Yethi strengthens the risk & compliance model for a renowned South Pacific Bank
The Client
A renowned commercial bank in the South-West Pacific region offering banking services was strengthening its governance risk and compliance management to analyze and track the risk category and profile of the customers, meet central banks’ regulatory requirements, and monitor, measure, and mitigate Interest Rate Risk and Liquidity Risk. Yethi partnered with the bank to assist them in their upgradation journey with our testing methodologies.
The Challange
There were some significant challenges while implementing the the best practices of testing to ensure the quality risk and compliance model for the client. The challenges are as follows:
- Non-Availability of Signed Off FSD/SDD
- Unstable Application i.e., Access issues, Downtime
- Maintenance issues i.e., Core Parameters, Application Parameters, Rules
- Partial fixes across related issues
- Frequent changes in ETL logic resulting in rework of Data Integrity validation (In case of historical transaction Data migration
- Functional/Rules/Scenario Parameter understanding issues in SDD’s
- Irregular ECM Batch run after KYC and AML Batches
- Unable to verify the customers after Risk Assessments because of ETL issues.
Scope of Work
- Functional testing across various business areas of OFSAA (KYC, AML, EPM, ECM)
- Solution design review & refinement through requirement analysis and clarification phase
- Test designing based on reference to requirement documents and OFSAA application features and creating risk assessment record
- Review of report formats and risk assessments based on different risk factors of each individual customers/entities
- Test design walkthrough, review and optimization facilitated coverage & quality
- Data integrity validation across source, due diligence on data flow from GL, report structure review and validation, and report data validation
The Solution
Following are the list of activities that Yethi provided while end-to-end testing for the bank’s upgradation project,
- Collaboration among stakeholders facilitated management of issues across requirements, processes, application access
- Due diligence on regulatory requirement alignment by conformity to bank signed-off Parameters
- Proactive measure validating ‘Data Integrity’ before progressing to next phase (SIT —>UAT1 —>UAT2 —>DR1)
- Due diligence on manual computation of key components like Org_Term, Rem_Term, Avg_Bal, EOP_BAL, FTP_Days, TP_Rate (Charge/Credit), comparison with report data
- In-depth study, review and walkthrough of functional aspects with Banks SME team in respect of data points across ALM, FTP & PFT
- Timely identification of issues and opening Jira tickets & re-testing the defects
Key Project Benefits
Yethi established a governance Risk and Compliance model for the bank and assisted them towards their upgradation journey. Following are the key project benefits, which the bank and we achieved,
- Ensuring 60% reduced rework
- Ease of testing/validation by SME team of the bank improving efficiency by upto 70%
- Minimizing rework across Project phases by upto 60%
- Reducing testing / validating time by upto 70%
- Ensuring appropriate depiction of core data values & computed data points across reports
- Ensuring appropriate workflow, logical data interpretation & action outcomes viz., Filing SAR, updating Risk Score based on Analysis & Data inputs from Branch/Customers throughout the ECM Life Cycle validation phases
The Conclusion
Yethi carried out a strategic testing services to ensure a quality governance risk and compliance for the bank. It allowed the bank to analyze and track the customer risk category and profile, meet central banks’ regulatory requirements, and monitor, measure, and mitigate Interest Rate Risk and Liquidity Risk. We helped the bank to ensure that the transactions across the modules and system workflows are of acceptable standard, and meet the regulatory compliance and approved measures.
About Yethi
Yethi is a leader in Quality Assurance solutions for the global banking and financial services industry. Founded by Fintech professionals with decades of domain experience, Yethi is invested in building the next generation of solutions to improve the quality of digital technologies being adopted within enterprises. One such solution is a robotic functional test automation platform, Tenjin, that follows a unique approach focused on ease of use and maintenance.
About Tenjin
Tenjin is Yethi’s scriptless test automation platform, a plug-and-play banking aware solution, with distinctive features like robotic capabilities to learn the application and re-learn after any updates, so regardless the complexity and number of updates, the test execution remains high-speed, minimizing manual effort
To know more about how we can help you mitigate business risks associated with technology enabled operations, reach out to us at info@yethi.in.
