{"id":1580,"date":"2016-08-19T09:17:42","date_gmt":"2016-08-19T09:17:42","guid":{"rendered":"http:\/\/www.gallop.net\/blog\/?p=1580"},"modified":"2018-10-05T16:24:03","modified_gmt":"2018-10-05T10:54:03","slug":"fintech-revolution-and-the-growing-need-for-performance-testing","status":"publish","type":"post","link":"https:\/\/www.cigniti.com\/blog\/fintech-revolution-and-the-growing-need-for-performance-testing\/","title":{"rendered":"FinTech Revolution and the Growing Need for Performance Testing"},"content":{"rendered":"

During his tenure as Chief Economist at the International Monetary Fund, Raghuram Rajan (now the Governor of the Reserve Bank of India) delivered a controversial paper that addressed certain issues in the financial sector and introduced the term \u2018tail risks\u2019 and its impact on the banking sector. These and many more reasons were addressed, which could lead to global financial crisis.<\/p>\n

This was followed by the global financial crisis of 2007-09, considered as the worst after the Great Depression of the 1930s. While we could focus on few factors, it was practically an outcome of combination of various factors that resulted in the crisis. Post the entire turmoil, there was a conscious awakening in the financial services segment and many necessary amendments and reforms were made.<\/p>\n

Financial Technology, popularly referred to as Fintech, are organizations \/ start-ups that leverage various technology platforms to efficiently offer financial services. Essentially, Fintech is considered as the \u2018fourth industrial revolution\u2019, which has impressively created waves even at a nascent stage.<\/p>\n

Fintech firms are here to revolutionize and offer a secure interface for taxpayers and the customers in the vast economic diaspora. It is a joint venture of software geeks and Venture Capitalists, who plan to create a phenomenal shift in the way economies perceive the financial services market.<\/p>\n

This phenomenon is definitely creating a buzz with the kind of investments it has attracted. It is estimated that these start-ups have attracted $12 billion of investment in 2014, which is $4 billion more than in 2013. Goldman Sachs estimates that the total worth of the Fintech market is worth $4.7 trillion. Fintech firms cover an entire gamut of services in the financial services domain, namely, online utility payments, wealth management, and Crowdfunding.<\/p>\n

Fintech start-ups have successfully got their hands on the pulse of the consumers today, where there is a soaring demand for credible and secure interface for accessing digital services. <\/strong><\/p>\n

This growth and upsurge has been triggered by various surveys and studies done by market research and analyst firms. An analyst report<\/a> projects that the global Fintech investment market is estimated to grow at a CAGR of 54.83% during the period 2016-2020. By drawing this kind of attention, the Fintech revolution has attracted eyeballs and massive expectations.<\/p>\n

As we understand, the Fintech industry segment is evolving rapidly and the growth index has been set. Now, the way forward is to focus on the most crucial factor \u2013 Customer Satisfaction<\/strong>. Today, Fintech firms are in the process of conceptualizing and offering business critical financial applications for the banking sector, financial institutions, and even directly for the customers.<\/p>\n

But as they say, with great opportunities, there come greater Challenges!<\/p>\n

Operating in the financial services domain poses a lot of challenges, as it entails tremendous risks. Irrespective of the domain of business, Fintech firms deal with sensitive data and customer base to process and serve. Secure interface and robust performance defines the success factors for this domain. Additionally, the industry has to adhere to various compliance guidelines and regulations governing the financial services sector.<\/p>\n

Consequently, testing the performance of these business critical applications is imperative for evaluating their speed and effectiveness in the marketplace. Specifically, in a socio-economic environment which is highly volatile and prone to risks.<\/p>\n

For instance, while dealing with banks and financial institutions, Fintech firms have to conform to various compliance issues of the banks. This specifically pertains to hosting on the Cloud.<\/p>\n

In such an ecosystem, it is essential to collaborate with a strong and experienced partner for a comprehensive testing framework and strategy. <\/strong><\/p>\n

Let\u2019s encapsulate the compelling reasons for Performance testing and its importance.<\/p>\n