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Why is Test Automation critical for the Banking Industry?

Testing automation

The financial landscape has drastically changed in recent years. Even with banks’ internal barriers – complex technology architectures and intricate organization structures – each country imposes regulatory obligations to comply. Additionally, the recent crisis has put tremendous pressure on banks to re-look at their traditional operating models.

Why Testing in Banking ?

Testing Automation in Banking

Banking business priorities have shifted towards optimizing internal cost structures and identifying new in-demand customer segments, products or service lines. Customer touchpoints are becoming contactless, and experiences are becoming personalized & seamless. Banks have rapidly rolled out innovative solutions easing routine operations during lockdowns. For instance, bank servicing customers through WhatsApp, credit card companies revisiting transaction limits, or new loan products for businesses.

Organizations with mature IT operations with agile practices and high automation capabilities have responded and adapted well to the post-crisis situation. With the adoption of Agile and DevOps, companies are making relentless efforts to effectively shorten the release time from code’s commit-to-deploy in production. Testing is an essential step in this process that assures stability followed by step automation thereby enabling speed. After all, a business needs quality with speed.

Test automation was initially viewed as an efficiency enabler, with only repeated test activities like regression testing considered for automation. In the early 2000s, Testing models emerged, and automation evolved as a standard framework integrated within the testing lifecycle. With businesses quickly adopting agile execution methods, Test automation has become an integral part of software delivery pipelines assuring quality.

Current Crisis in the Banking

The current crisis necessitates the need for superfast changes; hence, test automation needs to incorporate technologies (such as analytics and machine learning) to balance speed and quality. It is therefore impertinent for banks to understand how intelligent test automation defines the journey towards being a mature organization.


Let’s see how:

Long test execution times

A typical regression suite will involve thousands of test cases and takes hours to run despite automation and hence becomes a bottleneck. What would you prefer – running 1000 test cases for banking applications in 3 hours and gaining 90% confidence, or adopting intelligent test automation, running only 1/10th of scenarios in just 15-20 minutes and gaining 95% confidence? Hence, organizations that build a machine learning model based on former changes positively impact their existing functionality over time. For instance, changes such as defect history, test execution associated with code changes and traceability can be used to identify the optimal set of scenarios to execute for the current code change.

Test scenario generation and Test data

Ideally, a customer would want to view his savings account, credit card, Loan EMI, Mutual Fund Investments all on a single dashboard. However, in reality, these are most often separate enterprise systems in the backend. The increased need for security and integrated real-time information brings additional complexity to the mobile banking application’s testing needs. While numerous test scenarios increase the test execution time, an insufficient amount will cause severe quality issues delaying its move to production. Creating the right set of end-to-end scenarios and associated test data is a challenge for banks due to its legacy, need for business knowledge and right analytical skills. Worksoft automate or Tricent is TOSCA are great tools that have created revolutionary changes in test scenario generation for the banking industry's needs.

Digital devices multiplying test scenarios to unmanageable numbers

Presently, mobile and web apps have become the preferred mode of performing banking transactions, making it inevitable for the banks to ensure cross-device and cross-platform workability. Further, scriptless or codeless automation is gaining traction, with tools like Applitools leveraging Visual AI technologies to provide unparalleled testing accuracy across all browsers, devices and viewports.

Performance Failures

Performance failures can cause financial loss to customers and severely impact the bank’s brand image. The need for practical performance tests integrated with the pipeline is essential. Monitoring performance levels in production for varying loads and extrapolating or simulating performance scenarios is an intelligent way of handling performance tests.

Growing needs for Security and Regulatory compliance

Banking websites and customer portals are favourable targets for cyber threats, including fraudulent transactions, hacking, etc. Hence, security test automation integrated with DevOps is important in all financial institutions. Regulatory compliance is more stringent worldwide, it necessities the need to verify appropriate controls automatically. Robotic Process Automation (RPA) and Natural Language Processing (NLP) comes to the rescue here in ensuring the correct identification and audit of systems for regulatory compliance.

In summary, Test Automation in Banking is responsible for addressing today’s need for agility and high-quality customer experiences and NSEIT can help you deliver all of this. Excellence in Test Automation is vital for enabling continuous innovation and faster rollout of newer banking products and services to the customers.

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