Leveraging test automation and AI: How banks and building societies can innovate themselves into a sustainable future

First published on the BSA site along with DXC Technology

Data analytics and generative AI are revolutionizing the approach organizations take to software development, testing, and delivery, enabling standardization and scalability across the board, including test automation and management. Like other sectors, financial institutions struggle to match the rate of transformation necessary to maintain a competitive edge.

Financial institutions leveraging these technologies are uniquely positioned to capture valuable information for the onboarding of employees and customers, accelerate ID verification, maximize speed to personalization, and more to enhance the customer experiences and cross-sell/upsell opportunities.

What is driving the banking transformation today?

Technology, innovation, and workforce transformation are reshaping the banking industry. But companies are struggling to align these people, processes, and technologies in the right place and at the right times. According to a recent report by EY, 38% of banking leaders say transformations underperform against key performance indicators (KPIs). In parallel, two-thirds (67%) experienced at least one underperforming transformation in the past five years.

We found there are a few other areas where financial services companies are feeling the pressure to modernize, and should be included in any transformation strategy:

• Shifting customer expectations and experiences: Consumers have grown to expect a personalized experience in every application, and that expectation extends to their bank. More customer interactions are moving out of the branch and onto a smartphone screen. Technology is becoming more sophisticated and pervasive throughout financial services.
• Repurposing branches: Traditional banks and building societies face the huge task of repurposing their branches, especially in the aftermath of the COVID-19 pandemic. It remains to be seen whether branches can provide superior value compared to mobile and digital solutions. It is certainly worth considering how a branch network could work alongside complementary services in the community and how they may be the lifeline in rural areas.
• Frictionless and omnichannel outcomes: Frictionless e-commerce experiences do not necessarily equate to e-wallets or contactless payments. As customers expand and deepen their use of digital technology, financial services providers have a greater incentive to capitalize on omnichannel banking experiences. The proliferation of devices and interfaces allows businesses to meet the customer across every touchpoint and deliver a highly personalised, high-quality experience.

Usage of generative AI for testing in banks and building societies

Repetitive, hard skills such as basic automation, data entry, and more are best handled with AI, leaving humans to handle the innovation, the ideas, and the creativity. Generative AI, like Chat GPT, can currently only complete the actions it is told to perform. When it comes to test automation and management, AI must be trained to manage different scenarios.

Automated testing and test management can be used to test a wide range of banking-related processes and systems, including online banking systems, mobile banking apps, and backend systems for processing transactions and managing customer data. Moreover, generative AI can be leveraged to augment these tests, specifically in terms of security. It can simulate diverse and complex scenarios that might be overlooked in manual testing, helping to identify potential vulnerabilities, and ensuring that systems are sufficiently fortified against threats. This is crucial in the world of banking, where security and trust are paramount. The key is setting the standard for fast and fail-safe onboarding when banking in a generative AI world.

Regulatory compliance emerges as the most significant consideration in deploying test management solutions in the financial services sector. Regulatory bodies enforce stringent rules to protect consumer interests and maintain the industry’s integrity, and any technology employed must adhere to these. Failure to comply could lead to severe penalties and reputational damage. Therefore, any test management solution must be not only robust and efficient but also fully compliant with relevant regulations.

Unlocking the value of test automation for a brighter future

It can be an exceedingly challenging task to evaluate financial services applications. The task requires working with an experienced testing partner, and that’s where Tricentis and DXC can help. Tricentis offers the most comprehensive set of test automation capabilities to address your top challenges, so you can test broad multi-application businesses processes, dynamic, agile-developed applications, and vendor-specific customizations and add-ons.

Unlocking the advantage of AI for banks and building societies means leveraging unique subject matter expertise to build robust digital testing solutions. The first step to getting there is establishing a technological foundation to drive your testing automation and management strategy. Tricentis test automation products improve quality and reduce testing time significantly, while checking the boxes for security, flexibility, and ease of use.

Find out more

Learn more about how Tricentis can help your financial services business achieve digital transformation.