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Importance of QA Agency for FinTech Application Testing

Pratik Patel
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Pratik Patel
  • Jun 3, 2024
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    5 min read
Importance of QA Agency for FinTech Application Testing
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The Financial Technology (FinTech) sector is rapidly growing, redefining how we manage money. With the global market projected to reach $2 trillion by 2030, FinTech applications handle our most precious asset—money. These apps manage sensitive financial data and transactions, requiring top-notch security and reliability. Even minor glitches can erode user trust, causing financial losses and damaging reputations.

Let's look at a real example: RapidTrade, a FinTech startup offering a stock trading app. They were excited to launch their app. But their internal testing focused mainly on making sure the features worked correctly. They missed a crucial security flaw. Which could have resulted in a data breach and financial losses for their users.

This is where a reliable Quality Assurance (QA) agency steps in as your guardian of trust. By employing rigorous testing methodologies, QA agencies act as a safety net, ensuring your FinTech app is robust, secure, and compliant with regulations. Like RapidTrade saved by the QA agency, They brought a specialized QA agency on board to conduct comprehensive testing and they found out the critical bug that allowed unauthorized access to users accounts under specific circumstances. This built trust and confidence, leading to a successful app launch and positive user reviews.

 Let's delve deeper into how a dedicated QA partner empowers your Fintech application to succeed.

Ensuring Regulatory Compliance

FinTech application operate in a world of rules and regulations. Just like lending firms need to follow strict guidelines to protect your data and ensure fair lending practices, FinTech application also have to comply with these regulations.

Conducting Compliance Testing: Since QA agencies are conscientiously involved with legal frameworks, they are always familiar with policies like GDPR, PCI DSS, SOC and SOC ll, and AML/KYC. While they can offer continuous compliance testing to prove your application meets these standards, they may not. Now let’s analyze these categories and subcategories in detail.

  • GDPR Compliance
    Protecting EU residents’ identity through intercepting legal data protection and privacy standards in processing personal data.
  • PCI DSS Compliance
    Evaluating measures that need to be taken to ensure security of credit card transactions and the reliability of data that relates to holders of credit cards.
  • AML/KYC Compliance
    The measures that need to be included in the overall scheme are: procedures of customer identification and verification; understanding customer transactions and behavior analysis; and the measures to report possible suspicious activities.
  • SOC, SOC II
    SOC ensures control over financial reporting and SOC ll has mainly focused on security, privacy, integrity, and processing.
  • Maintaining Audit Trails
    They assist in keeping records and tracking progress, as well as keeping extensive records, something that is helpful in the case of registering with a regulatory body.

Let’s take a real example for better understanding:

The Paytm Payment Bank was closed on March 15, 2024. The Reserve Bank of India (RBI) ordered the closure of the account due to non-compliance with KYC regulations and other necessary processes. The RBI was prompted by worries about money laundering and dubious transactions involving hundreds of crores of rupees between Paytm wallet and its obscure banking division. An analyst estimates that there are roughly 35 crore e-wallets held by Paytm Payments Bank. Of these, roughly 4 crores would be operational with either no balance or a minor balance, and about 31 crores would be dormant as these dormant accounts are prone to have been used as mule accounts.

Enhancing Security

In the case of FinTech applications, privacy is a significant consideration since it is an area that contains highly sensitive information. The QA agency can enhance your application's security by:

  • Security testing
    It is one of the most important testing, any application that involves financial data such as a FinTech application involves a lot of security. It involves scanning the implemented security features in the application to determine areas of weakness, avenues for attacks by hackers, etc.
  • Penetration Testing
    Focusing on training the computer in order to recognize the security vulnerabilities in the system by using realistic hacker scenarios. A penetration tester tries to take advantage of these openings to understand the kind of defense system the application has with a view of giving as many details as possible concerning the weak link as well as details of the firm that may be used to shore up the program. Penetration testing helps to identify and address potential security issues in your application.
  • Vulnerability Assessment
    Vulnerability Assessment can be defined as an assessment process to define the kinds of threats an organization has within a certain system, network or application, as well as the magnitude of harm that can be augured from the threats identified within the given duration of the assessment. It is a type of security testing that is critical for an organisation to know its security status, with being conquered by attackers with bad intentions.

