How to test Banking Domain Applications

Customers in the banking industry today rely heavily on apps and websites to perform tasks like transferring funds, trading, and monitoring account activity.

However, since banking applications manage highly sensitive financial data, testing these systems demands the utmost precision and thoroughness. Any lapse in test coverage can result in data breaches, financial losses, or severe security risks—issues banks cannot afford to face.

This article delves into the key aspects of banking domain testing and serves as a comprehensive guide for QA professionals who are responsible for ensuring the reliability and security of banking applications.

What is Banking Domain Testing?

Banking domain testing involves assessing the functionality, performance, security, and user experience of banking applications to ensure they meet customer expectations and regulatory requirements.

As more customers shift to digital platforms for tasks like money transfers and balance checks, testing becomes crucial to ensure smooth operations, minimize downtime, and protect sensitive financial data.

This process also focuses on validating compliance with industry regulations and preventing vulnerabilities that could lead to fraud or data breaches, ensuring secure and user-friendly banking applications.

Importance of Testing Banking Apps

Insufficient testing of banking domain applications will not just inconvenience users with sub-par functions and features. It can also directly damage your business and reputation by allowing malicious parties to acquire customer data or access customer funds in the worst-case scenario.

Below are the key reasons why it is important to test banking applications:

• Protects Sensitive Data: Ensures that personal and financial data is secure from breaches, preventing potential loss or misuse of customer information.
• Prevents Financial Losses: Insufficient testing can lead to vulnerabilities that allow fraudsters to steal funds or conduct fraudulent activities, directly impacting a bank’s bottom line.
• Maintains Reputation: Security flaws and poor app performance can lead to loss of customer trust and reputational damage.
• Ensures Compliance: Banking applications must comply with strict regulations and security standards to avoid legal issues and penalties.
• Improves User Experience: Proper testing guarantees smooth and reliable functionality, boosting customer satisfaction and retention.
• Reduces Risk of Cyberattacks: Comprehensive testing helps identify and fix vulnerabilities, reducing the risk of cyberattacks targeting banking apps.

Banking apps must be extensively, meticulously, and painstakingly tested on real mobile devices rather than emulators/simulators to prevent such disasters.

Test App on Real Mobile Devices

Major features of banking applications to test

Below are the major features of banking applications that need to be tested:

• Authentication gateways: Given that banking apps deal almost entirely with sensitive data (personal identifiers, credit, and debit card numbers, income details, etc.), they need to protect user access at all costs. Fortifying secure user access is legally binding under the GDPR and Payment Service Directive 2.
  
  Generally, adequately secure authentication requires the following
  1. Login credentials or a PIN
  2. Physical features (fingerprint, sometimes retinal scans)
  3. Security questions/phases/images to be validated (CAPTCHA, for example)

• Account management: The account management feature tracks, catalogs, and displays all relevant information to users – account balance, money transfer services, etc. It also lets them get necessary tasks done quickly and with zero errors.

Again, since all the information revolves around actual money, mistakes are intolerable in these databases. Every user should have a separate database ID for themselves. They should be able to see real-time data. Anytime a transaction fails, money should bounce back to the originating account as quickly as possible. Inactive accounts must be disabled after a certain period. In fact, the app itself should automatically log out if it has been inactive for a particular duration.

• Payment support: Banking apps must support payment options outside the usual bank-to-bank transaction. This could be QA-based payment support, integrations with other apps (delivery apps, e-Commerce apps, food apps, booking services), and the like.

• Customer support: Customers should be able to access assistance anytime they want. Most banks assign some kind of relationship manager for customers to call when they need help, but hiring workers to be available 24/7 would be expensive and a managerial nightmare.

Of course, a human presence is always mandatory. But intelligent chatbots have proved to be a favorable alternative. Bots don’t get tired, are active around the clock, and don’t make human errors. Of course, this is considered that the bot has been intelligently designed to handle a large number of common customer questions, complaints, and requirements

Bear in mind that, depending on the app and bank behind it, other features may be added on. However, these features are fundamental – no banking domain app can do without them. Thereby, any QA Requirements Documentation will have to structure tests around each of these features for comprehensive test coverage. 

