How to Test Banking Applications

Banking applications are one of the most complex applications in today’s software development and testing industry.

What makes Banking application so complex? What approach should be followed to test the complex workflows involved in banking applications?

In this article, we will be highlighting different stages and techniques involved in testing Banking applications.

How to Test Banking Applications

The characteristics of a Banking application are as follows:

  • Multi-tier functionality to support thousands of concurrent user sessions
  • Large-scale Integration: Typically, a banking application integrates with numerous other applications such as Bill Pay utility and Trading Accounts
  • Complex Business workflows
  • Real-Time and Batch processing
  • High rate of Transactions per seconds
  • Secure Transactions
  • Robust Reporting section to keep track of day to day transactions
  • Strong Auditing to troubleshoot customer issues
  • Massive storage system
  • Disaster / Recovery Management.

The above listed ten points are the most important characteristics of a Banking application.

Banking applications have multiple tiers involved in performing an operation. For Example, a banking application may have:

  • Web Server to interact with end users via Browser
  • Middle Tier to validate the input and output for web server
  • Data Base to store data and procedures
  • Transaction Processor which could be a large capacity Mainframe or any other Legacy system to carry out Trillions of transactions per second.

If we talk about testing banking applications, it requires an end to end testing methodology involving multiple software testing techniques to ensure:

  • Total coverage of all banking workflows and Business Requirements
  • Functional aspect of the application
  • Security aspect of the application
  • Data Integrity
  • Concurrency
  • User Experience

Typical stages involved in testing Banking Applications are shown in below workflow. We will be discussing each stage individually.

Testing Banking Applications

1) Requirement Gathering:

Requirement gathering phase involves documentation of requirements either as Functional Specifications or as Use Cases. Requirements are gathered as per customer needs and documented by Banking Experts or Business Analyst.

Requirement Gathering

Experts are involved in writing requirements on more than one subject as banking itself has multiple subdomains and one full fledge banking application will be the integration of all these domains.

For Example, A banking application may have separate modules for Transfers, Credit Cards, Reports, Loan Accounts, Bill Payments, Trading Etc.

2) Requirement Review:

The deliverable of Requirement Gathering is reviewed by all the stakeholders such as QA Engineers, Development leads and Peer Business Analysts.

Requirement Review

They cross-check that neither existing business workflows nor new workflows are violated. All the requirements are verified and validated. Follow up actions and requirement document revisions are done based on the same.

3) Business Scenario Preparations:

In this stage, QA Engineers derive Business Scenarios from the requirement documents (Functions Specs or Use Cases); Business Scenarios are derived in such a way that all Business Requirements are covered. Business Scenarios are high-level scenarios without any detailed steps. Further, these Business Scenarios are reviewed by Business Analysts to ensure all of the Business Requirements are met. It is easier for BAs to review high-level scenarios rather than reviewing low-level detailed Test Cases.

For example, a customer opening a Fixed deposit on the digital banking interface can be a business scenario. Similarly, we can have different business scenarios related to net banking account creation, online deposits, online transfers, etc.

4) Functional Testing:

In this stage, functional testing is performed and the usual software testing activities are performed such as:

Test Case Preparation:

In this stage Test Cases are derived from Business Scenarios, one Business Scenario leads to several positive test cases and negative test cases. Generally, tools used during this stage are Microsoft Excel, Test Director or Quality Center.

Test Case Review:

Reviews by peer QA Engineers

Test Case Execution:

Test Case Execution could be either manual or automatic involving tools like QC, QTP or any other.

The functional testing of a banking application is quite different from the ordinary software testing. Since these applications operate with customer’s money and sensitive financial data, they are required to be tested thoroughly. No important business scenario should be left to be covered. Also, the QA resource who is testing the application should have the basic knowledge of banking domain.

