Importance of test code quality in continuous testing of financial applications

The global pandemic (2020-2021) had led to unanticipated issues such as economic crisis and credit risk. The upcoming years looked uncertain while facing a critical time. To protect from the economic fallout, the leading business entrepreneurs focused on finding out possible solutions that they thought would help them in stabilizing business continuity and serving their customers better.

One of the Gartner’s Business Continuity Survey reveals that as less as 12 per cent of organizations were prepared to combat the effect of a deadly catastrophe like coronavirus. Amidst the threat of spreading COVID-19, the leading financial institutions considered evaluating their business continuity plans and pandemic planning initiatives to ensure they put safety and efficiency first.

Banking and financial institutions considered agile methodology to adapt to the changing global scenario. The unforeseen event urged the BFSI sectors to reflect on their fundamental practices and how prepared were they for the future. The impact of the pandemic was so widespread that banks faced a weak investment return leading to future credit risks and economic uncertainties. Reportedly, the European banks collectively have experienced an estimated credit loss of an average of €700m in Q1 2020. Meanwhile, in the US three popular banks informed that they noticed a significant credit loss of $25b in Q2 2020.

Current Trend and Opportunities

To prevent the pitfall and evolve from this economic crisis, banks seized available opportunities and prepared their next business module. This catastrophe has urged banks to re-evaluate and analyze their core and non-core assets. Under this scenario, 60% of the banks considered the divestment option, a plan to divest in the next 12 months.

The possibility is likely to play a massive role in understanding the type of organizations banks would like to connect with in the future and how conveniently they can transform their existing process. A growing interest in digitalization is driving banks to adopt digital banking products and solutions to cater to customer requirements. They are taking steps to boost their digital transformation plans.

With a growing threat during a pandemic and different phases of the lockdown being imposed everywhere, financial institutions had adopted remote working policies. It provided an opportunity for the business leaders to reconsider working remotely, operating in the long-term, and consider the monetary impact this approach could have.

This situation enabled many banks to understand their resilience and capabilities. They also reconsidered their cost transformation programs to move in tune with the new challenges of this crisis. The future from here on looks promising and inspiring.

From the online purchase of grocery items to electronic goods, banking and financial institutions, companies introduced promotions, special services, and reward points to re-establish their position in the market. The customers’ purchase behavior was requirement-based, as a product was bought and sold based on bare necessity.

Customers were driven more by emotion during the crisis. Hence, for organizations, brand messaging, tone and purpose became extremely important while connecting with their customers at an emotional level. It helped in establishing customer brand loyalty. Customer purchase behavior depends on four principles, as stated below:

  • As customers remain indecisive, empathy and commitment become two ways to win their trust. During the pandemic, consumers reacted positively to inspiring content that highlighted social, financial, and other real-life aspects.
  • Brands should keep informing their customers about the crisis, how to protect themselves and change in the situation. Customers are likely to trust brands that provide reliable and accurate information about the current situation.
  • Engaging and connecting your customers by facilitating and extending social support are assured ways of improving brand loyalty. Social engagement with customer support and responding instantly during this pandemic have helped build brand loyalty.
  • Offering new schemes, promotions, and offers helps your brands to evolve through endorsement. These efforts have an impact on your customers.

Digital Transformation

Digital banking solutions, which have been brewing for a long time, have accelerated during this unprecedented time. This pandemic situation profoundly changed the behavior of retail and corporate banking clients and facilitated the use of digital banking.

A recent survey done by Ernst and Young, reveals that 62% of consumers said they would use less cash in the future, while 59% will opt for contactless payments. The use of digital services and products propelled more expansion when some of the bank branches were closed, and in response, banks accelerated digital and technology transformation programs.

The small and mid-size companies started adopting digital solutions faster than anticipated. There was an increase of new digital accounts by 2.4 times in the first quarter of 2020 as compared to the first quarter of 2019, and a 49% rise in SME digital loan applications in 2020 as compared to 30% in 2019, in one of the Singapore-based banks.

The concurrent situation has led to massive economic uncertainty, and there is a requirement for the bank to endure this sudden disruption. With a low margin, banks opted for digital tools and focused on sustainable digital enablement that helped them save cost and time. Their motto was, “Grow your business with digital innovations to live up to your customer’s expectations”.

When assessing customers’ requirements, it was observed that a combination of UI and UX of a digital platform contributed to customer satisfaction and experience. Since banking and financial institutions were turning their services online, they needed a platform that could improve the appeal and undisrupted performance.

The following instance supports the claim of how banking is relying on digital and online platforms. In April 2020, Lloyds Banking Group decided to provide a tablet to their 2,000 customers over the age of 70. The objective was to provide training and support to help them access online banking. As banks are now adopting the best digital practices and customer-centric solutions, they form a well-connected digital ecosystem and unique value propositions for their clients. The whole objective shifts to serving their customers better through an outstanding and uninterrupted online banking experience.

Banking has been evolving even before the pandemic swept the entire world. Based on customer requirements and expectations, banks are compelled to leverage digital channels, accounts payments or transfers and online wallets. To avoid the risk of spreading the infection, consumers opted for cashless payments during this pandemic situation. Consumers who did not consider online payment and transactions as options were encouraged to migrate to a digital platform. Since many consumers were not fully familiar with the digital platform, banks have taken it upon them to educate their customers for an outstanding experience.

As the cashless transaction became the new reality of the ongoing situation, banking and financial sectors had to speed up their digital innovation process in response to customer needs by leveraging cross-channel, customer-centric metrics and tracking the success of digital banking. To re-align sales, reduce operational costs, and offer excellent customer experience, data and analytics, AI and automation played a significant role.

