Dzmitry Lubneuski is the CIO at a1qa, a leading pure-play software testing company. He’s a tech expert with a solid 20-year background in QA
The odds of success during digital transformations are low — just three in 10 banks that embark on such journeys will meet their objectives.
Why is it so?
Organizations often face challenges such as complicated legacy systems, infrastructure and cybersecurity risks. Time and cost constraints, skill shortages and regulatory challenges add to the complexity. The introduction of intricate technologies (blockchain, AI, etc.) can lead to significant technical issues. Quality assurance may help ease this complicated path.
In this article, I’ll focus on the importance of technology-driven transformation, risks and ways to mitigate them with QA.
Reimagining Services In The Tech-Driven World
A new generation of banking clients value the ability to perform secure financial operations, access services in different ways, receive product suggestions, obtain quicker customer support or ensure strengthened account protection using biometrics. The path to meeting these customers’ needs lies in technological evolution.
Banks aim to introduce AI, blockchain, RPA, IoT, the cloud, advanced analytics to support the smooth operation of mobile banking products, loan software, smart ATMs, payment processing solutions and other financial IT products.
Bank of America has incorporated its AI-driven virtual assistant into its digital services, helping over 42 million customers with managing accounts, paying bills, and more. Revolut offers completely digital financial services without the need for traditional branches, enabling its users to benefit from multiple features.
Such transformations can deliver the following advantages:
• Increased Clientele: Let’s be honest. Who wants to visit a bank nowadays when it’s possible to download an app in a minute and perform all necessary operations there? Banks offering round-the-clock access to their services are more likely to acquire new clients and ensure their retention.
• Optimized Workflows: The introduction of digital workflows and widespread automation enables quicker and smoother performance of routine banking processes. This approach frees up resources, enabling employees to focus on strategic priorities.
• Improved Adaptability: When financial institutions decrease reliance on legacy code, they can more easily adjust their operations to new market requirements and introduce advanced banking solutions, such as virtual assistants, open banking, biometrics and QR code payments.
• Tailored Service: By analyzing data on customer actions, preferences and spending patterns, banks can provide personalized offers that align with individual needs and enhance customer satisfaction.
• Enhanced Risk Management: With AI and other advanced technologies, banks can leverage the results of enhanced big data analysis to delve into current trends and better defend against risks like fraud.
• Reinforced Security: Modern tech equips financial institutions to better prevent unauthorized actions, apply biometrics instead of traditional passwords and safeguard sensitive data through encryption.
Bumps In The Road To Prep For
Digital transformations aren’t all smooth sailing due to several critical challenges:
• Security Loopholes: Banks become more vulnerable toward fraudulent attacks aimed at stealing sensitive client information. In addition, banks must ensure compliance with strict legal measures for data security, such as PCI DSS, ISO 20022 or ISO/TC 68.
• Operational Risks: Obsolete IT infrastructure challenges banks to adopt cutting-edge technologies to outmaneuver competitors and ensure all systems work correctly without unexpected disruptions.
• Customer Expectations: End users seek high-quality service that enables them to quickly resolve issues or meet pressing needs. These expectations are increasing, pushing banks to deliver seamless access to personalized offerings across platforms—a challenge that requires constant innovation and adaptability.
Supporting Banks On Their Journey
Organizations may want to pay attention to the following software aspects:
1. Reliability
Banking software is prone to vulnerabilities such as weak authorization or authentication, insufficient verification for obtaining privileged access, hacking risks and others. Recent data exposures are tracked and reported here.
Companies may create a secure SDLC by embedding security checks at each stage of software development and combining them with OWASP-based penetration testing and vulnerability assessment. With this, they can mitigate the risk of security gaps and combat cyber fraud.
2. Performance
It’s commonly said that it’s the first 5 seconds that determine how an IT product will be perceived, with loading speed playing a crucial role in the lead-to-sale ratio. For banking software, this means the ability to handle numerous high-volume transactions during peak times. To achieve this, organizations should consider performance verifications and monitoring to maintain uptime, reliability, and rapid responsiveness.
3. Overall Operation
Financial institutions usually strive to automate daily operations, implement emerging tech, migrate to the cloud and establish diverse digital channels. Banks may face issues of diverse severity, such as software bugs, inconsistent functionality and downtime, all of which can spoil the end-user experience.
Users might encounter incorrect outputs or broken features that erode trust in the system. Organizations may apply functional testing to confirm new functionality is ready for a release and ensure error-free operation of already existing features after code alterations.
4. Migration
Banks transfer their data and software to the cloud environment or to new systems. If issues arise during this process, sensitive business information may be lost. To mitigate risks, companies may think of migration testing. It helps ensure that data has been moved fully to a new system and confirms that the software performs at the same elevated level without data issues.
5. Integration
Banks need to ensure that software solutions correctly work together. Integration verifications may help organizations to eliminate any compatibility or data transfer problems and confirm that implemented IT products meet their objectives when integrated with each other.
6. Compatibility
Smooth software functioning across various devices, browsers and OS helps ensure that end users get an equally seamless experience across websites, mobile apps, POS devices or ATMs. Companies may conduct cross-platform or cross-browser testing and analyze the software’s operation in different environments
When deadlines are tight, organizations can also consider automating quality control workflows, which helps expedite QA, curtail the likelihood of human errors and enhance precision.
Closing Thoughts
Embracing digital change can help streamline critical operations, attract new customers through personalized experiences and ensure business continuity. While this process is complicated, problems can be mitigated. QA plays a key role in improving software reliability and increasing stakeholder confidence.
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