5) Database Testing:

Banking Application involves complex transaction which is performed both at UI level and Database level, Therefore, Database testing is as important as functional testing. The database is complicated & an entirely separate layer in the application and thus its testing is carried out by database specialists. It uses techniques like:

  • Data loading
  • Database Migration
  • Testing DB Schema and Data types
  • Rules Testing
  • Testing Stored Procedures and Functions
  • Testing Triggers
  • Data Integrity

6) Security Testing:

Security Testing is usually the last stage in the testing cycle. A prerequisite to commencing security testing is the completion of functional and non-functional testing. Security testing is one of the major stages in the entire Application testing cycle as this stage ensures that application complies with Federal and Industry standards.

Due to the nature of the data they carry, banking apps are very sensitive and are a prime target for hackers & fraudulent activities. Security testing makes sure that the application does not have any such web vulnerability that can expose sensitive data to an intruder or an attacker. It also assures that the application complies with standards like OWASP.

In this stage, the major task is the whole application scan which is carried out using tools like IBM AppScan or HP WebInspect (2 Most popular tools).

Once the Scan is completed, the Scan Report is published. Over this report, False Positives are filtered out and rest of the vulnerabilities are reported to Development team so that they start fixing the issues depending on the severity of each issue.

Penetration testing is also done at this step to reveal propagation of errors.

Rigorous security testing should be done across platforms, networks, and OS.

Some Other Manual tools for Security Testing used are: Paros Proxy, Http Watch, Burp Suite, Fortify tools Etc.

Apart from the above main stages, there might be different stages involved in Integration Testing, Usability testing, User acceptance testing and Performance Testing.

Let us talk in brief about these stages as well:

Integration testing

As you know that in a banking application, there might be several different modules like transfers, bill payments, deposits, etc. And thus, there are a lot of components developed. In integration testing, all the components and integrated together and validated.

Usability Testing

Usability Testing

A banking application serves to a wide variety of customers. Some of these customers might lack the skills and awareness required to perform the banking tasks over the app. Thus, the banking application should be tested for simple and efficient design to make it usable across different groups of customers. The simpler & easy to use interface is, the higher number of customers will be benefitted from the banking application.

Performance Testing

Certain periods of time like payday, end of financial year, festive seasons might bring in change or spike in the usual traffic on the app. Hence, a thorough performance testing should be done so that customers don’t get affected by performance failures. A significant example from the past where bank customers got personally affected due to performance failures is NatWest and RBS cyber Monday IT outage in which the customers had their debit and credit card got declined transactions across shops in the country.

User Acceptance Testing

This is done by involving the end users to ensure that the application complies with the real-world scenarios and will be accepted by users if it goes live.

In today’s scenario majority of Banking Projects are using: Agile/Scrum, RUP and Continuous Integration methodologies, and Tools packages like Microsoft’s VSTS and Rational Tools.

As we mentioned about RUP above, RUP stands for Rational Unified Process, which is an iterative software development methodology introduced by IBM which comprises of four phases in which development and testing activities are carried out.

Four phases are
i) Inception
ii) Collaboration
iii) Construction and
iv) Transition
RUP widely involves IBM Rational tools.

In this article, we discussed how complex a Banking application could be and what are the typical phases involved in testing the application. Apart from that we also discussed current trends followed by IT industries including software development methodologies and tools.

Further Reading

In case you have queries, comments or any unanswered questions please post it below I will be happy to answer those.

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121 Comments on “How to Test Banking Applications

  1. Security testing is the crucial part in testing any banking application. The tools u mentioned are really helpful and I know are used in many high end banking application testing.

    Nice article.

  2. What a nice article. Thank you very much!

  3. Testing banking applications sounds more interesting and it’s massive system. But i am still a greenhorn in testing so i would like to know that what is the difference between business scenario and use case?

  4. Business Scenario is a High Level Scenrario from which Test Cases are Written.

    Lets take an Example of ATM.

    Test Scenarios : Withdraw Cash , Balance Enquiry Etc.

    Test Cases would be with detailed steps and covering negative and positive condition.