A Cost-effective Managed Services

A well-panned managed service can offer operational flexibility and ensure uninterrupted business-continuity plans against unanticipated challenges during the global crisis. With the pace at which the market situation changed, the banks and financial institutions could not afford to hold back the digital revolution for long. Organizations realized that if they suspend their online operational transformation, they will suffer business loss. They understood the competitive edge the change would bring and hence started managing the costs more carefully.

A well-managed service allowed the banks to reduce operating expenses for the long term, and the sudden outburst gave a reason to the bank to adopt managed services. Managed services helped banks to formulate a strong business continuity plan. It is during the time of crisis that managed services helped the banks to maintain the system stability.

The financial instability during this challenging time urged banks to develop strategies to encourage their customer to move online and prove their operational flexibility. With this rapid digital growth, banks were compelled to invest in security, virtual collaboration and cloud infrastructure, analytics, artificial intelligence, and automation. The banks and financial institutions were quick to adopt digital transformation. And the one who did could recover from the economic setback and establish a strong foothold.

Since banking operations largely depend on customer behavior and satisfaction, the banks must face and overcome the challenges of maintaining their standard of customer services, while mitigating operational hurdles.

Current Contact Centers

Digital and mobile banking witnessed a sharp rise during this critical situation, along with the voice channel to serve consumers well. Despite the fully functional digital operation, a few of the banks were operating from branches in different locations. It proved that even if we were relying on a digital platform, we still needed human interventions. We realized the importance of both during a crisis like the current one. AI-driven technology replaced this to achieve the objective. AI could smartly detect the call intention and provide real-time data to the users. This technology helped in reducing call time, and improved efficiency, and customer satisfaction.

Rise of Open Banking Solutions

The situation gave rise to open banking solutions as there has been an 832% increase in open banking during the global lockdown. Banks took more interest in the open banking payment initiative to gain more understanding of their financial situation. Consequently, more and more banks used the opportunity and invested in open banking solutions. The European financial institutions witnessed a steady increase, and globally the organizations were eager to have a different perspective. They did not mind sharing the information on an open platform. A recent report revealed that there was a rise of 20-29% of investments in open banking services for two-thirds of the respondents.

Partnering with FinTech

Banks were simultaneously looking to speed up the digital innovations during the prevailing global situation when the economies across the globe were slowing down. Also, during this pandemic situation, many venture capitalists were restricted from investing in FinTechs. Hence, partnering with FinTech in this situation proved to be economically and mutually beneficial.

Many governments slowly eased rules and regulations in FinTech companies to encourage the growth of innovations and balance out economic disruption. It came as a relief against the long-standing rules, which were once imposed on them.

The current situation provided opportunities for FinTechs to strike a balance between digital transformation while creating a secure financial backbone. As banks and FinTechs together collaborated, it helped them to bridge the funding gap.

As banks were in the earlier stages of digital transformation, partnering with FinTech companies proved to be helpful in terms of improving technological expertise. Banks in collaboration with FinTechs could develop platforms for financial inclusion, analyze transactions and other data for deep insights, capability development and deploy automation for compliance.

Mortgage Refinancing & Payment Deferral

The crisis raised lots of dependability on banks as to how they are addressing their customer’s issues. Due to low-interest rates, there was a steady rise in mortgage refinancing in April and May 2020, resulting in high loan volumes for lenders. As the whole world was suffering because of layoffs, and pay cuts, the homeowners found it to be challenging to pay their instalments on time. This catastrophe has left many customers asking for mortgage deferrals.

Many banks waived fees, increased credit card limits, and granted mortgage payment holidays in response to customers’ inability to keep up the monthly mortgage payments. They made a few adjustments with the short-term and long-term financial changes. Banks provided tailored solutions based on the customer’s requirements by leveraging machine learning, AI and analytics and driving improved engagement.

Managing System Performance and Unexpected Risks through QA

The customers looked for additional support during this crisis in terms of credit facilities from the banks globally. Banks had to be prepared for the upcoming risks and take measures to keep their business and customers protected from the financial debacle, as default and bad loan cases were expected to rise in numbers.

Banks had to build a powerful fraud and risk management and strengthen their portfolio using their analytical capabilities. It helped them to generate useful insights, improve the operational process, and decide quickly on process-related matters. The impact of the global setback urged the banks to focus, assess and review their stress testing models. Since banks actively took steps towards digital transformation, they had to ensure that their systems had seamless performance, system integration and customer acceptance of their digital platform.

Efficient software and algorithm were needed to detect fraud and reevaluate the risk modelling. It allowed banks to calculate pricing, and evaluate and measure the credit risk of borrowers. Banks needed real-time data and an advanced risk calculator, as the economic impact during this time turned a large amount of data unreliable. Banks had to develop advanced analytical capabilities to filter data accurately and spot anomalies quickly.

Since the outbreak of the global pandemic, there has been a significant rise in criminal activities, increasing the threat of money laundering. Banks will also have to strengthen their KYC and Anti-money Laundering (AML) programs. It helped the banks and financial sectors to manage risks and keep pace with changing regulatory scenarios.  

Journey Ahead from Here

The rising concern and uncertainty of this pandemic situation have made the global banks sort out multiple ways to address their customer requirements. The customers require extensive support and flexible services, and interaction. As the situation demanded high technical upliftment, banks were likely to adopt the followings that allowed and helped them to meet their customer expectations. 

