Money makes the world go round. Thus, it's no surprise that the demand for financial products is always high, especially financial applications given today's rapid advancement of technology. In fact, mobile banking apps have now surpassed Internet banking to be the most popular platform.
For many users, financial apps are the lifeline they rely on to manage their personal finances or gain valuable insights into their business. Some employ them to trade stocks and purchase ETFs while on a business trip; others handle retirement planning from the comfort of their poolside.
Regardless of the user's purpose, financial apps always ensure security and compliance with the constantly evolving government regulations.
That said, enterprises should concentrate on financial software testing to ensure the app runs smoothly to keep users coming back. Then how can we perform adequate quality assurance on financial apps? Let us figure it out in this article.
As a broad and diverse industry, financial services encompass various types of software. These entail app-based retail banking services to trading algorithms for brokerages that analyze market movements and trading patterns. Nevertheless, these financial apps share the critical need to process large amounts of data quickly while maintaining data integrity and accuracy.
Contrary to the "move fast and break things" approach prevalent in the early to mid-2010s, the ideal philosophy of financial software development would be "move fast and never break anything". This is because they are subject to multiple regulations and compliance requirements and are associated with high risks. Hence, it's vital for those apps to undergo a thorough testing process before deploying to a live environment, ensuring that the code is free of any bugs or defects.
Moreover, financial apps typically have complex business logic involving calculations, algorithms, and workflows to handle trading, lending, and risk management transactions. This calls for extensive testing, including different scenarios, edge cases and business rules.
However, the dynamic and fast-paced nature of the financial industry demands a heightened focus on rapid development. As a fiercely competitive market, with numerous companies vying for supremacy, constant innovation and prompt product delivery are crucial to staying ahead. This presents an exciting challenge for enterprise software testing in finance, where the need to balance speedy development and comprehensive testing becomes paramount.
Effective financial software testing should validate the product from both regulatory and reliability requirements. Does the enterprise software testing conform to business specifications? Can it manage a high volume of transactions? Does it adhere to current regulatory standards?
Answering these questions in detail is the goal of finance-specific software testing, and a proficient testing team leaves no stone unturned until they're fully addressed.
Here are some testing methods that enterprises might want to consider while testing finance software:
User acceptance testing, as the name suggests, typically occurs in the later stages of the testing process. During UAT, the team conducts scenarios based on potential use cases and often invites a group of stakeholders or real users to the development facility for in-person testing to emulate real-life scenarios.
To ensure effective testing, a new dedicated UAT environment is set up, replicating the real system. A database dump is deployed to generate valid and relevant customer data, replacing real user personal information. Testing is then performed by the product team and real customers in the UAT environment. Subsequently, the product team shares a build health report with key stakeholders, providing insights into the product quality.
Types of UAT include:
This testing approach ensures that the developed system adheres to the standards set by the organization and relevant regulatory bodies. Certified compliance experts, authorized by the regulatory body, perform this testing by visiting the development facility and auditing the application against industry-specific standards.
Additional regulatory and compliance clearance from local legal authorities may be necessary if the financial application is used in multiple regions or countries. The specific criteria for regulatory and compliance requirements vary based on the types of finance app and the country where it is used.
Some of the popular regulatory and compliance comprise:
Integration testing is a crucial aspect of testing for finance apps that often involve integration with various third-party systems. For instance, an online loan provider app may integrate with credit bureaus, address verification services, loan processing software, and customer relationship management (CRM).
Integration testing typically evaluates the following:
Security testing is essential for financial apps due to the sensitive nature of the data they handle, making them prime targets for hackers and fraudulent activities. It ensures the app is not vulnerable to cyber-attacks and complies with standards.
There are various types of security testing:
Final thoughts
When it comes to enterprise software testing in finance and fintech, having domain expertise is crucial, and that's where KMS Solutions excels. We have a proven track record of 12 years of delivering successful software testing projects for enterprises within the BFSI industry. Let us help you eliminate bugs and ensure the highest quality standards for your software, giving you the confidence to launch it into the market.