    Test Case 1 : Withdraw valid Amount
    Test Case 2 : Withdraw Invalid Amount
    Test CAse 3 : Withdraw 0 INR Etc.

    With Detailed Steps

  5. Whereas a Use Case contains User Actions and FOrmat is like :

    1. Pre Condition : ATM should be up and Running , Use has an ATM Card

    2. Basic Flow:

    * User Inserts ATM Card
    * User Enters PIN
    * User selects Enter
    * User selects Withdrawl
    * User Enters Amount
    * User Confirms
    * User Selects YES for Reciept
    * User Collects Cash
    * User Collects Reciept
    * User Collects Card

    3. Exceptions :

    * User enters Wrong PIN
    * User enters Wrong Amount
    * ATM is out of Cash
    * Any Other

    This is an Use Case from which Business Scenarios and Test Cases are Derived

  6. HAI,This is a brilliant article and really appreciable.Few
    Questions :1) What are the documents Used and produced in requirements gathering,review and business scenario preperation phases? 2)Are functional specifications derived from business scenario? or Are Business scanarios derived from Functional spec? Pls let me know.

  7. This article is good and definitely help me in testing of banking products

  8. It is really very web site for information gathering & acquire & great job.

  9. 1) What are the documents Used and produced in requirements gathering,review and business scenario preperation phases?

    Requirement gathering may use Tickets/Service Requests/Change Requests generated by Internal and External Customers as Input and Output of Requirement Gathering are Specs , Use Cases and Mock Screens

    2)Are functional specifications derived from business scenario? or Are Business scanarios derived from Functional spec?

    Its other way round Business Scenarios derived from Functional Specs and is done by QA Engineer , Domain knowledge most important skill needed in Business Scenario Prep.

  10. Really very very informative…’s really helpful to the guys who are new to the banking domain…..Good Article

  11. very informative..thanks

  12. Really nice article it is really helpful for me
    Thank you….

  13. Really Nice article.
    Can any one tellme
    how to create or get the logs?
    what is cache memory?
    In security testing means only authetication or others also?
    while doing testing I executed application in different platforms like window 2003 and AIX .
    why we do that and even what is the difference between them?

  14. What is requirment analysis?

  15. Very Nice article really.

  16. @Mah

    You are correct , Thanks for correcting the Typo

  17. I don’t see what makes your article specific to banks. this is just a summary of methods.

    I am disappointed

  18. @ Abdelkrim

    Nothing specific to banks , that is correct.

    The aim of the article is to give an Overview of how testing for Financial Apps is carried out and what is followed diffrently then a Generic Applicaiton.

    However , diffrent Projects may follow diffrent Approaches.

  19. what is Database testing? and how to make in MS-access ?

  20. Hi Vishal

    There is an Article on DB Testing on this Forum …please read that for more details.

  21. nice article and is very helpfull for the new comers in banking secter for testng.

  22. Good article.

  23. Nice article .Thank u so much,
    Can u tell me hw integration testing is done (practically)for banking application

  24. this is nice article and easily understand to who are new in banking sector for testing …….

    keep it up

  25. A good article which is very informative and easy to understand.

  26. Hi, I just started learning Banking applications. This post really helps me.
    I want to know about Cards and Payments options used in a Banking application.

    Thanks in advance !!!

  27. i am unable to find scenarious from functional specification document is there any methods to identify scenarious from functional specification document

  28. Nice article, Presently i am working in retail domain as qa . I am interest in banking domain,can you please tell me how Can I improve banking domain knowledge because I do not have enough knowledge about it

  29. What No.of tools use in banking application software testing ?

  30. I am an official with one of the top public sector banks. I have been working in many softwares like bankmaster, banc@24, exim bills, mercury (Forex), SWIFT etc. Now I prefer to switch over to IT industry in the area of testing. Can u please tell me Whether I am already exposed to testing (User acceptance)? If so, How I can project the same in my CV?