  • Accelerated digitalization efforts
  • Cloud migration
  • Intelligent workflow management
  • Partnerships with the BFS sector and FinTechs
  • Embedding security and governance across operations
  • Advanced risk modelling

The current condition posed multiple challenges and compelled banks and financial institutions to invest more in the digital future. They are now improving their operations by leveraging innovative technologies and continuing to inspire other industries that have not reached digital excellence. The financial sector is on the right track to reap the benefits and enjoy the success of its cost transformation programs for the future.

Ensure Credit Quality in Digital Lending Applications

The digital lending market is exploding with growing apps and fintechs. As per a report IIFL FinTech, the digital lending market is expected to grow to a whopping USD 515 billion by 2030. Lending services are no longer about hard-copy documentation. The lending process has moved far beyond becoming completely digital. From recording queries and customer financial details to credit underwriting and loan disbursal, the process is increasingly becoming online.

The online lending process saves time and effort for customers from physically visiting the bank branches to either sign the documents or verify their identity. Digital lending platforms have reduced foot traffic in branch offices, increasing the dependencies on digital applications, which leads to frequent updates and changes in digital applications. These regular updates require continuous monitoring to create a secure, scalable, and efficient digital lending application.

Why gradually industry shifted towards digital lending from traditional processes?

The traditional lending process was inefficient, filled with errors, and time-consuming. It involved managing hard copies of required documentation, frequent bank visits, and prolonged verification of borrowers’ loan profile, credibility and repayment history. The issues were further amplified if the borrower did not meet the eligibility criteria and underwriting based on their past credit history. Securing loans from the banks remained a matter of speculation for the borrowers. This is where digital lending came into the picture and steadily captured the market.

The current scenario of digital lending

Factors like unlimited access to the internet at an affordable price, smartphones penetrating the market, and applications and software available for loan applications facilitate digital lending. Digital lending in India is expected to touch $350 billion by the end of 2023.  

A report states 36 RBI Approved Loan Apps. These names are independent of banks that already offer lending services at a reasonable interest rate. The lending app comes with instant approval and disbursal within 24 hours, which is extremely convenient for borrowers seeking small and medium-sized loan amounts in case of emergency.

But how the lengthy traditional lending processes become so convenient?

The bank lending apps can access the customer data stored in their in-house server and system. However, the fintech organizations procure this information from various sources like banks and third parties through the Application Programming Interface or APIs.

The fintech applications have to obtain the data from diverse sources. To maintain the turn-around-time and live up to their service reputation, they must send the request data access from multiple sources like credit bureaus for borrower past credit history, link to the bank server for bank account verification and auto debit facility, and more to access borrowers’ details.

The lending process through these applications can be extremely critical if the essential quality checks are not done. There can be rising security concerns, performance & functionality errors, delayed access to customer credit history and a cluttered user interface. Let’s look at the complications or bottlenecks in digital lending applications and what problem it may lead to if remains unresolved.

  1. Security and privacy – Customer data is the most sensitive. Digital lending applications procure customer data directly from the bank server and from a third-party vendor. These transactions can be highly sensitive, and if attacked by malicious malware, they can lead to terrible issues if unresolved. It is crucial to ensure robust security measures and compliance with data privacy regulations.

  2. Data protection from risk and fraud – Understanding the current trend of digital lending platforms protecting customer data from risk and fraud is essential but challenging too. Protecting the sensitive credit details of customers are a complex process if the fintechs do not have adequate mechanism to analyze user behaviour and identify the potential risk.

  3. Scalability – As the number of users and loan applications grows, the application needs to scale efficiently to handle increased traffic and processing demands. Inadequate scalability can lead to slow response times and system crashes during peak usage times.

  4. Migration from Legacy systems – As per a report, over two-thirds of organizations are still using and relying on legacy systems. Legacy systems are non-adaptable and inflexible. They are not compatible with digital lending platforms. Integrating the digital lending platform with the legacy platform can be challenging and may require extensive effort and expert resources. And yet enterprises cannot abandon the legacy platform as they have been running for more than 30 years with an estimated over £2 trillion transactions every day.

  5. Integration with the main banking server – This brings us to the next bottleneck. It is a significant effort to integrate the digital lending platform with banks’ legacy platform. Moreover, the legacy systems are not equipped to manage the integration with the digital platform. They also cannot offer innovative offerings like banking-as-a-service (BaaS) as it does not support application programming interfaces (API) integration with third-party services. However, since the upgradation of these legacy systems is time-consuming, banks resist the changes leading it as a bottleneck in the digital transformation process.

  6. Regulatory compliance – Digital lending applications must be compliant with financial regulations. Frequent regulatory changes also demand financial institutions keep up with the changes and update their applications. With frequent changes in features and functionalities, keeping up with regulatory compliance can be complex.

  7. Data transactions – The digital lending platform pulls large amounts of user data from the main banking systems. It requires robust infrastructure and seamless data integration & management systems to eliminate bottlenecks and ensure smooth operations.

  8. Customer satisfaction – Customers require a fast loan approval and disbursement cycle. Hence, to ensure optimum customer satisfaction, lending institutions validate application workflow that expedites the decision-making process, minimizes delay and conforms to user experience. Also, recurring functionality, performance, and security errors can cause potential application issues that damage the brand’s reputation.

  9. Verification of data quality – Digital lending does not pull irrelevant data. They pull only required customer information. Banking systems may store multiple data but not all data are accurate and useful for digital lending platforms. Choosing the relevant data helps fintechs arrive at an informed essential lending decision. However, verifying the data quality can be complex due to the unavailability of relevant and accurate data.  

