A Complete Guide to test a Banking Application: BFSI Testing Process and Tips
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.
What You Will Learn:
- How to Testing Banking Applications?
- Banking Application Testing Workflow
- Other Stages in Testing BFSI App
How to Testing Banking Applications?
Let's first understand the characteristics of a Banking application:
- 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
- The 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 the 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
- The functional aspect of the application
- The security aspect of the application
- Data Integrity
- User Experience
Banking Application Testing Workflow
Typical stages involved in testing Banking Applications are shown in below workflow. We will be discussing each stage individually.
1) Requirement Gathering
Requirement gathering phase involves the 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.
Experts are involved in writing requirements on more than one subject as banking itself has multiple sub-domains and one full-fledged 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.
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, etc.
The functional testing of a banking application is quite different from 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 Datatypes
- 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.
Once the Scan is completed, the Scan Report is published. Over this report, False Positives are filtered out and the 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 the propagation of errors.
Rigorous security testing should be done across platforms, networks, and OS.
Other Stages in Testing BFSI App
Apart from the above main stages, there might be different stages involved such as Integration Testing, Usability testing, User acceptance testing, and Performance Testing.
Let us talk in brief about these stages as well:
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.
A banking application serves 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 benefited from the banking application.
Certain periods of time like payday, end of the financial year, festive seasons might bring in change or spike in the usual traffic on the app. Hence, 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
iii) Construction and
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.
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Feel free to share your experience or queries on this topic!