This month's author: Laura Philbin, Head of Operations at Assured Thought
Test automation has emerged as a pivotal strategy for financial institutions, helping them to meet complex compliance requirements, outperform competitors and satisfy the evolving demands of their tech-savvy customers.
In this month's blog, Laura Philbin explores the compelling business case for investment in test automation in financial services, analysing the return on investment (ROI) and highlighting the most effective tools and frameworks for our industry.
Analysing the ROI of test automation
Faster releases
In the financial services industry, where time-to-market can be a critical competitive advantage, speed is invaluable. One of the most significant benefits of test automation is the acceleration of the software release cycle: automated testing can execute repetitive and extensive test cases far faster than manual testing. According to a report by Capgemini, organisations that implemented test automation reduced their testing time by up to 80% and increased the frequency of software releases by 64%.
Improved quality
Test automation enhances the quality of software by ensuring thorough and consistent testing. Automated tests can run 24/7 and cover a vast array of test scenarios, including edge cases that might be missed during manual testing. A study by IBM found that organisations leveraging test automation experienced a 20% reduction in production defects. This reduction in defects is particularly crucial in financial services, where even minor software glitches can lead to significant financial losses and damage to reputation.
Reduced costs
While the initial investment in test automation tools and framework setup can be considerable, the long-term cost savings are substantial. Automated tests can be reused across multiple projects and iterations, reducing the need for extensive manual testing resources. According to a study by Forrester, companies using test automation reported a 28% reduction in overall testing costs. For financial institutions, these savings can be redirected toward innovation and other strategic initiatives.
Effective tools and frameworks for financial services
Selenium
Selenium is a widely used open-source framework for web application testing. Its ability to support multiple programming languages and browsers makes it a versatile choice for financial services, where diverse platforms and systems are common. Selenium's robust community support and capacity for integration with other tools – such as Jenkins for continuous integration (CI) – further enhance its appeal.
Appium
For financial institutions developing mobile applications, Appium offers an excellent solution. As an open-source tool, Appium allows for automated testing of native, hybrid and mobile web applications across iOS and Android platforms. Given the increasing popularity of mobile banking and finance apps, Appium's capabilities are particularly relevant.
QMetry Automation Studio
QMetry Automation Studio is a comprehensive test automation tool that caters specifically to the needs of the financial services industry. It supports multiple programming languages and integrates seamlessly with CI/CD pipelines. Its robust reporting and analytics features provide detailed insights into test coverage and quality, helping financial institutions maintain compliance and audit readiness.
Tricentis Tosca
Tricentis Tosca is a model-based testing tool that automates end-to-end testing for complex financial applications. Its ability to handle API testing, UI testing, and load testing within a single platform makes it a powerful tool for financial services. Tricentis Tosca's risk-based testing approach ensures that critical functionalities are thoroughly tested, reducing the likelihood of defects in high-impact areas.
The business case for test automation in financial services is compelling. By accelerating release cycles, improving software quality and reducing testing costs, test automation offers a significant ROI. The choice of tools and frameworks, such as Selenium, Appium, QMetry Automation Studio and Tricentis Tosca, further enhances the effectiveness of test automation strategies in this industry. As financial institutions continue to innovate and digitise their services, their investment in test automation will prove a crucial driver of success and competitive advantage.
For more expert advice from Assured Thought, the QE and testing provider of the financial services industry, click here: https://assuredthought.com/contact-us/