  10. Mobile responsiveness – The current trend in digital applications demands high mobile responsiveness. The process can be extremely complex in the absence of a mobile responsiveness platform. Hence, the digital lending platform requires extensive validation to ensure that the platform continues to deliver high-quality services and offer optimized user experience.

Digital lending apps became prominent during the pandemic, and customers are embracing it, because of fast approval and disbursal. But the credit quality remains under the scanner.

How reliable is the credit quality in digital lending applications?

A long-standing business lending process is more effective with manual review, cross-verification, and years of root-cause analysis of defaults and assessments compared to digital platforms. The former could be time-consuming, but it helps to achieve the desired risk outcome. It also helps the banks achieve low default rates.

However, the industry cannot avoid the trend of digital adoption. To adapt to the model, financial institutions have found a middle ground to amalgamate the digital model with the accuracy of data-driven model-based decision-making. As digital lending continues to improve, risk managers can take a calculated approach towards automation.

How can we improve the credit quality of digital lending apps?

Banks are testing the automated digital engine based on data-driven assessments and a structured credit framework to assess credit quality based on predictive default risk. As a result, the decision will be more consistent, accurate, fast and cost-effective.

Is quality assurance and testing essential to ensure the credit quality of digital lending apps? Can quality assurance and testing ensure the credit quality of digital lending apps?

Digital lending apps or fintechs pull data from the banks’ main servers. They also coordinate with TSPs like credit bureaus, collections and more. They handle critical transactions 24/7*365 days and customer details, making QA strategy an essential step. QA and testing confirm that the application and platforms are free from defects and errors before production and market launch. It also must offer outstanding client experience with high-quality mobile apps. Quality assurance and testing helps lenders to improve the credit quality of digital lending application.

Some factors are important here to ensure the credit quality of digital lending applications. API functionality and performance, digital application features and timely response of digital apps.

Though digital lending applications require end-to-end test coverage, including functional testing, reliability testing, validation testing, load testing, UI Testing, Security Testing, Penetration Testing and more, there is one more crucial aspect when it comes to validating digital lending applications.

Our understanding from the projects we have handled is that these applications have a few restrictions and limitations. We have also observed a reliability on API functionality and performance if digital lending platforms have to function without any technical glitches.

As high as the dependency on API, the risk with digital lending keeps increasing. API testing is conducted on Encrypted and Unencrypted APIs, multiple encryption levels and data formats, API tunnelling, instability/availability, handling many security protocols, and more.

We offer manual and automated API testing, validating requests and responses at various API layers. We also validate the accessibility of the API level and check the functionality, reliability, performance, and security of the programming interfaces.

Our intuitive robotic test automation solution, Tenjin, is a functional test automation solution. It is a seamless & effective test automation tool for BA and functional testers. Tenjin Test Automation solution is REST and SOAP API ready. Its features like auto-learn, auto-discover and auto-execute help to learn application interface automatically

We support financial institutions with end-to-end testing of their digital lending platforms.

Both banks and fintechs have brought their lending processes to digital platforms for quick approval and disbursal. It allows the borrower to avail loans in case of an emergency. But like all other platforms, digital lending apps require thorough testing to ensure higher customer satisfaction with lower TAT and improved credit quality. This is where Yethi’s domain expertise and industry come into the picture. We have delivered over 500+ projects for over 130 clients across 30+ countries in various LOBs in banks and financial institutions.

10 Critical Steps in Testing the Business and System Upgrade Projects of Banks

Banking businesses thrive on market relevance and ever-evolving customer preferences. It matters a lot for banks to ensure the highest level of customer satisfaction. They can never compromise business quality as it may harm their reputation, incur a monetary loss, and take away their customer reliability. Compromising the quality of their services and systems may lead them to pay a significant penalty. Hence, testing is crucial in the event of new system installation or upgrades in banks.

Banks ensure to reform their services based on current trends and technologies as customer demands and preferences keep evolving. To stay relevant to their customers and stay ahead of their competitors, banks incorporate the latest technologies and improve their services, eventually improving the business metrics.  Hence, banks must validate every business and system upgrade to retain customers and offer them a seamless experience.

Testing is an integral part of the banking systems which demands a more strategic approach than a random one. It involves a great amount of strategy and planning to ensure that the projects go live successfully without any glitches. As so it may look simple on the surface, testing the business and system upgrades are usually a critical process. There are many steps that an enterprise must consider during the testing of the upgrade projects. Here we have discussed 10 critical steps in testing that the enterprise business must not overlook if their end goal is to serve their customers well and succeed.

Steps in testing the banking business and system upgrades:

Before we consider the step for the execution of successful testing of the business and system, it is important to define the goals and objectives of the testing projects. Here are key considerations to make while determining testing projects of banks once you have determined the objectives of your testing project. 

    1. Requirement gathering based on the project scope.

The testing projects of the business and system upgrade begin with an understanding of the project requirements. The scope of testing, the banking modules, menus, submenus and more are the essential components of any project.

Understanding the project requirements is a complex task as banking applications are quite diverse with multiple features and functionalities. The QA team must have a thorough understanding & awareness of banking modules, functionalities, various layers of application integration and more. The process can be complicated and the project scope may remain unidentified if the teams don’t gather adequate project requirements.

Is it an elaborate exercise to gather project requisites?

Requirement gathering is the entry phase of the software testing project. As a part of the project strategy, it is essential to gather the project requirements and understand the scope of the projects.