Improving Performance and Scalability

FinTech applications are used in the management of large volumes of transactions and usage that need to be controlled and processed.

  • Load Testing
    QA agencies utilize load testing to observe the quality and functionality of the application when used intensively. This helps to better understand such issues as slow database queries or poorly produced pieces of code and to ensure smooth operation of the application when the expected number of users is reached. For example, mostly you have observed that the bank applications are down at midnight and that’s because their internal team might be performing various tests at that time.
  • Stress Testing
    They go as far as finding the behaviors of the application at extreme service conditions as if it were in operation. This also provides a useful guideline in figuring out the maximum number of users to accommodate and where and when the system may begin to falter, necessitating adjustments to head off a collapse under increased traffic.
  • Optimizing Code and Queries
    QA agencies analyze the code and the queries for the databases to enhance the time that takes to respond to a query. This includes recompiling or rewriting large, slow-running programs, creating indexes for databases, and storing much-used data.
  • Scalable Architecture Design
    QA agencies help define the concepts of architecture that will allow the building of a base on which more users can be accommodated. They are able to scale resources with things like microservices, load balancers, and cloud solutions that can easily be incorporated.

Enhancing User Experience

For any FinTech application, the user interface needs to be smooth and easy to manage so that people do not face any confusion while they are using the particular application. QA agencies are pivotal in the enhancement of various interlinkage with techniques and testing in order to have an efficient structure whereby the users would not feel that the application is an arduous one but rather an enjoyable one.

  • Usability Testing
    • User Testing: Recruiting actual users to use the application, watching how they act while using the application, and seeing their input. This helps to find out the problems, some aspects which may be confusing for the user, as well as the problems which the user encounters, thus, this will help to localize areas which need to be improved.
    • Heuristic Evaluation: People having low levels of computer literacy also face many problems using this application while postgraduate faculties and working executives can use this application effectively. This is a rapid approach to identifying problematic views and defining guidelines for their improvement.
  • Accessibility Testing
    Promoting accessibility should be the goal of organizations and governments as it is a way to include everyone. QA agencies ensure that their FinTech applications are built under the WCAG (Web Content Accessibility Guidelines) so that users with disabilities can access the application easily.
    • Screen Reader Compatibility
      Ensuring that visually impaired users gain maximum benefits from the application involves testing the chosen application to screen readers to optimize the application for the visually impaired users.
  • User Interface Optimization
    • Consistent Design: Some of the crucial requirement of compliance are as follows – Ensuring that there are no size inconsistencies across the application: This is a core aspect of designing a software application and entails making sure that all objects displayed on the screen have a scalable typeface which does not distort its size when resized to match with its size across the application. This includes uniform font type used in mensuration, color combination, and buttons used in application since they familiarize and give comfort to the users.
    • Responsive Design: Ensuring that users can enjoy the service and its utility on any device and screen size they desire. QA agencies use an application on various devices in sequence to guarantee smooth running and standardized experience delivery to all users.
  • Performance and Reliability
    • Optimize Load Times: Make sure a page, as it consists of a limited amount of content, will load as fast as possible and with minimal issues. 
    • Ensure Reliability: To be effective there should be extensive testing to overcome the problem by finding out the bugs and make the application more stable and to run smoothly without fail.

Ensuring Functional Accuracy

Both macro and micro processes of FinTech applications perform operations that need to work perfectly. QA agencies ensure functional accuracy by:

  • Automated Functional Testing with AI leverage: To check that newly developed capabilities do not interpose with the former ones, they engage in regression testing with the help of automated testing tools. QA agencies can utilize AI along with Automation testing to automatically create smart scripts for testing the functions of the application, which can further be altered by it, and for performing performance testing, AI-driven tools can mimic the reality, meaning high numbers of user volume, and help in pinpointing out the flaws of the application and for guaranteeing optimal performance of the application.
  • Manual Testing: Since they are letting a skilled QA tester analyze the information manually, it has to be precise and reliable for financial transactions or any kind of intricate workflow.

