Banking Application Testing: Everything You Need to Know

Today, customers want banking services that are quick and dependable through apps. If your app is slow or crashes, it can hurt your brand's reputation. Just having an app isn't enough anymore since every bank has one. The real challenge is to build an app that meets your customers' needs for speed, quality, and performance. 

Given that the global online banking market is projected to reach $31.81 billion by 2027, with a remarkable growth rate of 13.6% from 2020 to 2027, this trend underscores the importance of delivering exceptional digital experiences. Financial services are increasingly tailored to web and mobile platforms, making banking software crucial for its functionality, performance, user experience, usability, and security. 

If you're the owner of a banking application or a tester assigned to such a project, we encourage you to dive into this article. It serves as a comprehensive checklist of the best practices and strategies for effectively approaching banking application testing.  

Understanding Banking Application Testing 

Banks manage substantial financial assets, making them prime targets for cyberattacks. Given the sensitive nature of the data they handle - including personal customer information and business transactions—banks must be exceptionally vigilant about both data storage and sharing. 

The centralization of this data on a single system increases the risk of unauthorized access. To mitigate these risks, banks must implement robust security measures, which is where application security testing becomes critical. 

Banking application testing involves identifying vulnerabilities within banking apps through both manual and automated methods. The primary goal is to ensure that these applications adhere to the highest security standards and provide a secure environment for users. 

Effective software testing for banking applications requires familiarity with banking standards and regulations. Testers must ensure compliance with financial sector rules to avoid rejection of test results by financial institutions.

This rigorous approach helps maintain both the security and availability of banking applications. Understanding how to test banking applications is crucial for ensuring the security and reliability of financial transactions. 

Why Do We Need Banking Application Testing? 

Banking applications are associated with numerous risks due to their handling of financial transactions. Even minor errors can lead to significant dangers, necessitating thorough attention to bugs during the development process. Based on our experience, we have prepared a list of key reasons why do we need software testing for banking applications (learn more about our security testing services and how we help protect your business from security threats). 

Testing banking applications is crucial for spotting potential issues and fixing them right away, allowing one to contact the user for safe and efficient services. It improves performance, smoothest workflows, decreases challenges in maintaining the system, and improves customer retention by delivery of high-quality financial services. Many developers struggle with how to test banking applications, but thorough testing is essential to prevent vulnerabilities (read our article web application security testing to explore how to safeguard your web applications from vulnerabilities).

How to Test Banking Applications? 

If you're looking to implement testing for your fintech project, it's crucial to understand the necessary stages involved in validating banking applications. Validating a banking application is essential to ensure that the system operates smoothly and meets user expectations. This validation process requires following a comprehensive checklist, which includes the key steps outlined below: 

1. Requirement Analysis: Initiate the validation process by conducting a thorough analysis of the project's requirements, including functional, non-functional, and regulatory specifications. 
2. Test Planning: Develop a detailed test plan articulating the scope, objectives, and testing strategies for the banking application. This plan should encompass automation tools and all requisite resources for testing. 
3. Test Environment Setup: Establish a testing environment closely resembling the production environment to facilitate the execution of test cases, whether for regression testing or banking application automation testing specific to banking. All testing activities must be conducted within this designated environment. 
4. Test Execution: Formulate test cases or scripts covering functional, security, non-functional, performance, regression, and usability testing aspects. Subsequently, execute these tests for the banking application. 
5. Continuous Monitoring: Integrate monitoring tools and protocols to enable ongoing performance and security monitoring of the application within the production environment. 
6. Documentation and Reporting: Maintain meticulous test documentation comprising test plans, cases, and results. Additionally, prepare reports to communicate the testing status, including any identified issues or defects. 
7. Feedback and Improvement: Solicit feedback from testers, users, and stakeholders to pinpoint areas for enhancement and refinement in subsequent development phases. 

Conclusively, consider incorporating the establishment of an automated test tool and framework to compile an exhaustive suite of test cases for banking applications within this checklist. 

Testing Types Banking Application Testing 

The standard stages discussed in the preceding section, usually include the following testing types: 

• Database Testing: This phase centers on validating data integrity, accuracy, and performance within the database. It encompasses testing data retrieval, storage, and transactions to ensure the database functions as intended. 
• Integration Testing: Various modules and components of the banking application are tested collectively to identify any potential issues that may arise during their interactions. This phase ensures seamless operation of all integrated components. 
• Functional Testing: Functional testing evaluates whether the application's functionalities align with specified requirements. Test cases encompass a range of banking operations to verify that each function operates correctly, from account management to transaction processing. 
• Security Testing: Given the critical nature of security in banking, this phase examines the application for vulnerabilities and protects sensitive data. It involves penetration testing, vulnerability assessments, and checks for data encryption. 
• User Acceptance Testing (UAT): Prior to deployment, actual users engage in UAT to assess the application's usability, functionality, and overall appropriateness. 
• Usability Testing: It focuses on evaluating the application's user-friendliness. Testers review the user interface, navigation, and overall user experience to improve accessibility and ease of use. 

