A Complex future: Why private banking and wealth and asset management firms should embrace test automation now

27 Oct 2023

This month’s author: Laura Philbin, Head of Operations at Assured Thought

Test automation is already reshaping the landscape of digital transformation in financial services, driving innovation and efficiency while ensuring the highest standards of quality and security. 

In this month's blog, Assured Thought’s head of operations, Laura Philbin, focuses on how embracing test automation now could help firms successfully navigate their digital transformations, respond to evolving client expectations and secure their applications in an ever-changing, increasingly complex financial ecosystem.

As the world continues to pivot towards digitisation, technological advancements and changing client demographics have brought the private banking and wealth and asset management sector to a challenging, yet exciting, crossroads. Amidst these evolving dynamics, test automation has emerged as a significant facilitator, enabling financial services firms to innovate, and to enhance efficiency, quality and security while offering seamless, personalised experiences to meet ever-escalating customer expectations. 

What is test automation?

Test automation is the process of using software to conduct predefined tests to verify that a system functions as intended. Its benefits – such as speed, efficiency, accuracy and the ability to execute complex tasks repeatedly – make it a game changer in the realm of software testing and quality assurance (QA).

Driving innovation and efficiency

Because rapid development and deployment of new features can give financial services firms a significant competitive edge, test automation has become a pivotal growth tool. Automated tests are reusable and can run frequently, allowing for quicker feedback loops to developers. This speed enables teams to innovate and iterate at a pace that manual testing simply can't match, thereby enhancing productivity and reducing time-to-market.

A case in point is the implementation of robo-advisors in wealth management. Robo-advisors use algorithms to provide automated investment advice to clients, requiring extensive back-testing to ensure accuracy and reliability. Test automation allows for the rapid validation of these algorithms across various scenarios, facilitating faster, data-driven improvements.

Ensuring quality and security

Of course, there is no margin for error in private banking and asset management: security breaches and software glitches can erode customer trust and result in hefty regulatory penalties. So test automation plays a crucial role in this area too.

By automating security and regression testing, firms can ensure their applications remain secure and perform as expected, even as they evolve to meet future challenges. Automated tests can repeatedly simulate attempted breaches or edge cases to identify vulnerabilities, ensuring robust security.

Preparing for a new era

The future of private banking and wealth and asset management is one of increasing complexity. New technologies, such as blockchain, AI, and IoT, will bring fresh challenges, and customer expectations will continue to rise.

Test automation will be central to navigating these complexities. 

However, successful implementations require tailored strategic approaches: it’s not a case of ‘one strategy fits all.’ Individual needs and contexts must be considered. From selecting the right tools and frameworks to fostering the necessary skills within teams, a firm’s journey to test automation must be carefully planned and managed in order to succeed.

At Assured Thought, we’re excited to continue supporting our clients in navigating their individual digital transformation journeys. We flexibly leverage best-in-class test automation strategies to ensure they can innovate rapidly, maintain the highest quality standards and secure their applications against potential threats. 

We realise that Test automation is not just a future option for continued success in the financial services sector – it's already essential.


For more expert advice from Assured Thought, the QA and testing provider of the financial services industry, click here:

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