Over the years technology has been viewed as a major game changer for the finance and banking industry. Online banking, bill payments, and related transactions have become a way of life. With digital technologies influencing every aspect of consumer routine, it has indisputably brought a fresh wave of change and innovation in the financial domain.
PWC Report “An Ounce of Prevention, Why Financial Institutions need Automated testing”, clearly states the hazards of manual testing:
- 21% of defects are not identified until after software goes live
- 70% industry target for a percentage of testing that should be automated.
The banking technology landscape has a unique set of challenges especially due to the major digital transformation drives most of the financial institutions are undergoing. The number of customer facing and customer servicing digital channels have increased with these digital initiatives. Despite this, the existing legacy back-end applications are still irreplaceable as they continue to hold most of the business processing logic. This has resulted in complex integration points – between the customer-facing digital touch-points and legacy back-end applications. Therefore, any banking transaction- simple or complex involves traversal across a gamut of platforms and applications.
Additionally, the nature of a banking transaction – be it loans, revolving credit, retail lending etc. has long transaction life cycles that span across multiple calendar days to a month and involves validation of complex financial calculations and regulatory requirements. Testing such domains and lifecycles that involve heterogeneous platforms, intensive in calculations and lengthy transaction time with huge dependencies on batch processing certainly brings its own unique list of challenges.
As every other industry did at the start, Banking also tried to meet its testing and quality compliance needs by doing it manually. But with the uniqueness of the landscape and lengthy lifecycles that banking poses, manual testing was not only time consuming but also incomplete in most of the scenarios involving End-to-End testing. The complex financial calculations were typically avoided and testing was restricted to simple status check – thus reducing the testing effectiveness and leaving it till the end till the business users perform basic acceptance tests
It became imperative that with growing digitization and ineffectiveness of manual testing, the Banking industry had to naturally adopt automation. But even that didn’t turn sweeten the pill.