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Challenges in Fintech and the growing need for Quality Assurance

Posted by TransformHub Insights Team April 2 2022

FinTech (financial technology) refers to enterprises that use technology to provide economic goods or services to clients. These companies want to offer innovative tech-driven financial solutions that provide simplicity and a better customer experience and stimulate industry innovation.

Many new entrants are reshaping the finance industry due to the financial technology revolution. Large, well-established companies that have provided technological behemoths are concentrating on adapting and re-engineering their existing processes to improve speed, create better customer experiences, and distinguish their value to clients.

Businesses are seeking to enhance and optimize their banking services dramatically. As a result, how can organizations engage and improve while interacting with fintech applications and staying competitive in the financial services sector? - Trends are being observed.

Face and fingerprint scanner features are built into software by developers, which simplify the interaction with services. Furthermore, user engagement rises considerably because of the personalization of client communications and omnichannel accessibility.

Data integrity, personal information protection, data confidentiality, and security problems are all areas where a financial app may be killed quickly. Therefore, the importance of strong QA in Fintech cannot be overstated, given the high stakes.

Main Challenges in Developing Fintech Applications

Fintech application testing and development necessitate software testers who are well-versed in the fintech industry. Fintech apps, in addition to normal app development, must conform to a variety of compliance norms and regulatory standards that vary by market. Because specialist skills can be challenging, some businesses may prefer to outsource aspects of their development or quality assurance processes to firms with more experience and skill in these areas.

In addition to these legal obligations, there is a strong focus on cybersecurity and the protection of personal consumer data. For example, fintech apps deal with highly confidential financial data. Data integrity and security are critical because a consumer who feels they have lost a lot of money (whether or not they have) would exit an app fast if it appears to be insecure or hacked.

Fintech apps have additional difficulty in data processing that is both speedy and accurate. A fintech application frequently interacts with a slew of external APIs and microservices, all of which must be handled appropriately and smoothly. When utilizing in-house microservices, this can be tough. 

Still, it gets even more complicated when using third-party libraries and micro-services, which might produce unexpected information that must always be treated gently. Because all of this data acquisition must be made in large batches and in real-time, any error not identified during QA might have severe consequences in a production setting.

What is the role of quality assurance?

Quality assurance services (QA) is a procedure for preventing software flaws and defects. The goal is to generate the best product possible throughout development by improving the output quality through improved processes. QA testing companies assess development plans to identify their efficiency and effectiveness and their conformity with the end product's quality requirements.

Due to the very delicate nature of the information and assets utilized by Fintech software, Fintech has exceptionally high-quality criteria. Therefore, when it comes to Fintech goods, the role of QA testing services is critical. It must ensure that the procedures used to create such goods result in functional, secure, usable, and dependable applications.

Why do you need QA, and How Can It Save Your Business?

When people's data and money are on the line, QA testing isn't simply "nice to have" – it's required. Apps must be user-friendly, practical, agile, and secure. The quality assurance staff must be aware of financial organizations' difficulties. They must "scrutinize" economic, technological systems and software during the software testing process to find faults, possible security threats and breaches, and other defects. Users will enjoy a safe and secure experience while utilizing Fintech services and products due to this.

Whether companies hire software testers in-house or hire them out, the procedure should be carried out at all stages of the product development cycle. QA testing for software mainly evaluates:

  • Security: FinTech apps are put through thorough audits by software testers to look for any areas of hazard or weakness.
  • Compliance: Financial firms are mainly subject to tight standards set by nations, and software testers constantly assess whether a particular product is compliant.
  • Data Security: During the testing process, it's critical to protect and manage sensitive data.
  • Usability: Fintech companies place a premium on the user experience, and software quality testers guarantee that the app is simple.
  • Accessibility: Quality assurance services providers consider people with disabilities and special needs, such as cognitive, auditory, visual, or physical limitations, while assessing usability criteria.

Why fintech software testing must be done differently

Fintech testing necessitates a far more comprehensive and extensive test suite than many other forms of software. In the case of a finance app, "good enough" is not enough. More unit tests, API tests, and E2E tests are all required by a higher testing level. However, merely having more difficulties isn't enough. 

These tests must be helpful, too; simply writing more will not suffice. Low-value tests will bloat your test suite and slow down your deployment, so each test (especially E2E tests) must be carefully chosen with a single goal in mind: to meet user requirements, comply with regulations, demonstrate a module's correctness, and demonstrate graceful data handling when a component fails.

The desire to move quickly counteracts this. Software testing vs. software development may be compared to a tug of war. Fintech testing necessitates a level of detail not seen in other types of apps, which is why programmers and executives would like to move quickly and break into new areas. 

The financial sector has been eager to integrate automated testing and AI and ML-based toolsets and services to improve the prioritization, runtime, and maintenance efficacy of their E2E test suites.

What does QA testing assess and measure?

Finally, quality assurance services companies and services help ensure that Fintech apps and products are error-free (to the degree feasible), dependable, and secure. Whether Fintech companies utilize in-house or outsourced software QA testers, the approach should be followed at every level of the product development process. This allows developers to catch errors early in the design process and fix them.

The following should be included in software quality assurance services:

  • Security

Sensitive data, such as private, commercial, and banking data, is used and preserved by fintech applications. Because hackers may try to get this information, quality assurance engineers must put programs through thorough testing to find any areas of weakness or danger.

  • Regulation

The nations in which financial institutions operate place strict laws and regulations. Quality assurance tests must progress in lockstep with these regulations, ensuring that offered things are always compliant.

  • Usefulness

The quality of a platform is determined by how it is used. Therefore, consumer experience is essential to fintech companies, and a software quality tester must ensure that the product is useable by non-technical consumers. They should put it through its paces and, if feasible, test it on real people.

  • Performance

Functional testing is an integral part of any quality assurance testing plan. Due to the sensitive nature of Fintech software, testers must extensively examine all potential risks, developments, stresses, and interfaces with other applications and system elements. This procedure ensures that the product meets the requirements for safe functioning.

  • Ease of access

While "typical" usability criteria should be included in quality assurance services, they should also account for users with impairments and special requirements, such as visual, cognitive, auditory, or mechanical restrictions. Testers must ensure that the product satisfies this criterion by verifying that it is usable by all users.

Benefits of Great QA Testing for Fintech Applications

There are various advantages to a well-thought-out and executed QA testing procedure. First and foremost, the app's general quality and user experience have improved. Second, fintech applications with rock-solid QA can potentially be more lucrative than those without, especially when combined with a faster time to market. Finally, a sound QA testing system can save a fintech app time and money, given how time-consuming QA testing may be.

Identifying what needs to be tested and adequately breaking down unit tests into separate categories that can be performed at different periods and frequencies throughout the SDLC may deliver all of the benefits of rigorous testing without slowing testing or app development. 

Consequently, the app is more reliable and has a shorter time to market while still satisfying the expectations of the enormous and constantly changing financial sector.

How Can We Help You?

TransformHub committed BFSI tests solution focuses on offering comprehensive solutions for FinTech apps, including Non-Functional Testing (Security Testing, Performance Testing, and Usability Testing), Functional testing (Test Automation and Manual), and test advisory, and quality assurance services. 

Our experts completely understand the nuisances of BFSI applications involving legacy systems, asynchronous messaging, voluminous test data, multiple subsystems, diverse data sources, and complex authentication systems.

Our BFSI Testing services are built to ensure the right competencies, tools, methodologies, infrastructure, frameworks, business scenarios, or test cases. So, you can contact us at +65 31384660 or email us at for further discussions. 



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