How to Validate Banking Applications?

Validating a banking application ensures the system operates seamlessly and meets user expectations.

Here’s a general guide to follow:

• Understand all functional, non-functional, and regulatory requirements to align testing efforts with the project’s goals.
• Create a detailed test plan outlining the testing scope, objectives, strategies, required resources, and tools for automation.
• Establish a testing environment that mirrors the production environment to ensure accurate test results, covering scenarios such as regression testing and functional checks.
• Develop and execute test cases for functional, security, performance, usability, and regression testing, ensuring thorough application coverage.
• Implement tools and processes to continuously monitor the application’s performance and security in the production environment.
• Maintain thorough documentation and generate reports to share the status of testing and highlight any defects.
• Gather input from testers, users, and stakeholders to refine the application and improve testing processes for future cycles.

Incorporating automated testing tools and frameworks into this checklist can enhance efficiency and accuracy when validating mobile and web banking applications.

Test Phases in Bank Application Testing

The key test phases in bank application testing are as follows:

• Database Testing: Validates data accuracy, integrity, and performance by testing data storage, retrieval, and transactions to ensure database reliability.
• Integration Testing: Checks interactions between various modules and components to confirm seamless functionality across integrated parts.
• Functional Testing: Verifies that all banking operations, such as account management and transaction processing, align with specified requirements and function as intended.
• Security Testing: Ensures the application is free from vulnerabilities, safeguarding sensitive data through penetration tests, vulnerability assessments, and encryption checks.
• User Acceptance Testing (UAT): Engages real users to assess the application’s usability, functionality, and readiness for deployment.
• Usability Testing: Evaluates the application’s user interface and navigation to ensure it is intuitive and accessible for all users.

How to test banking domain application: A Quick Checklist

Testing banking apps requires precision to ensure stability, security, and usability. Follow this concise checklist to streamline the QA process:

• Identify and Review Requirements: Document functional and non-functional needs. Review with stakeholders to ensure clarity and alignment.
  
• Test Case Development: Develop comprehensive test cases based on requirements. Use automation for repetitive tests and manual efforts for critical areas.
  
• Functional Testing: Verify workflows to ensure users can easily perform tasks like money transfers or account management.
  
• Database Testing: Test data accuracy, retrieval, and storage to ensure seamless database operations.
  
• Cross-Browser and Device Testing: Ensure compatibility on various devices and operating systems using real devices for realistic results.

• Security Testing: Prioritize this step to safeguard sensitive financial and user data. Here are Key features to verify:
  • Authentication mechanisms like User ID, Password, and CAPTCHA.
  • Validation for invalid login attempts and credential recovery processes.
  • Use of secure HTTPS protocols and encryption for sensitive data.
  • Proper handling of input validation, inactivity timeouts, and XML or SQL vulnerabilities.
• Usability Testing: Conduct focus group testing with prototypes to validate navigation, accessibility, and overall user experience.

Sample test case for mobile banking applications

There are many test cases for banking applications. Below are some sample test cases:

Test Case for creation of new customer account

Below are the steps for testing creation of new customer account:

• Create a new account with data. Use invalid data to check that it is rejecting the action in this event. 
• Check that all authentication requirements are activated. 
• Verify that the new data is saved and that it can be updated as required. 
• Verify that everyday user actions are working as expected – depositing money, withdrawing money, and that account balance is reflected accordingly. 
• Verify that the account provides services aligning with its nature – saving, current, salary, joint, etc. 
• Verify that users can maintain zero balance (if it is a salary account) or the minimum balance (if it is not) in the account. 
• Verify that users can get relevant notifications – credit/debit of exact amounts, alerts about low balance, warnings about upcoming deductions, etc. 
• Verify that the user can safely log out.

Test Case for Service Requests

Below are the steps for testing service requests feature:

• Ensure users can access the service request section from the main menu or dashboard.
• Test key service requests (e.g., account statements, fund transfers, card management).
• Verify proper input validation for service request forms and error handling.
• Confirm users receive email confirmations for submitted requests.
• Test service request tracking (e.g., pending, in-progress, completed).
• Ensure users can cancel pending requests before processing.
• Check for clear error messages on submission failures.
• Verify options for card-related requests, including statements, new applications, and blocking.