  31. Very nice article on banking application. helpful to the readers.

  32. hi this article is just a summary of Testing methods and not for specific Banking Project…..

    I am disappointed

  33. For Banking Application testing,Tester must Banking domain knowledege. Tester must have to relate the day to day banking activity and logic while testing the Banking Application.

  34. It’s a very nice article on banking application. Its helpful to the every readers/people belongs to same domain and different domain people who are wants to change the domain.

  35. HAI…its very nice article and i hope that it wil be very helpful for freshers/others….

  36. Structured, informative article. Could you let me know how to frame E2E test cases for modules related to core banking application & associated applications connected to it?

  37. Hi Mohit,

    Can you take a real time example and explain me the flow of testing for any banking application like for example online payment system or any other application. I am a fresher in software testing and i need your help in understanding how the projects are handled within a team in a banking environment

    Thanks in advance!

  38. Its really nice article for those who have just entered in Banking domain

  39. can u provide us with some examples of business scenario preparations from business requirement documents by QA team

  40. Hi Mohit,
    Do you have any idea about finacle application testing?

  41. Hi,

    Where do we get std spec documents for financial applications?

  42. Hi,

    Where do we get std spec documents for financial applications?

  43. I am 4+ yrs of experienced testing professional,looking for a job at Bangalore it self?Can anybody help me to get the same?

  44. Hi..Can anyone help me out…
    I want to know how stubs are actually used for testing banking applns in real time.. Will we have real database to check or does this have any thing to do wiyh these stubs or drivers?

  45. I would be happy if somebody could help me with this query.

  46. I am in the teaching field for the last 20 years teaching IT in schools. I have a fair knowledge in SQL and java. Recently underwent training in QTP and QC. I would like to shift(transition) to System testing or Coporate learning. Can anyone pl guide me as to how to build my career toward this goal?

  47. I am 2+ testing professional, i am looking for job change, can anyone please help in this regrad, my phone numbers: 09035532329

  48. This article is really nice….

  49. Hi,
    Nice one. One quick query. Why Security testing comes before UAT? why not after UAT testing?


  50. Can u provide some test scenarios for bank application

  51. Hi ,

    I have worked in 2 projects for banking and this article is really helpful in briefing the testing in financial systems. It very simple and easily explained … Really appreciate it :)

  52. Can any one describe end to end testing in banking application

  53. this article really very helpful for banking knowledge

  54. Please send me how to write the testcases in retailbanking application domain

  55. I like her

  56. which is the best site for prepare the banking application in software testing

  57. please tell me how to write Test cases about Banking Domain.

  58. Good one……..

  59. Informative………

  60. @sdf

  61. send me some examples in banking applications

  62. this is very good article and very useful. send some scenarios related to banking application.

  63. thanks for the article. please post some test cases related to banking sector.

  64. hi all, any guide for billing testing? thanks

  65. Very nice article. It gave me an over view to prepare for my project .Iam trying hard to put my foot in to the testing field.Can you also give me an over view of how
    Health Insurance domain ,auto insurance domain,general motors work’s.It would be huge help.
    Thank you

  66. Hi sir ,I am a fresher, I wanted to work on some projects and put it in my resume, i have planeed to work on a project “Online Banking for Retail Customers” module is to make payment. give me some ideas how to proceed with testing


  68. This process resembles waterfall model. Though arrows are not specified. Truth of reality is that all stages are Agile and TDD. I feel platform testing (Linux,windows,Symbian etc.) is also part of whole process. Profit to risk ratio is also calculated.

  69. Is there any particular exams that one could give in order to get a “Certification” in Banking domain?

  70. sir i need some sample resume for the experience of 2.3 years also i want the project description for online banking as a test engineer

  71. very nice article it is very useful

  72. Hi sir I am a fresher, I wanted to work on some projects and put it in my resume, i have to work on a project “Online Banking” module is to make payment. give me some ideas how to proceed with testing

  73. Sir,

    I am a fresher i want to know the different domains in testing for my career growth.

