Why is FinTech so popular?
Financial firms are rapidly using technology to transform their businesses. FinTech refers to various financial technologies used to automate processes in the financial sector, from routine, manual tasks to non-routine, cognitive decision-making. Many areas of finance are subject to disruption, such as payment systems, contract checking, trading, risk management, quantitative asset management, lending, mobile banking, customer retention, and investment banking.
Conventionally, banking was limited to a closed ecosystem with entrée to data in silos. Consequently, the services and products offered were unique to the institution.
With the leap in technology and the evolution of the shared ecosystem, the wave of open banking is gaining prominence and thereby enabling financial institutions to provide more value to customers. It entails providing personalized services, through a shared ecosystem with customer consent and thus, unlocking the vast potential for open banking.
What is Open banking?
Open banking can be defined as an ecosystem that furnishes the end user with data from a Labyrinth of financial institutions via application programming interfaces (APIs). APIs help software or application (app) to communicate and work with another application and seamlessly share information. It is observed that open banking originated as a regulatory initiative and globally got off to a slow start, with low consumer awareness and delayed implementation by banks, contributing to its stunted adoption. However, innovation and digital architecture transformation sparked by Fintech firms may lead to the creation of new business models based on collaboration with financial institutions.
The gateway to monetize the Open Banking Ecosystem
API is a technology-oriented product. However, a strategic shift in the vision of businesses is required to embrace APIs. Initially, financial institutions built APIs for their digital transformation and eventually opened it for larger consumption thereby, leading to monetization in terms of pay-per-use, subscription, data and revenue sharing models. API product management is a relatively new concept in the industry. The sooner organizations realize its benefits and move towards building the right strategy, the more impressive its returns shall be.
Although bank supervisors need to be focused on confirming the safety and of the banking system, they should be proactive in updating the safety and uphold financial stability.
Quality Assurance and FinTech
While you are operating in Fintech services, there are risks that sometimes you cannot contemplate. Fintech firms deal with numerous sensitive data to process and serve. You need to have a secure, seamless, and powerful interface. There is no avoiding it at all.
Testing of these critical business apps is paramount so that you can evaluate the effectiveness and speed to serve better in the market.
- Some of the points worth noting that highlight the significance of testing in Fintech,
- Testing is essential as the Fintech software deals with sensitive data of customers.
- The database of the customers is very complex to handle.
- There are numerous risk factors in dealing through a digital platform.
- Regulatory issues can make the process more complicated.
With these reasons, testing of Fintech apps becomes imperative.
Benefits to FinTech from QA
- Increase in quality at the same time as in parallel to the reduction in the amount of effort and cost spent testing.
- Establishes an upright system of work collaboration between development and testing to capitalize on the benefit of whichever automation strategy.
- Significantly it improves the quality of the software product by adding individuality to the testing process.
- All the Static resource tier, Business logic tier, and Permanent storage tier will be error-free to make your Fintech app seamless for your customers.
- When you implement load-balancing to scale your Fintech App, your app’s performance will increase significantly even at heavier traffic loads.
If it comes to testing; a software is nothing if it does not work in a user-friendly way. Testing is comparatively exclusive because it is inherently destructive. The aim is to force the system or its apparatuses to fail so that the defects that caused the failure can be uncovered and then fixed. In addition to defect detection, testing is also performed to provide sufficient objective evidence to validate confidence in the system’s quality.
As we know, Fintech is an emerging business sector which will continue to grow over time. The financial institution will always be in dire need of efficient software that can ease their customer base. Software testing in Fintech will definitely play a crucial role in catering to their customer an error-free, robust mobile and web app.
We have always believed “quality is built in and not added on.”
At BugRaptors, It’s always our priority to provide the best software testing services.