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Leveraging API Testing to Create Banking Apps Customers Love

Table of Contents

How open banking changed how banking works? 

What is technology if it doesn’t evolve every day? While we let that question sink in, let us look at how technology has evolved in banking. We no longer stand in lines in a bank to update our passbooks. We no longer use cheque books as popularly as we used to. And no longer awaiting money transfer confirmations. Banking in today’s world is digital, fast, seamless, and accessible. Metaverse banking, cryptocurrencies, and innovative solutions are taking over the banking industry. Open banking is one such trend that banks have widely adopted.

Open banking as a concept has emerged only recently as a result of technological advancements and changing consumer preferences in the banking industry. It allows banks to share customer data with third-party providers through open application programming interfaces (APIs), creating a more collaborative and integrated financial ecosystem. Open banking has gained immense popularity in today’s banking world due to its potential to revolutionise the traditional banking model, increase competition, and improve customer experience. With more and more countries adopting open banking regulations and innovative fintech startups entering the market, the future of open banking looks bright and promising.

Open banking offers benefits that go beyond consumers. Financial institutions can also leverage open banking to access a broader range of financial products and services, which can help them grow their business and compete in the market. By accessing third-party products and services, financial institutions can use consumer data to develop new products and services.

How does open banking create a need for API testing?

Open banking has revolutionised the financial industry by providing a platform for third-party providers to access banking data and services through APIs (Application Programming Interfaces). These APIs enable the exchange of data between various systems and applications. As a result, the need for API testing in the context of open banking has become increasingly important. API testing ensures that the APIs can handle high volumes of requests, function correctly in the meantime, and maintain the security and privacy of customer data.

As open banking involves multiple parties, including banks, third-party providers, and customers, it is crucial to test APIs to ensure that they function seamlessly and meet regulatory requirements. With API testing, financial institutions and third-party providers can ensure their APIs’ reliability, security, and effectiveness, thereby enhancing the overall customer experience.

Why is API testing so crucial for the banking industry?

API testing is crucial for banks for several reasons.

First, APIs are the backbone of open banking, enabling data exchange between various systems and applications. Whenever an API suffers from a major malfunction, customer experience is significantly impacted, ultimately creating reputational damage for the bank.

Second, banks must comply with various regulations and standards, such as PSD2 (Payment Services Directive Two) and GDPR (General Data Protection Regulation), which require the assurance of security and privacy of customers’ data. API testing comes highly recommended for ensuring compliance with these regulations.

Third, banks need to ensure that their APIs do not break down or slow down when under a high volume of requests and can scale to meet growing customer demands. API testing can help identify any performance issues and bottlenecks before they impact the end users. In summary, API testing is crucial for banks to ensure their APIs’ reliability, security, and effectiveness, thereby enhancing the overall customer experience and maintaining regulatory compliance.

Build your customers’ an authentic banking experience with Qapitol.

Advantages of API Testing 

SPER Market Research estimates that the API Testing Market will reach USD 6.98 billion by 2032, with a CAGR of 20.62%. This proves that not only is API testing beneficial, but it is also widely adopted by enterprises in different industries, especially in the banking industry. Here are some expected benefits of API testing:

  • Early Detection of Bugs and Issues: Automated API testing allows software development teams to identify bugs and issues in the early stages of development. This means that bugs can be fixed before they become more costly and time-consuming to fix.
  • Improved Test Coverage: API testing provides a greater degree of test coverage than other forms of testing such as GUI (Graphical User Interface) testing. API testing ensures that all system components are tested at once by testing the underlying functionality of APIs.
  • Faster Test Execution: API testing is faster than GUI testing as it bypasses the need for a user interface and directly tests the API. This results in faster test execution times, enabling software development teams to test more frequently.
  • Increased Test Automation: API testing is highly suitable for automation. Automated tests are executed faster and more consistently than manual tests, reducing the possibility of human error and enabling teams to test frequently.
  • Better Collaboration: API testing promotes better collaboration among teams, facilitating communication between different teams involved in software development. This allows teams to identify and fix issues quickly, leading to faster software development and release cycles.
  • Greater Scalability: APIs are designed to be scalable, and API testing ensures that APIs function optimally at different load levels. This means that software applications can handle different levels of traffic and user demand.
  • Improved Security: API testing also helps improve software application security. By testing APIs for vulnerabilities such as injection attacks and cross-site scripting, teams can identify and address security issues before they become problematic.

How can Qapitol’s API test automation help?

Choosing Qapitol’s API test automation can help you deliver quality products while ensuring compliance with regulations, such as reducing the risk of regulatory penalties. Qapitol adopts agile methods to ensure reduced risk of cyber attacks by identifying and addressing security vulnerabilities before they can be exploited. We will also enhance the customer experience by ensuring that APIs function as expected and providing a seamless and personalised banking experience. Want to improve efficiency by speeding up the testing process and identifying issues quickly? Get in touch with Qapitol’s team today! Time to accelerate your time-to-market and ensure your bank stays ahead of the competition!

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