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Banking & Financial Application QA: No Room for Mistakes

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QArea Team
QArea Team Marketing Manager
March 2, 2016
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Last summer, a software glitch at Bank of New York Mellon resulted in inaccurate values for around 1,200 mutual and exchange-traded funds. While there’s no good time for a banking software problem, this one happened on August 24, the same day the U.S. markets had their worst tumble since 2011. It took until the following Monday to fix the software.

When banking and financial apps malfunction, results can be bad and far-reaching.

A lot of software development for startups is outsourced, including development of banking apps. Successfully launching a financial or banking application is more complex than launching a new mobile game. Not only must all security regulations be complied with, the apps have to perform flawlessly. If they don’t, the consequences can be disastrous. This is illustrated by 2015  Cost of Data Breach Study: Global Analysis , Ponemon:

Consequences of poor financial or banking application QA

Whether you’re outsourcing development of a banking and finance app or creating it yourself, your QA testing can play an enormous role in the success of your application.

Banking Software Requires Exceptionally Thorough Testing

According to Security of Financial Mobile Apps ( According to Arxan Report), the state of security testing of financial mobile applications leaves more to be desired:

The importance of banking application and financial app QA

Actual OWASP* risks lack of banking application QA brings

Banking and finance apps deal with confidential personal information, so there is no room for errors. The software has to securely and accurately do things like provide account balance information, transfer funds from one sub-account to another, and provide transaction histories. Software must be tested exhaustively to ensure that every function works properly, and to make sure all sensitive information is adequately protected from unauthorized access. If your bank or financial institution is outsourcing app development, its functionality and security affect your very future.

Lack of QA for banking applications leads to dire consequences

In spite of enormous importance of security testing, many companies often overlook this aspect and produce vulnerable applications. For instance, according to The State of Mobile Application Insecurity Research Report  ( IBM in collaboration with Ponemon Institute LLC):

These are mobile app vulnerabilities present due lack of financial and banking application QA

What to Expect When Testing Financial Applications

With banking apps, as with most software development for startups, testing is not a “once and done” endeavor. Testing must be done repeatedly and apps must be monitored closely, particularly when they are upgraded. Testing should also be done across all channels. If your app will be used in a desktop environment, on smartphones, and on tablets, or even offline, all these channels must be tested. Consumer testing is often a big part of financial app development. Security and analytics testing are mandatory before releasing such an app.

Banking applications QA: expected outcomes

The Phases of Banking Application Testing

Assuming all business requirements are met by the banking app, one of the first and most important phases of testing is database testing. This ensures data integrity, function validation, and proper implementation of logic rules. Other phases of testing for banking and finance applications include:

  • Integration testing to ensure all components work together
  • Functional testing to ensure “answers” are correct for all transactions
  • Security testing to maximize data protection
  • Usability testing so that banking customers will actually use it
  • User acceptance testing by beta end-users to ensure it works in real-world scenarios

Let’s take ,for example, usability level of banking apps in UK( based on Benchmarking Banking Apps Summary Report by Adaptive Lab):

Banking and financial application QA displays following levels of Usability: not more than 75%

Banking and finance app testing has many phases, all of which must be executed thoroughly.

Choose an Experienced, Reliable Partner for QA Testing

Banking and finance rely on software and technology to manage astronomical sums of money. The severity of software problems is hard to overestimate. A company that specializes in software development for startups may be fine for creating a banking or financial app, but do they have the experience and qualifications to do the level of QA testing required for these applications? There is simply no substitute for a QA testing partner who is committed to best practices, with a global perspective, and who knows exactly how to test across platforms and connections.

Outsourcing makes sense for many financial and banking applications, and there are compelling reasons for offshoring software development for startups. Ukraine is considered one of the best locations for IT outsourcing because it has a track record of high quality software developed there and a highly skilled workforce with a mature IT market. Kiev has been listed as one of the world’s Top 50 Global Emerging Outsourcing Cities and possesses the highly developed telecommunications and infrastructure necessary for outstanding software development for startups.

QArea is committed to delivering leading-edge technology solutions, including solutions for the banking and finance industry, with exceptional quality, style, and time-to-market efficiency. Our goal is to create mutually-valuable, long-term relationships with our partners and customers. We can’t do that without adhering to the highest standards of software development and QA testing in highly demanding sectors like banking and finance. We invite you to contact us at any time to discuss software development or QA testing. However exacting your demands are, we’re ready to exceed expectations.Last summer, a software glitch at Bank of New York Mellon resulted in inaccurate values for around 1,200 mutual and exchange-traded funds. While there’s no good time for a banking software problem, this one happened on August 24, the same day the U.S. markets had their worst tumble since 2011. It took until the following Monday to fix the software.

Check out our related articles:

Banking & Finance App & Software Development

Banking Application Development

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