By gathering project requirements and understanding the project scope, it is easy to strategize, define, and measure the testing project outcome. It also helps in deploying manpower and determining the time and cost of the project. The team understands what is to be tested; they also understand if they are missing out on any important components, or any potential risk involved so that they can discuss with the stakeholders to have a detailed knowledge of requirements. The team also creates the requirement traceability matrix (RTM) to map the test cases.

    • Requirement validation based on available resources (Time, money, and manpower)

Validating requirements helps the team streamline the testing projects and segregate them into categories to individually address the issues in each category and allow to resolve them immediately. Based on the project categories the requirements can vary. After gathering the project requirements, the team takes an overview of the available resources and validates if the available resources match the project requirements and identify the test environment.

Banking applications are usually complicated with multiple requirements. Also, based on new trends and customer requirements, the application features may change frequently. This dynamic nature of the requirements can further add complexity to the validation process, as they are subject to frequent changes based on the changing application features. Additionally, resource availability in terms of time, funds, and manpower may experience small variations, influenced by the specific project requirements and scope.

Can project requirements change frequently? Does frequent changing project requirements affect the testing project outcome?

Frequent changes in project requirements may not affect the project if requirement gathering is done considering all aspects. The diversions are evaluated by the project team to ensure they can accommodate frequent changes without affecting the project or workflow. Changes in applications are part of the project plan, so a pre-defined strategy and a thorough requirement validation can help the team to prepare with the time, money, and manpower for a successful test execution of business and system upgrades. The frequent changes will significantly not impact the project outcome if the requirements are gathered, assessed, and validated adequately before initiating the project.

    • Planning tests under the scope of the AUT

Planning the test is a critical step for the effective execution of the software testing life cycle. Testers define the test plan, application under test, scope of testing and more to yield expected results. Based on requirement gathering and validation, the team also effectively calculates the effort, time and cost required for testing. The project team also develops the test strategies, methods, and techniques during this stage. They also identify the test cases, test deliverables and milestones. The planning stage will only be successful when a detailed plan is presented, reviewed, and approved.

The test planning stage can be complicated because this is the stage when all the essential components are defined. If one or more project components are not added, then there will be a lack of clear understanding of the project, testing objectives, and scopes, leading to issues in deliverables. Since the executable test cases are identified in this phase, if the roles and responsibilities are not assigned, and test plans are not reviewed and approved, it will be tough for the project team to move on to the next step.  

Can the project team accommodate application changes if the request is raised at the later testing phases? Will it harm the project plan?  

Application changes are normal and can be raised at any stage. The changes are purely based on regulatory and technology updates as well as customer demands. Hence, the updates may come frequently, which the team must accommodate accordingly. Since the application changes are flexible there are greater need to incorporate these changes. Feature and functionality changes are integral parts of project plans.

    • Selecting the test cases for the sanity check

This is an interesting phase in the testing project where you identify the new functionalities, feature changes, and any bug fixes. Since the objective is to perform a quick and fast sanity check, there is no requirement to write new tests. This step ensures that the newly implemented changes are working without any errors.

The process can be complicated as only a small portion of test cases are selected for sanity checks. The team will fail to determine the impact ratio if the right test cases are not selected. The project team must thoroughly understand the project requirements and select only those test cases that might have the highest impact on the application’s functionality and performance.  

What is essential to identify the test cases for sanity checks?

Based on the project, application under test, project scope and test environment, the project team can identify the test cases based on their test predictability. The project team usually handles multiple test scenarios to understand the test cases that can have the maximum impact on application features, functionality and performance and choose the most probable test cases. Usually, the requirement gathering and analysis, understanding of AUT, project scope and the test environment are the essential aspects to identify the test cases for sanity checks.

    • Designing and developing the actual test cases

This is the actual phase when the testing team starts designing and developing the test cases. The team prepares the required test data for testing, and the quality assurance team reviews it. The team identifies the test cases that must be designed and developed and writes them to ensure that the written test cases are easy to understand. They also create test data and scenarios for test cases, identify probable results, and review and validate test cases. They update the requirement traceability matrix (RTM) with new changes.

The main objective for the team in this phase is to have a set of accurate and relevant test cases to ensure that they provide complete test coverage of the software and application. It helps the team to have a 360-degree overview of software quality. A comprehensive testing process allows the team to detect potential errors in the software before it is released. The team prepares the test data and keeps it ready for test execution. In the test case development phase, the testing team creates, verifies, and reworks test cases and manual and automated test scripts.

Banks may face two types of complications at this stage. First, if the team lacks the skill and knowledge to identify accurate and relevant test cases, and second, if due to multiple changes, the number of rework test cases increases. It may consume an ample amount of time and money to find skilled people for the job and validate the increasing number of test cases due to frequent changes in applications.

Can there be a possible solution to reduce the effort and time of rework?

It is time-consuming to find skilled developers and testers when your projects are time-bound. Even if you manage to put the entire team together, you might have to meet with one more challenge of accommodating frequent reworks. The project team might have very less time to meet the project deadline and time-to-market. So, banks hire third-party vendors to handle the testing projects to ensure they go live confidently without worrying about software quality. Since the amount of rework increases with application changes, it occupies a significant segment of the software testing lifecycle compared to new changes. Hence, the team selects a robust test automation solution to reduce the rework or regression test time.

    • Understanding the available test environment

Some banks and financial institutions have a conducive test environment with the necessary hardware, software, and network configuration for test execution. While the team designs and develops test cases, they can simultaneously evaluate the existing test environment. If the test environment does not support the massive business and system transformation and upgrade projects. The team must consider setting up the test environment for an effortless test execution project.

