Importance of Performance Testing in the Banking Sector

The banking sector has witnessed a substantial paradigm shift in the way it serves customers; that too, within just over a decade, which has been propelled by the rapid digitalization of banking data.

Commercial banks, belonging to both the public sector and private sector, have been embracing technology to a great extent and have succeeded in bringing complete change to their operational infrastructure and customer service mechanism.

Today, bank customers can go completely cashless in their day-to-day transactions and can access banking services 24 hours a week from the comfort of their homes, all thanks to the pioneering decision of banks to go digital. Additionally, the revolutionary development of open banking technology has made it possible for banks to consolidate and manage customer’s accounts and transactional data in a centralized manner.

It allows customers to avail of banking services and redress issues not only from any branch of the bank from anywhere in the world but also via mobile applications installed on their smartphones.

One should not assume that all these enhancements in the banking sector are achieved and maintained effortlessly. There exists an intricate network of software, data servers, and computer programs, which make it all possible. Let us take the example of any basic customer banking mobile application or popular banking software such as Temenos T24.

An average customer installs a mobile banking application on a smartphone and receives access to mobile banking services such as retrieving account information, making an account to account transactions, managing investments, and portfolios, etc.

However, the satisfaction of the customer depends on three aspects of the banking software: convenience, safety, and speed. The presence of all these three aspects in an application can be ensured only by elaborate digital testing.

Importance of banking application testing

Banking applications are developed by professional coders. However, these applications cannot be released to the public without rigorous digital testing. Different types of testing are conducted on banking software, broadly categorized into functional testing and non-functional testing.

Functional Testing

  • It refers to the examination of the quality of the software from the perspective of the customer.
  • It ensures that once the application is released, the customer is able to access all desired and promised features on a user-friendly interface, without any fear of leaking critical banking information to hackers.
  • This category of banking application testing caters to two aspects of customer satisfaction: convenience and safety.

Non-Functional Testing

  • It refers to the examination of the technical compactness of the application.
  • It looks out for bugs and glitches in the application, which might affect the customer experience in unexpected ways.
  • Non-functional testing also includes the type of testing which reviews the performance capability of the application over various degrees of hypothetical usage. This type of testing is known as performance testing.
  • Non-functional testing caters to the remaining aspect of customer satisfaction: speed.

The importance of performance testing in the case of banking applications

Among all types of testing, performance testing is held with special regards when it comes to banking applications. It is because a banking application undergoes several situations that demand high-performance capability from the software. A banking application must be highly responsive to commands and inputs were given by customers and should also remain stable in all circumstances.

These capabilities can be examined in an application only through the following methods:

  • Load testing: This method of testing involves gradually increasing the load or volume of transactions in the banking software to check its upper tolerance to handle user inputs before it crashes.
  • Stress testing: This method of testing involves increasing the load over the designed tolerance limit to examine the behavior of the application in such an extreme situation.
  • Endurance testing: This method of testing involves putting the application under heavy load for a long time to determine how long the application would remain stable when used overwhelmingly.
  • Spike testing: This method of testing involves the sudden increase of the load or volume of transactions in the software to check its behavior in an unforeseen situation of a large number of users logging in and trying to use it.

All these methods of performance testing help the software developers mark performance limits on the software that inform the same to the banks. Then, the banks set rules regarding the usage of the software like restricting the number of simultaneous users up to a certain limit and restricting the volume of transactions up to tolerance.

It also helps developers comprehend the minimum hardware requirements to ensure the stable performance of the software and inform the same to the banks. It is finally cascaded to end-users.

In this way, performance testing churns out ample information about the software, which can be utilized to make the customer experience satisfactory. Software experts have attributed the groundbreaking success of top mobile banking applications and banking software such as Temenos T24 to the quality of their performance testing. Hence, it is of utmost importance to test your software before releasing it for public consumption.

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My name is Jameson, have worked for the Technology market industry for 4 years. Technology news grasp my attention the most. In early days, I started my journey with an ordinary author. Moving forward with great hard work and passion I achieve a higher position. As I believe in working hard and putting the soul in my work, I have accomplished so much success and place in CodingCurious, and now I have confidence in this, that I am the spin of this network. I have a vision of touching the sky. I wish to see this industry on a global scale one day. My other duties are that I am a contributor and an editor of the technology segment. My work is to do a critical analysis of companies and pick out the most significant information for investor network.