Testing of a banking application is essential to ensure its integrity, functionality, security, and usability for a seamless user experience (read our article automated functional testing to understand the benefits of automating functional tests and how to implement them effectively).

Banking Application Testing Tools 

Effective banking domain application testing requires a suite of specialized tools to ensure comprehensive coverage and high-quality results. The following tools are essential for managing various aspects of the testing process, from bug tracking and test case management to performance evaluation and traffic monitoring. 

1. Database Testing

• SQLMap: An open-source tool designed to detect and exploit SQL injection vulnerabilities in databases. It automates the process of identifying and exploiting SQL injection flaws. 
• DbFit: An extension of FitNesse used specifically for database testing. It focuses on verifying database interactions and ensuring the integrity of the data. 

2. Integration Testing

• Postman: A versatile tool for API testing that allows users to create, execute, and automate API requests and responses. It's commonly used for testing the functionality and reliability of web services. 
• SoapUI: A tool for testing SOAP and REST web services. It provides features for functional, regression, and load testing, making it valuable for integration testing of web services. 

3. Functional Testing

• Cypress: An end-to-end testing framework known for its speed and reliability. It is particularly effective for testing modern web applications and provides robust debugging capabilities. 
• Playwright: A powerful automation tool that supports multiple browsers and offers extensive debugging features. It is designed for modern web applications and is known for its reliability and flexibility. 

4. Security Testing

• BurpSuite: A comprehensive platform for web security testing. It includes tools for vulnerability scanning, penetration testing, and web application security analysis, helping to identify and address security issues. 
• OWASP ZAP (Zed Attack Proxy): An open-source security tool used for finding vulnerabilities in web applications. It provides automated scanners and various tools for penetration testing. 

5. UAT and Usability Testing

• TestRail: A test case management system that provides automated reporting and customizable metrics. It is ideal for teams that need detailed insights into their testing processes and results. 
• Zephyr: A tool tailored for Agile teams, offering real-time bug tracking and continuous quality improvement. It integrates seamlessly with Jira, making it suitable for various project scopes. 
• qTest: A versatile test case management platform that supports various integrations and testing methodologies. It helps QA teams manage and track different types of testing tasks effectively. 

These tools are essential for comprehensive testing across different areas, ensuring high-quality results and effective management of the testing process. 

These tools are essential for comprehensive testing across different areas, ensuring high-quality results and effective management of the testing process. 

Checklist for Testing a Banking Application 

Our team has prepared a comprehensive checklist for testing banking applications, ensuring thorough coverage across various aspects. 

1. Functional Testing 

• Verify if error messages are displayed when a mandatory field, such as account number, is left empty. 
• Check if fields accept invalid values. 
• Ensure fields do not accept values exceeding character limits. 
• Verify all links on each page are clickable and navigate to the expected page. 
• Check that all buttons on each page are functional and trigger the expected action. 
• Ensure credit/debit calculations are performed as expected. 
• Verify smooth scrolling within the application. 
• Ensure phone calls, SMS, or any other notifications do not affect transactions. 
• Test the installation, uninstallation, and update procedures for the application. 

2. Database Testing 

• Verify data organization within the system is structured.
• Ensure data fields have the correct format.
• Confirm that calculations in computed fields are accurate.
• Check that each table has necessary constraints such as primary keys, foreign keys, and unique indexes.
• Verify there are no duplicate records in the tables.
• Ensure no null values are present in fields where they are not allowed.
• Confirm data updates in the database when a user inputs, edits, or deletes values.
• Test application functionality when the database server is down.
• Ensure data is preserved even in case of operation failure.
• Verify regular database backups.
• Ensure proper access rights are assigned to database users.
• Verify the database operates smoothly even with concurrent users.

3. Security Testing 

• Verify proper authentication protocols and systems are configured within the application. 
• Check if the application allows multiple incorrect login attempts. 
• Ensure the "Forgot Password" and "Forgot User ID" functionalities follow secure procedures for recovery. 
• Verify password policies and ensure error messages are displayed for policy violations. 
• Confirm all user IDs and passwords are encrypted. 
• Ensure the application supports secure protocols such as HTTPS. 
• Verify data encryption for displaying sensitive information on the client side. 
• Ensure proper input validation is performed on the server side. 
• Verify passwords are not stored in cookies. 
• Verify application functionality when the user clears the cache. 
• Ensure no URLs within the application contain sensitive information such as passwords. 
• Test for SQL injection, XML injection, HTTP header injection, HTTP parameter pollution, XPath injection, and regular expression injection vulnerabilities. 
• Ensure the keyboard button/icon is disabled for certain pages. 