The process is complicated if the bank runs long on its legacy system and has a massive amount of data to migrate. Banks find it tough and time-consuming for seamless execution of the testing process without a favourable test environment. Moreover, they must delegate skilled people for the projects or hire a new team.

What is the possible solution if you do not have the required team strength, bandwidth, and allocated budget to set up a test environment?

Banks can consider hiring a third-party vendor to take care of all their test requirements and deliver the project on time by meeting all the quality standards and regulatory compliance. The QA solution providers have the required test environment or can set up one to ensure timely project completion.

    • Setting up the right test environment for seamless test execution

The test environment defines the condition on which the software is validated. Setting up a test environment can be simultaneously conducted with designing and developing test cases. In this stage, the project team determines the software and hardware conditions for testing the product. As the activity is done by the development team, the testing team may or may not be involved in the process. However, they check the readiness of the available environment, and this is known as smoke testing.

The first step in setting up the right environment is to understand the required architecture. The team must be skilled and aware of the available architecture. The test environment needs to be adaptable for seamless test execution. The process can be complicated if the environment is not favourable for test execution and is not ready with the test data set up.

How can the team ensure that the environment is built-ready for seamless test execution?

The team must validate the readiness of the test environment to ensure seamless test execution through smoke testing. They must understand the hardware, software, and network configuration well to ensure that the environment supports the test execution without any disruption.

    • Executing the test cases

In this phase, the test cases and test scripts that were created in the design and development phase are executed to detect defects or issues or errors in banking software. The evaluated results are gathered and assessed by the team. Test execution combines the two phases, planning and developing that verify the software quality. The activity also helps report bugs or technical glitches in the software. If the testers report bugs, the errors are reported to the developers who fix the bugs, and the testers test the software again.

The process can be complicated if there is no adequate test, or if there were any issues in the planning and development of the test cases. Also, if the test environment is not favourable or the test execution did not happen as per the test plan. The team must also put the stages together to finally execute the test cases.

Can multiple test execution degrade the software quality?

The objective of software testing is to validate the accuracy, stability, reliability, usability, efficiency, flexibility, portability and more. Software is tested to ensure that it successfully passes all the criteria. Multiple test execution does not degrade the software quality, instead, it delays the product release. It may not be necessary to test the same feature again and again. Moreover, testing the same feature repeatedly can be time-consuming. It is a good practice to test only applicable changes, performance, and security instead of testing the complete software functionality and menus. It saves time and effort and does not disturb the existing feature of the software.

    • Tracking and reporting defects

Tracking and reporting defects is one of the objectives of testing the software and its quality. The defects or issues are logged in defect tracking systems that are raised during the test execution. The details of the defects include descriptions, defect severity, priority, and more. The test execution results are examined to verify the software functionality and performance and simultaneously detect defects if any.

If the team identifies defects, it is sent to the developers for resolving the errors and retested again to ensure that the defects are fixed. After the defects are fixed team documents and report the test results to the stakeholders. The end objective is to identify and resolve the defects to ensure that the software can be released without any errors. Hence the software must be tested multiple times to ensure all defects are resolved. The process can be complicated if the team does not have an adequate mechanism to identify defects. Finding defects manually is a complicated process.

What solutions can organizations opt for to reduce the rework and multiple retests?

Multiple defect-tracking tools in the market can reduce the manual effort of identifying defects in the software and reduce the rework. For its benefits, organizations use defect-tracking tools that can be easily integrated with testing or test automation solutions. This saves time and effort and reduces rework. The team can confidently fast-track product releases.

    • Planning exit test followed by test closure

This is the final stage of the test execution and a critical one. In this final stage, the quality evaluation of the software is completed and determined if the product is ready for release. In this phase, all testing-related activities and formalities are concluded and documented. The testing team by now must have a clear understanding of the software quality and reliability. Whatever issues have been detected this far must be resolved. The team must document the testing process and improve the testing processes based on their experiences. It helps in removing the bottleneck from future testing projects.

The stage comprises preparing test summary reports, defect tracking and reporting, cleaning up the test environment, preparing test closure reports, transferring knowledge, and providing feedback for process improvement. The main objective of test closure is to validate the software quality and ensure the product market launch. It also confirms that the test execution was organized and completed efficiently. The process will be complicated if there is a lack of relevant information, or the team fails to capture feedback and critical lesson learnt from the project.

How to ensure that the report is whole and comprehensive?

Recording the project reports manually will be liable to errors as there can be a chance of missing out on information. There are a few test automation solutions in the market that comes with easy reporting solution. As reporting is a tedious, elaborate, and time-consuming exercise, these solutions are convenient and useful for the project team.

Conclusion

The steps, scenarios, and situations mentioned above are our understanding of the business and system upgrade projects we delivered. Yethi has supported 125+ banks and financial institutions in 30+ countries in their transformation and upgrade projects. In the 700+ projects we have completed so far, we have achieved quality and punctuality by completing the projects within strict deadlines.

We manage end-to-end test lifecycles efficiently to ensure customers receive quality outcomes within the project deadline. We have conducted end-to-end functional testing and non-functional testing in upgrade testing projects. We have also validated the robustness and responsiveness of systems while ensuring stability and flexibility in data migration and systems performance testing.

