05 Mar 2019
Published: 31 Jan 2019
Challenges in FinTech and the growing need for QA
Last Updated: 15 Jun 2020
Financial Technology – FinTech for short, describes businesses which offer financial products or services to customers by leveraging technology. These businesses aim to offer new tech-driven financial solutions enabling convenience and superior user experience, and ultimately drive innovation in their industry.
This revolution in financial technology has brought in many new entrants who are redefining the financial services sector. Large, well-established financial institutions and technology giants are focusing to adapt and re-engineer their existing processes to enhance speed, offer better customer experiences and provide differentiated value to customers.
According to the World Fintech Report 2018 by Capgemini and LinkedIn, in collaboration with Efma, more than 90% of FinTech firms said agility and providing an enhanced customer experience are key to competitive advantages. More than 76% cited their ability to launch new products/solutions, and improve existing products or services, as critical to their success.
FinTech applications are diverse and cover a wide variety of financial services. They range from mobile payments to lending, investment, budgeting, consumer banking, insurance etc. with focus on different functions like, digital banking, risk & compliance management, data visualization analytics, security & fraud detection management, and more.
While FinTech revolution is offering a number of exciting opportunities for financial firms, there are a number of challenges that these financial firms are grappling with. Many companies aren’t yet sure on how to deal with the Fintech challenges these emerging technologies bring, for example:
– Large scale integrations and multi-tier functionalities
– Multiple and varied channels/ devices used by end users for accessing applications
– Complex transactions processing lifecycle
– Data confidentiality and integrity threats
– Risk management of complex financial transactions
– Strong regulatory compliance requirements for financial transactions
Quality is the backbone for offering rich customer experiences in the FinTech industry. The industry transformation cannot be achieved unless FinTech companies focus on offering high-end technology products to its end users while giving significance to Quality Assurance across various dimensions of their application/product.
To deliver superior customer service, Fintech companies need to offer error-free functionality, high performance, infallible security, universal compatibility/ accessibility, zero-tolerance compliance and exemplary user experience.
This needs a very customer-centric QA and testing approach so that they address industry’s key challenges. FinTech firms should integrate Quality Assurance within every stage of its product development to achieve the required benefits like:
– Improved user experience and overall quality
– Comprehensive test coverage
– Quicker time to market
– Lower cost of quality
– Regulatory compliance
– Efficient & effective software development lifecycle
Innovative products/services with excellent quality will beat the competition, and definitely help FinTech organizations to improve customer services and gain competitive advantage. This will help financial institutions in their quest for long-term growth.
TestingXperts, with its FinTech Test Center of Excellence (TCoE), DevOps aligned continuous automation testing framework (Tx-Automate) and extensive experience working with companies in BFSI space has helped organizations to succeed in their digital transformation journey. Tx offers a comprehensive range of QA/ testing solutions and helps clients achieve sustainable competitive advantage with superior customer experience.