This month's author: Laura Philbin, Head of Operations at Assured Thought
To stay competitive, well-established financial institutions are investing heavily in modernising their legacy systems. This transformation is crucial not only for improving digital service delivery but also for meeting the evolving demands of tech-savvy customers. In this blog, Laura explores the significance of legacy system modernisation and the vital roles quality engineering and software testing play in this journey.
The need for modernisation
Traditional banks have long relied on legacy systems to manage their core operations. While these systems have been robust and reliable, they often lack the flexibility and agility needed to support modern digital services. With the rise of digital-first challenger banks offering seamless, user-friendly experiences, traditional banks must upgrade their systems to keep pace.
Key drivers for modernisation:
1. Customer expectations: Today's customers expect instant access to services, personalised experiences, and seamless transactions across all digital channels.2. Operational efficiency: Modern systems can streamline operations, reduce costs, and improve overall efficiency.
3. Regulatory compliance: Updated systems ensure compliance with evolving regulatory requirements, reducing the risk of penalties and enhancing trust.
4. Competitive advantage: Embracing new digital practices can provide a competitive edge, attracting and retaining customers in a crowded marketplace.
Quality engineering: The backbone of successful modernisation
As banks embark on their journeys of legacy system modernisation, quality engineering becomes a cornerstone of success. Quality engineering encompasses a comprehensive approach to ensuring all aspects of the software development lifecycle are optimised for quality, performance, and reliability.
Key components of quality engineering:
1. Requirement analysis: Clear understanding and documentation of requirements ensures new systems meet business and customer needs.2. Continuous Integration and Continuous Deployment (CI/CD): Automated pipelines facilitate rapid and reliable deployment of code changes, enabling quicker releases and updates.
3. Test automation: Implementing automated testing validates functionality, performance, and security, reducing manual effort and increasing coverage.
4. Performance engineering: Ensuring a modernised system can handle high volumes of transactions guarantees a smooth user experience under peak loads.
5. Security testing: Proactively identifying and mitigating vulnerabilities helps to protect sensitive customer data and maintain regulatory compliance.
The role of software testing in modernisation
Software testing is a critical aspect of the modernisation process, ensuring new systems function as intended and deliver a high-quality user experience.
The five types of software testing key to modernisation:
1. Functional testing: Validates that a system performs its intended functions correctly. This includes testing individual components and the system as a whole.2. Regression testing: Ensures that new changes do not introduce defects into existing functionality. This is crucial during incremental updates.
3. Performance testing: Assesses a system's responsiveness and stability under various conditions, ensuring it can handle real-world usage scenarios.
4. Usability testing: Evaluates a system’s user interface and overall user experience, ensuring the system is intuitive and user -friendly.
5. Security testing: Identifies potential security risks and ensures a system is robust against attacks.
A holistic approach to modernisation
Modernising legacy systems is not just about replacing old technology with new. It requires a holistic approach that includes re-engineering processes, retraining staff, and fostering a culture of continuous improvement. Banks must also prioritise collaboration between IT and business units to ensure modernisation efforts align with strategic goals and deliver maximum value.
Steps to successful modernisation:
1. Assessment and planning: Conducting a thorough assessment of existing systems and creating a detailed modernisation roadmap.
2. Stakeholder engagement: Involve Involving all relevant stakeholders, – including IT, business units, and customers, – to gather insights and ensure alignment.
3. Incremental implementation: Adopting an incremental approach to modernisation, allowing for continuous feedback and adjustments.
4. Investing in talent: Training and upskilling employees to manage and operate modernised systems effectively.
5. Embracing innovation: Staying abreast of emerging technologies and industry trends to continuously enhance digital capabilities.
Legacy system modernisation is a critical initiative for traditional banks aiming to stay competitive in the digital age. By investing in quality engineering and robust software testing practices, banks can ensure a smooth transition to modern systems, delivering enhanced digital services that meet customer expectations and drive business growth.