We leverage the highest potential of our robotic codeless test automation solution Tenjin during repeated regression cycles in a project. Our intuitive and intelligent solution comes with banking and FI-specific plug-and-play adapters that reduce implementation hassles with banking applications. Tenjin offers data-driven test execution and covers pre- and post-regression cases and effortless system integration testing, user functionality testing, user acceptance, regression testing and more. It comes with easy report generation capabilities and integration with defect management tools to generate test summary reports.

Transaction Banking Evolution and Testing

Transaction Banking evolution and testing

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

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

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

Technology and Innovation in Transaction Banking

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

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

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

Evolution in Transaction Banking

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

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

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

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

Liquidity Risk & Counterparty Risk

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

The Scope of Testing Transaction Banking

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

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

Yethi’s Testing Approach and Methodologies

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

We have tested the following modules,

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

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

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

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

Digital Lending for test automation

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

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

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

Rising customer risk in digital lending

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

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

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

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

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

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

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

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

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

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

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

Why testing is an important digital lending platform?

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

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

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

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

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

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

Testing the fastest growing Financial Management Systems

financial Management systems

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

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

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

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

Purpose of financial management systems

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

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

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

Testing financial management systems

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

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

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

Conclusion

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

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

Mobile banking and Internet Banking platforms

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.

5 Common Misconceptions About Test Automation

Test Automation

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

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

 What is Automation Testing?

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

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

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

 5 common Test Automation misconceptions:

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

 Conclusion

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

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

Risk-based testing for bug prevention to bug detection

The primary intent of conducting software testing is to uncover the bugs, assess them, and identify the associated risks. This approach will enhance the software cycle-over-cycle, mitigate risk, and allow smooth business operations to reflect an improved business revenue.

The testing volume increases faster than deploying the new functionalities. There is no need to test the old capabilities frequently to ensure that the new functionality doesn’t create any discrepancy in the system. Also, various stakeholders might have a different view of “risks” than developers or testers (not just probability of failure, but impact); hence, it becomes critical to carry out risk-based testing for bug prevention and detection.

Risk-based approach helps,

  • Identify high-risk areas
  • Direct testing efforts
  • Early detection for high-risk failures
  • Lower regression errors (no degradation in functionality that was working)

Testing of pre- and post-development codes help in identifying and resolving the bugs in the system; thereby, it will help mitigate risks quickly and efficiently. It is to be noted that risk-based testing is not limited to bug prevention and detection alone. After the complete code of the software is written, the testing experts can also identify issues based on their expertise, knowledge, and experience when the software is in the development or designing phase. However, no software should go without risk-based testing in the deployment phase, as it can cause technical issues or corrupt the database and applications.

Difference between Bug Prevention and Bug Detection

Bug prevention and bug detection in software are two different constraints with regards to the aspects of before the code is written and after the code is written, respectively. Bug prevention is the practice of discovering issues before the coding for any software is completed. With bug prevention, concerned individuals can rethink the design so that the code possesses the ability of risk mitigation.

On the other hand, bug detection is the practice of uncovering unknown risks during and after the code is written concerning the impact of other distinct constraints on code. Through bug detection, coding teams can make changes in real-time to enhance the scope of software utilization and avoid any probability of encountering issues.

Concept of Risk-Based Testing – bug prevention and detection

Risk-Based Testing can be explained as a basis of prioritization of the test cases that are to be conducted on software. By documenting the significance of function, its likelihood of failure and impact in case of failure, testers can focus their efforts on areas that can have a significant negative impact.

The process of bug detection comprises analysis, prevention, and management, which will ensure that all the bugs and defects are identified and resolved before the software reaches the final users and prevent it from causing any issues in their system.

Further, bug/defect analysis, prevention, and management practices ensure that all the bugs/defects go through a pre-determined life cycle to be fixed and closed. The nature of the bug depends upon the resources it uses, and the effects cause the software to behave abnormally. The goal of bug analysis, prevention, and management practices is to identify the root cause and treat them. 

The root cause of the bug occurrence generally contributes to the factor of the bug. It needs to be mitigated and resolved to eliminate all the probability of recurrence of the concerning defect. However, the coding team needs to make sure the elimination of root causes should be affecting the performance of the software in any way.

The bug prevention and detection in the risk-based testing process concern the risk containment and mitigation aspects for the risk management process. The risk management process ensures that software is prepared to mitigate the risk whenever it arises during the risk-based testing process. It is based on predetermined programming that can minimize the adverse impact.

Risk Monitoring and Controlling

Risk monitoring and controlling is the process of tracking all the identified risks, such as monitoring residual risks, detecting the new ones, assuring risk plan execution, and evaluating the software ability and effectiveness to eliminate the risks. The risk monitoring and controlling process works throughout the software development life cycle by recording the risk metrics related to the implementation of contingency plans.

While carrying out risk-based testing, 75% of risks arising in test cases can be monitored and controlled, whereas 25% of risks in the test cases may remain undetected due to lack of exposure to application functionalities. Risk monitoring and controlling is a continuous process as new risks may arise by adding new functionalities in the ongoing software development lifecycle. An efficient risk monitoring and control process aims at providing necessary support. It ensures that all risk-based testing practices and robust communication are adapted for making effective decisions to mitigate risks proactively.

Overall, it can be stated that risk-based testing and its varied practices and processes ensure that software is deployed for use by the final users without any bugs or defects. Risk-based testing carries out the practices for bug prevention, bug detection, defect analysis, defect prevention, and defect management for eliminating every possibility of software misbehavior at the user’s end.

