Cloud-based API-centric core banking systems are, in a word, great!  

Why? Because they provide extraordinary benefits.  

However, testing a cloud-based, API-centric core banking system presents unique challenges and complexities for which you may not be ready.  

For a more in-depth understanding, please download our expert whitepaper “Cloud Testing” by Alejandro Moreno. 

Cloud-Based Testing Challenges

Here are some highlights of the primary difficulties involved:   

1. Complex Integration Testing

• • Multiple APIs: With numerous APIs interacting with each other and with third-party services, ensuring seamless integration and interoperability can be challenging. 

• • Dependency Management: Dependencies between various microservices and external systems need to be carefully managed to avoid failures. 

2. Data Privacy and Security

• • Sensitive Data Handling: Ensuring that sensitive financial data is protected during testing is critical, requiring robust anonymization and encryption techniques. 

• • Compliance: Adhering to regulatory requirements such as GDPR, PCI DSS, and other banking regulations adds an extra layer of complexity to testing. 

3. Cloud-Based Performance and Scalability Testing

• • Load Testing: Simulating high loads to test the system’s performance and scalability can be resource-intensive and requires sophisticated tools. 

• • Latency: Ensuring low latency and high responsiveness, especially under peak loads, is crucial for a seamless user experience. 

4. Environment Consistency

• • Test Environment Setup: Replicating the production environment in the cloud for testing purposes can be difficult, requiring careful configuration and management. 

• • Environment Drift: Keeping test environments in sync with production environments is essential to ensure test results are accurate and relevant. 

5. Test Data Management

• • Data Availability: Ensuring the availability of relevant and representative test data without compromising sensitive information is a significant challenge. 

• • Data Synchronization: Keeping test data synchronized across multiple environments and services can be complex. 

6. Continuous Testing in CI/CD Pipelines

• • Automation Complexity: Automating tests for a cloud-based, API-centric system can be intricate due to the need to cover numerous scenarios and configurations. 

• • Frequent Changes: Rapid updates and continuous deployment mean that testing must be efficient and capable of handling frequent changes without compromising quality. 

7. Service Dependencies

• • Third-Party Services: Reliance on third-party services and APIs means that any issues or changes in those services can impact testing. 

• • Mocking and Stubbing: Effectively using mocks and stubs to simulate external dependencies during testing can be challenging. 

8. Security Testing

• • Vulnerability Scanning: Regularly scanning for vulnerabilities in a dynamic, cloud-based environment is essential – but challenging. 

• • Penetration Testing: Conducting thorough penetration testing to identify and mitigate security risks requires specialized skills and tools. 

9. Complex Workflows and Transactions

• • End-to-End Testing: Testing complex banking workflows and transactions end-to-end to ensure accuracy and reliability can be difficult. 

• • Transaction Integrity: Ensuring the integrity and consistency of financial transactions across various systems and components is critical. 

10. User Experience Testing

• • Multi-Channel Testing: Ensuring a consistent and seamless user experience across multiple channels (web, mobile, ATM, etc.) requires comprehensive testing strategies. 

• • Usability: Evaluating the usability and accessibility of the system for various user groups is essential, but it can be complex to implement. 

11. Regulatory and Compliance Testing

• • Compliance Requirements: Testing for compliance with various regulatory standards adds an additional layer of complexity and requires specialized knowledge. 

• • Audit Trails: Ensuring that all transactions and activities are properly logged and auditable can be challenging. 

12. Disaster Recovery and Business Continuity Testing

• • Simulating Failures: Simulating various failure scenarios and ensuring that the system can recover gracefully is essential but complex. 

• • Data Recovery: Testing data recovery processes to ensure minimal data loss and quick restoration in case of failures is crucial. 

Gilman Patrick LLC is pleased to announce our brand-new whitepaper, “Cloud Testing,” authored by team member Alejandro Moreno. Access the full whitepaper here (FREE): https://www.gilmanpatrick.com/cloud-testing-white-paper/