    Can you please explain some of the modules in Banking Domain.
    Can we check that manually?if yes,please explain how?

  74. Can you explain the complete testing with an real time application and test cases

  75. Hi,

    I am working in energy domain for the past 7 years. I want to switch my career in other Domains like Banking, Healthcare.
    Please give me a suggestion how to change??

  76. Hi,

    I am working in energy domain for the past 7 years. I want to switch my career in other Domains like Banking, Healthcare.
    Please give me a suggestion how to change??

  77. hi,
    nice article can you please send banking related qtp scripts, manual testing projects for writing test cases, scenarios,… my mail id-“”

    thank u sir..

  78. hi,am a fresher.please help me out.what is system integration testing?who does it manual or automated tester ,if then how in banking or finance application

  79. Sir, I wanted to work on some projects and put it in my resume, i have to work on a project “Online Banking” module is to make payments.Please can you please send banking related qtp scripts, manual testing projects for writing test cases, scenarios, and other support docs.
    Thanking You

  80. Hellosss Guyzz,
    Those have experience in banking domain, could you please solve few interview questions for me.

    1. List Security Testing Scenarios and How to test using open source tools?
    (I already know that there should be padlock,https:// and disable back/refresh button)
    2. Database Testing Scenarios and list queries that a tester executes?

    Thanks a lot

  81. Hi frnds gud eveng to one an all who involved in this posting the opinions before asking my query i request to all to give your valuable advice without fail my queryis i am about 5 n half yrs got experienced in the qc dept as a testing engineer on core field now planning to shift to software testing i passed my graduation in 2007 how should i forward my resume as a fresher or exp.if not so can i get any real time project pl guide me.

  82. which model(sdlc) is used in banking project

  83. its very nice and useful information to whose doing testing and who will be done testing job. it is all purpose .

  84. Really cool stuff. Whenever I have free time, I come here and explore. Thanks for the great content.

  85. good stuff for beginners

  86. Good stuff for begineers and very useful for me

  87. I’m doing software testing course.getting a testing job in banking domain is it that much difficult?

  88. Above articale is very knowledgeable

    Can anyone send me Banking domain Project Detail and
    easy understandable with sample documents on my email


  89. very informative article to know about various types of testing. Another good resource would be as it give a good foundation on banking domain

  90. very informative article to know about various types of testing. Excellent information

  91. Hi,Thank u.It is very useful.
    Could u please tell me how to start the scenarios,cases,logs etc,,,

  92. can anyone help me out.. test cases for “contactus” page in bank

  93. Hi Team,

    I am working in energy domain for the past 3 years. may i know test cases of operational issue after ATM switch magaration. Kindly provide me Test cases of ATM operational issue or its solution

  94. Worthful!
    This is what every newbie wants to get his concepts cleared at one stroke. @Mohit , Good work. Keep us posted.

  95. Hi Team

    Please help me How to test NEFT and RTGS . Please proved step by step instruction.Also which is the best site for prepare the banking application in software testing

  96. Great Article. Need some improvements.

  97. Hai ,very nice article .i have also one question
    How to write regression test case for banking application??

  98. how to write a test cases for leave application form

  99. Hi ,
    Currently am residing in US.I don’t have any experience in IT field.I went through some desi consultancy and they put fake experience in my resume and marketed my resume that i had 6 yrs experience working in financial domain.I have undergone a 3 months software testing course in US.But i don’t have real time experience.Is it hard for me to work in financial domain without prior experience?pls help me friends…

  100. Nice Article. Thanks for giving tools for security testing

  101. Thank you for your article. Its very useful for beginners.

  102. Superb!!!! Very helpful

  103. @gayathri,
    You will face the following issues.
    1) You will be considered as a 6 year experienced and the level of questions asked in the interview will be too high..Three month of course will give you just an overview of basic testing concepts..The actual testing process is way too different.
    2) In case you crack the interview and get a job you will not be given any kind of training.The expectations will be too high…and it will be difficult to meet those expectations.
    What i suggest is don’t show 6 years of experience. Make it to max 2 or 1.8.It will be pretty easy for you to face the interview…You might get less package in the beginning but surely this will give you an opportunity to gain knowledge..