Risk-based testing also documents every risk and its triggers so that a risk mitigation plan can be executed as soon as any risk occurs, or trigger is activated. Risk-based testing works in real-time as it starts with the planning phase of software and ends when software is deemed ready for deployment after all the testing. Real-time working of risk-based testing ensures that all the bugs and defects are eliminated from the root causes before they adversely affect the performance of the software at the users’ end.

Yethi is your go-to all your software QA needs

Even a minor bug can adversely affect the software quality putting the brand reputation at stake. An excellent testing process can improve the quality of the software. At Yethi, we follow a process of risk categorization and prioritization. We offer automated business process simulation for high-risk areas to increase the efficiency, accuracy, and consistency of the banking/financial software.

We select test scenarios based on importance to customer & security, financial impact, the complexity of business logic, and integration points. Being a leading QA partner for banks and financial institutions, we have touched base in over 22 countries offering QA solutions for more than 80 clients worldwide.

Yethi’s test automation platform, Tenjin, is a 5th generation robotic platform that can efficiently carry out even the complex testing process with ease. It handles test execution, test management, and defect management at various stages to ensure accurate test results with excellent performance without compromising the critical aspects.

Importance of Automated Regression Testing

As technology is advancing, the software gets subjected to various new and improved features. Such integrations may cause errors/bugs in the system not allowing it to function accurately. Hence, regression testing is conducted to test the entire software to understand its behavior upon the addition of new integrations and identify any bugs arising due to the same. This is true for even minor code changes or any alterations made across the process. Simply put, regression testing ensures that the software or the piece of code that was previously developed and tested still behaves in the same way after the code has been changed or altered.

Carrying out regression testing manually can be a tedious task, and due to its mundane and repetitive nature, manual regressions may not be fruitful. Hence, regression testing is automated to ensure consistency and accuracy while avoiding human errors.

Significance of Automated Regression Testing

Incorporating manual regression testing can be a draining experience as it involves a lot of time and effort. Further, its tedious nature is prone to causing high errors. With the ever-changing technology, the process is getting complex and manually handling regressions cannot be considered a feasible option. Including automated testing as a part of the product development strategy is what most organizations are doing today.

Automation testing yields the best outcomes with optimal time and resource requirements. It focuses on conducting accurate regression to create products of higher quality, which in turn will offer a seamless customer experience. It streamlines the process, improves workflow efficiency, delivers the effective solution, and speeds up turnaround time.

Benefits of implementing automated regression testing:

Saves Time and Effort: Automated regression testing can handle repetitive tasks effortlessly and efficiently in lesser time, hence, saving significantly on time, cost, and effort.

Reliability: Automating regression testing will reduce human errors considerably while ensuring accuracy and consistency on the outcome. Their accurate and consistent nature makes the process reliable compared to manual regressions.

Tests running round the clock: One of the major advantages of automating regressions is that tests can be initiated and executed any time, i.e., tests running 24/7 and results being generated constantly.

Cost-effective: The reusable nature of test cases significantly reduces the cost of test case generation, making the whole process cost-effective.

Improved ROI: Automating regressions may seem to be a little more expensive than including expenses for buying tools, initial setup costs, and investing in writing test cases. However, this maybe a one-time investment; it yields good results in the long run adding to improve ROI metrics.

Early detection of bugs: Testers will be able to spot problems and defects earlier in the software development cycle thanks to automation.

Steps involved in Automated Regression Testing

Choosing the suitable test cases

Choosing which tests to re-run for regression testing is a combination of technology awareness, clarity on requirements, and intuition. Whether you’re performing priority testing or subset testing, the goal is to increase the likelihood of triggering any regression that has been introduced. Choosing the right test case from the repository is the most critical step that determines the success/failure of the testing process. Choosing the right test case is an indication that half work is done successfully, the rest remain in executing it with the right tools.

Regression test execution

Before the advent of autonomous testing, ensuring that your tests are effectively scripted is a prerequisite for good regression testing. If a test requires the system to be in a specific state, try sequencing tests to reduce the number of times you must change the state. Make sure your test suite produces data that is straightforward to understand. It should be simple to figure out which cases were unsuccessful and what the system was up to at the time. Occasionally, you’ll see apparent failures resulting from incorrect configurations.

Maintaining regression tests

Like any other tool, automated regression testing is only as good as the people who use it. And, like any suitable instrument, it needs to be cared for and maintained. When new test cases are produced, consider whether they should be included in the regression tests. “Does this bug need to be added to the regression testing?” you should ask yourself whenever you patch an actual bug in your code. In most circumstances, the response will be “Yes.” You should, however, include tests that check the functionality of any new code paths.

Why Is Automated Regression Testing Right for Your Project?

Organisations build software applications to provide value to the customers. With time, these applications need change, or the developer may look to add more functionalities and features to the software based on the customer requirements. With each change in code or functionalities, the app becomes more and more complex. Hence tests for regression issues should be added more frequently with every update. Automated regression testing could be a boon for such organisations.

Here are some of the reasons why automated regression testing could be suitable for your project:

  • get higher test coverage
  • get continuous results
  • higher test efficiency
  • fast results
  • reusability of tests

Yethi for Automated Regression Testing Solutions

Yethi is the market leader in offering software QA solutions to global banks and financial institutions. Yethi’s test automation platform, Tenjin, is capable of handling efficient regression testing for complex banking and financial system. It has proven to offer nearly 100% accuracy in regression scenarios, and its half-a-million test case repository cuts immensely on the cost.

Tenjin is a 5th generation test automation platform with robotic UI capabilities which can automatically learn and relearn without manual intervention. It offers high test coverage and has the ability to test even the complex banking/financial system with utmost ease.