Cost Efficiency

To learn more about the advantages of engaging a QA agency, it is necessary to highlight that it is even more beneficial than hiring a team of in-house QA specialists. Benefits include:

  • Scalable Resources: QA agencies give considerable advantages of flexibility and scalability because you can adjust your testing up and down as circumstances change.
  • Access to Expertise: By outsourcing, you can enjoy a vast pool of tested and skilled workers with deep knowledge of FinTech testing, which will help you save a lot of money on training your employees with the necessary skills.

Conclusion

Outsourcing the Software testing to a dedicated QA agency makes more sense, as they have experience working with various FinTech applications, and their internal strong knowledgebase plays very important role to your FinTech application success.

When it comes to FinTech application testing, partnering with a specialized QA expert like Alphabin makes all the difference. With our extensive experience and strong knowledgebase in FinTech, we bring a level of expertise that sets us apart from others. Our team of seasoned QA engineers has a deep understanding of the complexities and nuances of FinTech applications, ensuring that your project receives the highest level of quality assurance. Notably, we have had the privilege of partnering with India's largest private bank to test their FinTech applications, leveraging automation to ensure seamless functionality and unparalleled security. This experience has further honed our expert QA tester, enabling us to provide unparalleled testing services to our clients.

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Frequently Asked Questions

Why is QA required for fintech app testing?
FAQ Arrow

Fintech app process financial transactions and personal information; therefore, safety and dependability are essential components of these applications.

  • Security: Secure user content and block leakage.
  • Compliance: Comply with the specifications of the law to prevent legal complications.
  • Performance: Users should be able to manage high traffic and/or transactions effectively.
  • User Experience: Ensure that the system has simple and easy-to-use navigation to enhance the user experience of the target audience.
  • Reliability: Maintain the integrity of the financial operation in school.
How does a QA agency ensure regulatory compliance for a fintech app?
FAQ Arrow

QA agencies understand the regulatory requirements of reaching compliance or retaining compliance with standards like GDPR, PCI DSS, SOC, SOC II, and AML/KYC. This means that they conduct compliance testing to confirm if your app is in compliance with these regulations. Some of them are General Data Protection Regulation or GDPR for the protection of personal data, the Payments Card industry data security standard or PCI DSS for credit card transaction security and anti-money laundering & know your customer compliance, or AML/KYC compliance for preventing fraud.

Which security measures does a QA company put in place for a fintech app?
FAQ Arrow

QA agencies perform security testing, penetration testing, and vulnerability assessments on fintech applications in order to detect security risks. They also conform to the industrial best practices and standards when it comes to handling sensitive financial data as well as to ward off cyber threats.

Why should I choose a specialized QA agency for testing my FinTech application?
FAQ Arrow

Selecting a specialized QA agency as the testers of your fintech application is like hiring a team of professionals who are fully aware of the different approaches needed in performing fintech testing. By choosing a team of professionals with vast experience in fintech testing, you get accurate and comprehensive testing services based on the specifics of your app. With them, you have no worry because your app is in the hands of people who know what it takes to work with fintech and give you professional results.

About the author

Pratik Patel

Pratik Patel

Pratik Patel, a seasoned QA Automation Engineer, is the founder and CEO of Alphabin, an innovative AI-powered Software Testing company.

With 10+ years of experience, Pratik excels in building world-class automation testing teams and leading complex enterprise projects. His expertise extends to Mobile Automation Testing, as evidenced by his authored book.

Pratik has collaborated with startups and Fortune 500 companies, streamlining QA processes for faster release cycles. At Alphabin, he spearheads a dynamic team that leverages AI to transform testing across healthcare, proptech, e-commerce, fintech, and blockchain domains. Alphabin also develops an internal AI-powered test management tool.

Pratik actively contributes to the testing community through hackathons, talks, and events, always eager to connect with fellow professionals passionate about AI and Automation.

More about the author
Join 1,241 readers who are obsessed with testing.
Consult the author or an expert on this topic.
Join 1,241 readers who are obsessed with testing.
Consult the author or an expert on this topic.