  104. hi team,

    if assume banking application we are transfers the amount
    the process is
    1.login with user details
    2. funds transfer next
    3.already added account select
    4. amount
    5.text box
    6.check the accept the terms and condition
    7.enter the password
    this is the flow of application in this case what is the end to end testing and also backend what will happen pls tell me

  105. can you please share banking domain most interview questions and answers?

  106. please anyone share banking domain related docs. which will be useful to manually test banking applications. i.e. how to test funder trfr module end to end

  107. Hi ,

    Need to know how Banking and financial services applications captures Country Code data and currency code data via API integration

  108. Kya koi muje Manual testing me job dilwa sakta h?? , i can pay for this

  109. hello, this is my email id. plz send me the testcaes related to funds transfer, customized bank statement and account creation.

  110. good article

  111. Hi Team

    Please help me how to prepare UAT script to test General Banking transactions in the banking application.

  112. SI No Internet Banking
    1 Verify the bank website URL.
    2 Verify if the bank website URL has HTTPS on the address bar and in the URL.
    3 Verify if the bank website login page does not appear forged.
    4 Verify if the bank login page has username and password.
    5 Verify the username and password are being accepted or not.
    6 Verify that user with invalid password is not allowed to login.
    7 Verify that if either of the username or password is blank, user is not allowed to login. User should be given an alert also.
    8 Verify that after repeated attempts to login with incorrect password( as per the limits), user should be blocked.
    9 Verify if the SMS authentication is triggered after login.
    10 Verify that user is allowed to change password
    11 Verify if the user is redirected to the dashboard after passing all authentication processes.
    12 Verify if the user has access to the online money transfer feature.
    13 Check if the user can transfer funds option is available during specific time period (9 am to 5pm).
    14 Check if the fund transfer option shows notice for off-business hours transaction.
    15 Verify if the user can add the beneficiary.
    16 Verify if the beneficiary details can be verified.
    17 Verify that user is able to add decimal number into amount ( limited by 2 numbers)
    18 Verify that user is not able to add negative number into amount field.
    19 Verify that user is allowed to transfer money only if there is proper account balance.
    20 Verify that there is a confirmation check for financial transactions
    21 Verify that user is given an acknowledgment receipt upon successful financial transaction.
    22 Verify that customer is able to send money to multiple people
    23 Verify if the fund transfer option allows NEFT or RTGS option for nationalized money transfers.
    24 Verify if the fund transfer page asks for beneficiary name, IFSC code, bank name and fund amount and purpose of transfer.
    25 Verify if the fund transfer page asks for PAN number if the amount of funds gets over 50k.
    26 Check if the fund transfer page has an 2-step authentication before you finalize transfer.
    27 Check if the inter bank fund transfer happens instantly or not.
    28 Check if the amount of time it takes for the funds transferred between the in-business hours.
    29 Check if the amount of time it takes for the funds transferred between the off-business hours.
    30 Check if the amount transferred notification is sent to sender and receiver.
    31 Check if the amount gets transferred to the exact person mentioned in the beneficiary.
    32 Verify that time-out feature is implemented

  113. if some can help me with Mortgage Application / banking
    Test cases , UAT test cases . And sanerios

  114. Hi,
    I have worked in Insurance Domain throughout where I have dealt with modules viz New Business, Underwriting, Admin, Commissions, etc. and this is standard in all the admin systems (read applications).
    I would like to know if there is any such standard or best practice that Banking Domain follows.


  115. Can anyone send me Banking domain Project Detail and
    easy understandable with sample documents on my email is


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