How IoT testing is Transforming Banking and Financial Services

This is a guest post from our friends at Cigniti

The Internet of Things (IoT) has been expanding in various fields in recent years as a result of technological advancements that ignited the digital revolution by connecting nearly every item or piece of equipment we use to the internet.

The use of online banking services has become unavoidable because of the COVID-19 lockdowns.

To improve consumer engagement, banks and financial institutions must employ a variety of cutting-edge technologies such as IoT, Big Data, Cloud Computing, Artificial Intelligence (AI), and Machine Learning (ML).

IoT is seen as the next big thing in the banking and financial services industry.

According to Gartner, “The IoT is more than a distributed series of sensors and machines. It heralds a fundamental shift for banking CIOs, as exponential growth in data supply and access, combined with the rise of intelligent machines, will transform long-standing business models.”

We are seeing an increasing number of banks and financial institutions adopt policies and strategies to embrace digitization by incorporating IoT into their operations in the present global context.

IoT can assist banks and financial organizations in optimizing and refining their operations to advanced levels of quality, not just by enhancing present procedures but also by incorporating innovative strategies.

IoT introduces a plethora of possibilities and chances in the field of banking software solutions.

It continues to grow as banks foresee the need to fix problems and increase efficiency.

How is the IoT expanding the growth of banking and financial services

The IoT in the BFSI trend is likely to gain traction as technology improves and knowledge of the benefits of online banking applications grows.

According to a report published by Fortune Business Insights, “The global internet of things (IoT) in banking, financial services, and insurance (BFSI) market is predicted to reach USD 116.27 billion by 2026, exhibiting a CAGR of 26.5% during the forecast period. The increasing investment of banks and financial institutions in IoT technologies will stimulate the growth of the market in the foreseeable future.”

During the projection period, the growing use of E-wallets, virtual assistants, self-assisted services, and highly verified security measures to protect funds from cyber-attacks will promote IoT in the BFSI market trends.

Leading companies’ increased focus on strategic collaborations and acquisitions to build banking applications for end-users will aid IoT in BFSI market growth in the near future.

In addition, the BFSI industry’s demand for IoT solutions is likely to grow as the demand for banking suite applications grows.

The growing use of IoT software in banking applications, which allows for the collection of facts, information, and user capabilities via surveys and feedback, as well as additional analysis of customer habits and improved decision-making, will help the industry develop.

While IoT is crucial to the BFSI sector’s growth, it is equally critical to have effective IoT testing in place.

What is the need for IoT Testing?

IoT is all about the amalgamation of devices and real-time data sharing. Performance issues in any area of the network might have a negative impact on the rest of the network.

A single node that has been compromised as a result of a cyberattack can also impair other nodes.

Robust IoT testing gives the system predictability and prevents unforeseen errors. You may simply identify weak network nodes ahead of time and take relevant steps to make the system more reliable.

It will enable the end-user to have a faultless customer experience. The susceptibility of IoT devices will aid you in determining the security and privacy of your data.

By obtaining control of the IoT network, hackers can modify the process or fake the data in the absence of bullet-proof cybersecurity.

As a result, extensive testing of the IoT device is required before each upgrade. Apart from that, the fragmented nature of the IoT ecosystem makes testing much more difficult.

To do this, you’ll need a broad and dependable testing group with many platforms and devices to ensure greater channel compatibility.

Besides, there are a few more factors to consider in order to ensure that IoT applications perform as expected:

• Verify that IoT devices are connected to sensors, the cloud, other IoT devices, and other elements that are required to provide a unified experience.
• Ascertain that IoT is capable of providing continuity.
• Check if it adheres to international regulations.
• Work in harmony and effortlessly with other IoT devices that are connected.
• Data created by the Internet of Things should be free of viruses and other security flaws.

The only effective solution to overcoming the above-mentioned problems is to conduct thorough testing of IoT devices.

In order to launch a reliable product with a shorter time-to-market, the common QA approach to testing IoT devices is to have shorter testing periods.

As a result, testing should be implemented from the beginning of the development phase to detect and correct faults as soon as possible.

In addition, as the cloud of things platform is increasingly deployed on IoT devices, the market will expand.

Cloud of Things Integration with IoT Platforms to Create Growth Opportunities

The growing need for IoT solutions in BFSI will further contribute to the market’s healthy expansion.

The benefits of analyzing and predicting fraud and risk associated with debit and credit card transactions will drive the demand for IoT technology based on cloud services among banks and financial institutions.

IoT will gain market share in BFSI as key players increase their investment and collaborative initiatives to deliver cloud services to banking institutions.

Furthermore, growing worries about security risks will boost the adoption of IoT security solutions, which will help the market develop.

Regardless of the size or location of a company launching a connected project, integrating IoT into the banking and financial segments has some common benefits.

Benefits of IoT in Banking and Financial Services

Users can use connected gadgets to develop good financial habits and deal with overspending.

Interact IoT, the world’s first IoT bank, began employing shock wearables as part of a user education campaign.

A wearable will track a user’s spending throughout the day after they’ve established a credit card limit. You’ll be warned when you get closer to the limit.

A wearable will transmit a shockwave to a user’s wrist if they ignore a notification, reminding them not to spend any more.

Customer management, business process automation, new forms of payment, and much more are all possibilities in the IoT and the banking industry.

IoT systems can handle requests, automatically disable credit cards in the event of late payments, and transfer asset ownership, among other things.

Instant loan processing and collateral monitoring will be possible thanks to the Internet of Things as a tool of automation.

Fintech businesses and banks that are prepared to take a chance and push the boundaries of IoT adoption will most likely be industry leaders in the future.

Closing thoughts

Banks and financial institutions must now translate data obtained from IoT into useful information that will assist them in making educated decisions.

Companies can grow their market share while also providing better services to their clients using the information acquired.

Our IoT Test Automation framework provides reusability and modularity, just-in-time reporting, extensibility and service virtualization, and continuous integration of custom & packaged applications. Additional benefits include portability and forward integration, accelerators to shorten framework roll-out, high performance & short duration of test execution, and tests that are scalable and reusable across multiple platforms.

Global organizations have utilized our IoT Quality Assurance and Testing solutions to achieve end-to-end functional and non-functional testing for their IoT implementations. To address the heterogeneity of technology platforms, devices, and protocols, Cigniti’s IoT testing solutions provide the following key differentiators for IoT testing:

• Robust IoT testing infrastructure labs, consoles, simulators, test racks, etc. that help reduce Op-Ex.
• BlueSwanTM: Cigniti’s next generation proprietary testing platform that can expedite your digital transformation journey, and Customer Experience Sentiment Analyzer (CESA) for real-time insights across mobile, web, and device channels.
• Strong multi-disciplinary approach & multi-domain capabilities.
• Expedited testing using simulators and service virtualization.
• Collaborative testing using a globally located team.

Schedule a discussion with our IoT Testing experts to find out more about how IoT testing is transforming banking and financial services.