Why Testing Is Vital For Banks And Fintech

It’s critical for banks and fintech to keep up with the ever-changing technology landscape if they want to remain competitive.

At the same time, protecting customer data and ensuring safe transactions needs to be their top priority. More people are transitioning away from traditional banking practices and using digital alternatives. However, a recent study by IBM found that 43% of banks and financial institutions have been the victim of a cyberattack in the past 12 months. In order to combat these threats, it is important for banks and fintech to have a robust testing regime in place.

Banks and fintech shouldn’t limit themselves to one type of test method either. There are advantages to deploying multiple approaches and utilizing AI to assist. If you work in a financial institution, here’s what you need to know.

The Benefits of Testing to Banks and Fintech

By identifying and addressing potential vulnerabilities, banks and fintech can ensure the safety and security of their customers’ data. Additionally, it demonstrates they comply with regulatory requirements and look to improve their overall risk management programs.

It can even save time and money in the long term. Comprehensive testing helps identify areas where process improvements are needed, enabling banks to enhance their customer service offerings. There are many other advantages that testing provides as well.

Reduced Risks

The most minor software glitch has the potential to cause catastrophic issues. In relation to banking or fintech apps, it could leave the platform vulnerable to data theft, cyberattacks, and security breaches.

Testing plays an essential role in ensuring these glitches are identified early. It can reduce the risk of irreparable brand damage due to sensitive information getting shared with the wrong people.

Faster Updates

When banking regulations change, it can require significant alterations to existing financial platforms. However, the customer expectation is that these adjustments are seamless and that they can continue to access their money when they need it.

Utilizing a Testing as a Service (TaaS) provider can ensure that regulatory requirements are met while protecting the customer experience. Usability testing is just one example of how banks and fintech can deploy updates that don’t cause unnecessary confusion or frustration.

Improved Integration

While speed and security are important to test for, integration with internal software and third-party applications is also vital. Customers want seamless experiences when spending their money and don’t want their personal information exposed when managing their finances.

To achieve this, a deep testing strategy is required. It will need to consider how certain data types are protected and which pieces of information are shared with other applications. At the same time, it needs to be fast as customers won’t want to wait to complete transactions.

Testing Methods Banks and Fintech Should Use

Banks and fintech should use a variety of methods to test their security and customer experience. By utilizing different approaches, they can get the assurance they need that there are no weaknesses or vulnerabilities that can cause irreparable damage.

Performance Testing

Financial institutions should use performance testing to ensure that their systems can handle the expected load and peak times. It can help identify and fix problems before they cause an outage or affect customers.

This approach can test different scenarios to see how their system would respond under various conditions. This helps them plan for potential issues and ensure that their platform can handle the expected load. It can also identify areas where they need to make improvements to system performance.

Penetration Testing

Banks and fintech possess a wealth of personal and financial data that can be exploited. To protect themselves and their customers, they should use penetration testing to identify and fix vulnerabilities in their systems.

This method tests the networks and systems to find security weaknesses. Banks and fintech can better protect themselves from cyberattacks and data breaches by identifying and fixing these vulnerabilities.

Security Testing

Security testing can safeguard banks and fintech’s customers and protect their systems from attack. It can even help identify vulnerabilities before they are exploited.

This testing method is also vital for protecting banks and fintech against lawsuits. When they suffer a data breach, customers may sue them for damages. It can even cause other customers to lose trust in the bank’s security measures. So, security testing can help financial institutions regain confidence by demonstrating that they are taking the necessary steps to protect their data.

How Artificial Intelligence Can Help

Artificial intelligence testing is one way banks and fintech can ensure they’re protected from any vulnerabilities. This process involves simulating real-world conditions and scenarios to identify potential issues with the software.

AI testing can help banks and fintech in several ways. For starters, it can help them find and fix issues with their software before customers encounter them. It can also speed up the development process for new features. By discovering problems early in the process, they can avoid delays in releasing new features. It can even automate specific tasks, such as regression testing. This frees up time for team members to focus on other high-value tasks.

How to Get Started

The financial sector is under pressure to innovate and keep pace with the latest technologies. At the same time, banks and fintech are under increasing scrutiny to maintain high levels of security. This makes testing an essential part of any successful strategy.

By identifying and addressing potential vulnerabilities early on, banks can avoid costly security breaches. In addition, proper testing can help ensure that new products and services are safe and reliable for customers. However, it’s not a task that requires finding internal resources to complete.

Quality.one can provide risk-free project support with our testing as a service solution in as quickly as 24 hours. We can scale in accordance with your requirements and take ownership of your testing needs so your expert team members can focus on other high-value tasks. No matter what type of testing methods you require, consultation and find out how we can help protect you and your customers.