Test Case for Money Transfer

Below are the steps for testing money transfer:

• Confirm users can access money transfer options via the main menu or dashboard.
• Test recipient selection from the beneficiary list and validate recipient details.
• Verify transfer amounts meet account balance and transaction limits.
• Test multiple payment methods (e.g., NEFT, RTGS, IMPS) for accuracy.
• Check PIN or OTP verification before completing transfers.
• Ensure accurate recording of transactions in the history section.
• Enforce transaction limits and communicate them clearly to users.

Test Case for New Branch Management

Below are the steps for New branch:

• Confirm authorized users can access the branch management section.
• Verify branch creation forms include fields like name, address, and contact details.
• Ensure unique branch codes or identifiers are assigned.
• Test the ability to assign branch managers during branch creation.
• Check branch type selection options (e.g., main, regional).

Challenges in Banking Domain Testing

Below are some common challenges when it comes to testing in the banking domain:

• Ensuring Secure Transactions: Protecting customer data and transactions from theft and hackers is critical. Testers must implement robust security testing with multiple security layers.
• Data Migration During Branch Shifts: When transferring large datasets and testing new branch functionalities, testers should perform thorough data migration and regression testing to ensure seamless functionality.
• Managing Large Databases: Large banking databases require accuracy and security during upgrades and transactions. Testers must conduct comprehensive database testing using automation tools to validate data flow.
• Multi-Device Synchronization: Synchronizing banking services across mobile, net banking, and physical branches is essential. Testers must conduct compatibility and performance testing to ensure uninterrupted services on all devices.
• Incomplete Documentation: The lack of complete application requirements can hinder testing. Testers should actively participate in requirement gathering and acquire domain knowledge early in the process.

Best Practices for Bank Application Testing

Below are some best practices for efficient bank application testing:

• Understand project requirements by collaborating with stakeholders and project managers.
• Develop a comprehensive test plan outlining objectives, scope, schedules, resources, and risk management.
• Use realistic, anonymized, diverse data sets to validate banking transactions effectively.
• Implement test automation for repetitive tasks, including regression testing, to improve coverage and reduce manual effort.
• To protect customer data, Prioritize security testing, penetration testing, vulnerability assessments, and code reviews.
• Continuously analyze test results and incorporate feedback to refine test cases for improved accuracy and coverage.

Automate Bank Domain Testing with BrowserStack

When deciding how to write test cases for a banking application, care must be taken to run these tests on real devices (as well as real browsers in the case of websites). This is necessary for any app, but much more so for banking apps.

With thousands of device-OS combinations being used to access an app, security, stability, and operability will vary unless the app has been run on each combination. With sensitive information at stake, banks cannot afford to let their apps be breached and hacked on a device due to a lack of testing on said device. This could open them up to not just customer complaints but legal action. 

Without access to an in-house device lab, banks and financial institutions can utilize cloud-based testing platforms with real devices on offer. BrowserStack’s real device cloud, for example, hosts 3500+ real browsers and devices. Thousands of mobile devices (latest and legacy, belonging to major manufacturers and installed with multiple operating systems) can be used to test apps instantly, from anywhere in the world. 

Talk to an Expert

QAs can test their app’s UI and functionality on OS versions ranging from Android 4.4 to 11 & iOS 8 to 14 – all installed on real mobile devices. Our cloud is consistently updated with new and latest devices, which means QA teams can keep up with their users’ choices. They can execute manual app testing on BrowserStack App Live or automated app testing via Appium on BrowserStack App Automate. Users simply have to sign up for free, choose App Live or App Automate, select the device-OS combination they require, and start testing.

Conclusion

With data privacy becoming a key concern for digital systems worldwide, banking domain applications must be tested with precision, thoroughness, and real device support. This article provides a reliable starting point for the process, which QAs can modify, adjust and align with their specific requirements as the project advances.