: Stress testing is conducted to identify the breaking point of an application. This kind of testing involves testing an application or software under extreme workloads to check how it handles the high traffic hours.

Endurance testing: Endurance testing is conducted to ensure the software/application can handle the peak load over a long period of time.

Spike testing: Spike testing is conducted to test the software/ application behavior during a sudden spike in the number of users.

Volume testing: Volume testing is conducted to check the application behavior during varying loads of volume. Here, large volumes of the different databases are monitored and tested.

Scalability testing: Scalability testing is conducted to test how well the application scales during high traffic.

Yethi’s uninterrupted performance testing

Yethi is a QA service provider to banks and financial institutions across the world. Talking about performance testing, Yethi’s test automation tool, Tenjin, conducts the test efficiently to eliminate any performance issues and ensures that the application works at its best. It monitors and handles the test to check the response time, speed, scalability, and resource usage under the standard workload, thereby, creating a robust and scalable system that works without any disruption.

Yethi has helped several global banking/financial institutions with an easy and efficient test automation solution. We have introduced our revolutionary solution that has changed the course of test automation by providing nearly 100% accuracy.

Cards for corporates: Are banks doing enough to innovate? Why user experience is still nascent?

Cards for Corporate

Globalization is rapidly increasing and connecting the world economies as one. This growth has led to an increase in global business travelers like never before. To ease the expense management for companies and add convenience to the business travelers, corporate cards were introduced. Employees no longer have to spend out of their pockets for official expenses and wait endlessly for reimbursement. Corporate cards offer the freedom to handle authorized business expenses and allow employees to deal with official expenditures directly from the company’s account.

For corporate cards to work effectively, it requires a strong testing process to support the software development activity. Since the process involves sensitive data like money, card number, customer details, and company details, there is no scope for compromise on the quality of testing. Card testing is a critical process that needs to be carried out accurately and securely while maintaining all compliances.

Are banks doing enough to innovate the card payments?

Banks have seen a transformative change in terms of card innovation. The increasing competition between fintechs and other financial institutions have led to innovation in the banking sector. This came as a plan to attract new customers and retain the existing ones.

The payments are getting more flexible, encrypted, regulated, and secured which is making them increasingly ubiquitous and transforming the customer experience. The trend of payments is moving towards real-time transactions and utilizing advanced technologies like Cloud, AI, ML, and digital payments.

The recent innovations in banking/ finance:

  • Emphasis on digital approach
  • Supporting e-channels, e-wallets, and third-party providers
  • Real-time payment options
  • Geography-specific needs catered
  • World language supported
  • AI and machine learning integrated transformations
  • Approach to embrace the flexible Fintech business models

Even with the growing innovation, some unaddressed challenges by the banks/ financial institutions hinder their growth; they include:

  • Increasing competition by the fintech companies
  • Investigate peer-to-peer lending option
  • Noncard lending options
  • Unmet consumer demands
  • Lack of personalization in customer engagement
  • Slower adoption of new technology

The banking process aims to streamline and address all the challenges that lie ahead of a better user experience.

Why user experience is still nascent?

Today’s disruptive technology has made enormous changes in the way we use cards. Cards have evolved over the years; started with introduction of money withdrawal at the ATMs, swiping at merchant machines, and using it for online payments. Further, the introduction of corporate credit cards had been a big hit, offering ease of expense management among the companies.

Even with the greater options and flexibility the corporate cards offer, user experience still remains nascent. The reason user experience has not seen a steep growth is due to the lack of brand awareness, not meeting the customer demands, and not using cutting-edge technology.

Scope for improvements in corporate cards

  • Corporate cards are primarily used by companies for expense management, but it is important for the employees also to keep a track of their expenditure and check if they are spending within the specified limit. Such tracking needs a real-time, efficient app that works flawlessly to update the debits instantly, send notifications, and track the daily/weekly/monthly expenses. The user experience can, further, be enhanced with a responsive user design and efficient navigation system.

  • A greater customer experience can be achieved with an omnichannel transaction solution. Omnichannel payments refer to the mode of payments in multiple ways; for example, making payment using phone, web, merchant machine, or third-party payment apps. Though there has been a significant growth in providing omnichannel payments, there is a need to expand the payment options for the corporate cards to offer great convenience to the users.

  • To offer a great experience for card users, it is essential to incorporate the right UI UX practices. Only a responsive design and seamless user experience will keep the users happy and eventually help to retain them.

  • Credit card budgeting tools are perfect for tracking expenses. These tools connect with the financial accounts and tracks the transaction through an app. Emphasis should be made on creating credit card budgeting tools with great design and seamless user experience.

Why is card testing critical? What are the parameters involved?

The success of a corporate credit card lies in the accurate credit card testing process conducted during and after the development process. Without proper testing, the process would be chaotic providing inconvenience to the employees and incurring a huge loss to the company. The testing of cards involves various important steps to ensure that it works even under high loads without performance failure.

Key points involved in card testing:

  • The card should be tested to offer flexibility to work online as well as offline
  • Card testing ensures that the card works efficiently with the sales machine even during the offline payment
  • The testing should ensure that the payments are done instantly
  • It should effortlessly pass the payment confirmation message testing
  • Testing to check if the funds are properly received in the merchant account
  • Card testing must ensure that the payment confirmation is received
  • Testing should make sure that the payments are encrypted and secured

Corporate cards are evolving and transforming business objectives while offering better security and simplifying the payment options. Furthermore, the rewards, deals, and perks offered by the card companies are initiatives to attract more business owners, making it benefit mutually.

Since the process involves sensitive data like money, card number, customer details, and company details, the critical development process of card software need a well-planned, accurate, secure, and strong software testing process.

Why Yethi for credit card testing?

Credit card testing is an elaborate process involving functionality validation, functionality testingnon-functional testing, testing the performance, testing the changes and configuration, and reviewing the test reports. Yethi’s 300+ domain specialists have developed test strategy and business scenario/ test case review for corporate credit cards, for the esteemed clients.

Yethi is a niche QA servicer provider for global banking and financial companies. Yethi’s flagship product, Tenjin, is diminishing the operational gaps across key business areas of the BFSI industry. This simple plug-in platform is process-driven and offers seamless end-to-end testing. It delivers better software performing at a faster rate with nearly 100% accuracy. Our half-a-million test case repository for card testing comprises end-to-end test case scenarios for credit card payment through POS application and test the important details of cards like card number, expiry date, CVV number, AVS code, encryption, authorization, and settlement, and more helping you to fast track your product within your budget constraint.