4. Usability Testing 

• Verify the application’s navigation is intuitive. 
• Ensure visual elements are consistent throughout the application. 
• Confirm consistent terminology and labels across the application (e.g., using "Fixed Deposit" instead of "FD"). 
• Check all pages have clear headings in links and buttons. 
• Verify error messages and warnings are easy to understand. 
• Ensure placeholders and hints are present in key application fields. 

5. Performance Testing 

• Verify application performance does not degrade when multiple users access the same or different functionalities. 
• Test application performance at low, medium, and high battery levels or while charging. 
• Check for performance variations at different times. 
• Verify application functionality on a slow internet connection. 
• Test performance during transactions when the internet connection drops. 
• Check performance when switching from low to high internet speed. 

6. User Acceptance Testing 

• Ensure the application runs smoothly in the client's or real environment. 
• Verify application functionality with real-world scenarios. 
• Check if the application supports utility payments and other third-party integrations. 

In addition to the phases mentioned above, the testing process for banking applications also includes regression testing, accessibility testing, and more. These additional phases ensure comprehensive coverage and help deliver a robust banking application. 

Our Experience in Banking Application Testing 

At Luxe Quality, we know how complex fintech applications can be and how critical thorough testing is for their success. We use our industry knowledge to customize testing strategies for each application, aiming to improve user experience and customer satisfaction. One notable project is CptoX, a mobile platform aimed at revolutionizing investment management. 

Case Study: CptoX (USA) 

We helped CptoX develop a unified SDK for Android and iOS platforms, using Kotlin Multiplatform to streamline business logic across devices. Initially, they lacked a structured testing process, so we implemented both manual and automated testing, ensuring comprehensive coverage and enhanced security. 

Features of the project: 

• Kotlin Multiplatform SDK development for seamless cross-platform performance. 
• Automated testing of 130 cases to improve stability. 
• Security assessments to protect user data. 

Results:

• Identified and resolved 15 critical bugs. 
• Enhanced platform security with advanced testing tools. 
• Streamlined development and testing processes, improving overall platform performance. 

Choosing Luxe Quality means partnering with a team with extensive fintech experience. We are committed to delivering reliable and efficient testing services to ensure your banking applications thrive in a competitive market. 

Recommendations for Testing Banking Applications 

Our team has prepared the following recommendations: 

1. Regular testing: We must conduct regression testing whenever updates or quick fixes are implemented in the application. This ensures that new changes do not introduce new issues or negatively impact existing functionalities. 
2. Organized testing: We should be involved throughout the entire application lifecycle. This includes gathering requirements, verifying them, creating test scenarios, and so on. A structured approach helps in maintaining comprehensive test coverage and identifying issues early. 
3. Gather real user feedback: To obtain reliable, unbiased results, we should ask real users to test the application and collect their feedback. This can help us improve the application by addressing real-world usability issues and meeting user expectations more effectively. 
4. Prioritize both manual and automated testing: Automate most of the application's features to ensure efficiency and consistency in testing. Manual testing, on the other hand, is crucial for testing new features and gaining a better understanding of the user interface and overall user experience. 
5. Use real devices: Emulators cannot be a long-term solution for device testing. Using real devices provides accurate results and helps identify bugs that might not be detected by emulators. Real devices reflect the actual operating environment of the users. 
6. Test with extensive and real data: Simulate real-world scenarios by using comprehensive and realistic data to test for vulnerabilities in the application. This helps in uncovering issues that could affect the application in real-world usage. 

Implementing these recommendations on how to test banking applications can significantly enhance the quality and reliability of our banking domain applications, ensuring they meet the high standards required in the financial industry.  

Challenges in Testing Banking Apps & Their Mitigation 

Banking application testing presents several challenges, each requiring specific strategies for effective mitigation. Below is a table outlining common challenges and their corresponding mitigation: 

Effectively addressing the challenges in bank application testing requires a strategic approach, including rigorous data management, thorough testing of migration processes, detailed requirement analysis, compliance checks, and adequate time allocation for integration testing. Implementing these mitigation strategies ensures a more reliable and secure banking application. 

Conclusion 

Testing banking applications is essential to ensure they meet the high standards required for security, performance, and user satisfaction. With the rise in online banking and the increasing complexity of financial transactions, thorough testing helps identify vulnerabilities, optimize functionality, and enhance user experience. By following best practices, using specialized tools, and addressing common challenges, banks can deliver robust applications that safeguard sensitive data and provide a seamless user experience. 

For more information on effective testing strategies and tools, or if you need assistance with your banking application testing, contact us today.