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Why is Banking Application Testing Important?

Published on: February 2, 2022

Why is Banking Application Testing Important?

The banking industry is one of the most critical industries globally, and when we talk about it, we find more reasons to worry about it. Banking applications hold a lot of sensitive information, including personal, financial, and any other critical information. One of the reasons these applications are so sensitive is that they deal with a lot of money. Banks deal with billions. So, it is not a surprise when we say that these applications need to be tested repeatedly to ensure that they are safe for use.

This blog on banking application testing will look at different aspects of testing banking applications and their importance of it.

What is Security Testing?

Security testing is a type of software testing used to search for security vulnerabilities in the application. Security testing is a part of every software testing process. In fact, security testing is an essential part of the software testing process. 

Security testing is performed to ensure that an application is secure and avoid losing important information or data. The application is checked based on specific parameters. It is analyzed for weak spots, such as unsecured interfaces or the lack of a firewall. 

The purpose is to determine if the application is vulnerable to attack. The test is performed by a team of security testers who are experts in various types of testing.

Understanding Banking Application Testing

Banks are in the business of money. They handle large amounts of money, and as such, are prime targets for hackers. Banks have to be especially careful about the kind of data they store and even more cautious about the type of data they share with their customers. 

Banks have a lot of data at their disposal, from personal customer details to business transactions and many more. All of this data is stored on a single system, making it easier for a hacker to gain access to it. To avoid this, banks have to be especially careful about their security. This is where the role of application security testing comes in.

Banking application testing is the process of finding vulnerabilities in banking-related apps. The testing can be done manually or by using automated tools. Banking security testing is performed to check whether the application follows the best security practices. 

Banking application testing is also done to ensure that the application is available for the users and offers a secure environment. To perform banking application testing, the testing team needs to be aware of the banking standards and regulations. They also need to test the application according to the rules of the financial sector. If the testing is not done in compliance with the regulations, the financial organizations could reject the testing results.

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Why is Banking Application Testing important?

Banking applications are among the most complex applications in today’s software development and testing industry. An application is responsible for keeping the financial and banking information secure and transparent. For this reason, banking application testing is an integral part of the overall software testing life cycle

Banks and financial institutions need to ensure their applications are secure. Customer financial information should not be compromised, and the banking application should be performing at its best. As the need for banking applications increases, so will the need for banking application testing.

Banks are not the same as other businesses. Their business models and strategies are much more complex than other industries. Due to the complexity of banks, their software is not just a simple app. Banking application testing is an essential part of the software development process.

The conversation around testing in the financial services industry focuses on compliance and regulations. Banks deal with a lot of complicated regulations. Regulators do not allow banks to make any mistakes in application testing, and if any error is found, the bank may have to pay a hefty fine, which can close their business. Because of the importance of application testing and compliance, banks spend a lot of money on application testing and try to find the best testers or outsourcing companies.

Reading Guide: 65% of Major US Banks Fail Web Security Testing

Why Banking Application Testing is important?
Image: Why Banking Application Testing is important?

Challenges in Banking Application Testing

It would be a mammoth task to test such an application running for more than 20 years now. What could be some of the challenges one can face in testing such applications? We have three significant challenges in testing such applications:

1. Complex Applications and Data

The complexity of the data often becomes difficult to address while testing a banking application. The data is often so complex that it becomes difficult to identify the problem. There is no one-size-fits-all solution to test complex applications. But some testing strategies can help you out.

2. Lack of Transparency

Banks are generally known to be businesses ruled by strict and rigorous rules. They are fully aware that having a loophole in their system can be a disaster. Banks are usually reluctant to share any information about how the systems are working under the hood, which makes testing banking applications a tough job.

3. Data Volume

The amount of data available on a day-to-day basis is so huge that it’s a challenge to test all the data. We have to test the application for various scenarios for a particular day. There are multiple data points for a day, which must be extracted and tested for the application. For example, if there were 5,000,000 transaction entries for a specific day, we need to try all the transaction entries.

What’s inside Banking Application Testing?

Banking applications are a particular category of applications that involve many security and compliance issues with higher expectations when it comes to how the application should work. So, how do you check that the application provides the expected results? There are several components of these applications that you need to test. 

1. Web Application Pentest

A web application penetration test is a type of security assessment that uses the same methods and tools as a standard penetration test but focuses on the security of an application’s code and infrastructure rather than the entire system’s security. A web application penetration test is designed to identify vulnerabilities in web applications that a malicious threat actor can exploit. 

A flaw in a web application can result in unauthorized access to sensitive information, such as customer records, in the application’s database, or it can result in the denial of service by consuming all of the application’s resources. A web application penetration test should provide the information needed to assess the risk level of each vulnerability and make recommendations for remediating the flaws identified in the test.

One small security loophole vs your entire web application. The risk is high!

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2. Mobile Application Penetration Testing

Mobile Application Penetration Testing is a process of testing a mobile application for security vulnerabilities. The goal of penetration testing is to find weaknesses in mobile security and report them to the developers.

Mobile application penetration testing can be done by either manual testing or automation testing. Mobile penetration testing is done by different security tools, such as decompilers, network analyzers, secret essential scanners, etc.

3. Network Penetration Testing

Network penetration testing is a security audit by which you check the security of a network. Network security is a broad term for protecting computer networks and their attached resources against damage or unauthorized access from outside.

Network Penetration Testing aims to find out the loopholes and vulnerabilities in the network. Network Penetration Testing ensures that the network is strong enough to protect the business against any network attacks.

Reading Guide: A Deep Dive into Different Types of Penetration Testing

Common Security Risks with Banking Applications

Banking applications are designed to process financial transactions. These applications are associated with many security risks such as phishing, ransomware attacks, SQL Injections, XSS, DDoS attacks, etc. Let’s understand these terms in depth.

1. Phishing

Phishing attacks are the most common threat that most of us face while using internet banking. Phishing attacks are well-designed emails sent to the victim to steal their credentials and financial information. Hackers use phishing attacks to steal information and get access to their accounts. Most of the time, it looks like a genuine email from the bank. The victim doesn’t know it is fake until they click it.

How Phishing Attacks Works?
Image: How Phishing Attacks Works?

2. Ransomware

The security risks associated with banking applications are all too common today, especially with the rise of ransomware attacks. Ransomware is malware that prevents users from accessing data until a ransom is paid. In some cases, the ransom is paid in the form of cryptocurrency. 

3. DDoS Attacks

A DDoS attack is a cyberattack where multiple compromised systems attack a single target, like a website or a server, to flood the target with requests. The goal is to make the site unavailable for its intended users. Banks are a common target for DDoS attacks because they store and process sensitive data.

The list of security risks associated with banking applications is never-ending, making Banking Application Testing a must.

Why is Astra a trusted Banking Application Testing Vendor?

When it comes to outsourcing your application security assessment, it’s hard to find a better option than Astra Security. Astra Security is a trusted banking application testing vendor that has earned the trust of many large banks and financial institutions worldwide. 

Astra Security has an outstanding reputation in the market and is known for its highly professional work, affordable pricing, and quickest turnaround time. Astra Security will help your organization to achieve the following: 

1. Enhance your application security 

2. Reduce the risk of a breach 

3. Help in reducing the testing costs

With Astra Security, you get a dedicated offshore security test team with the skills and experience to test your applications and find all the security vulnerabilities that could compromise your business or organization.

Why Choose Astra for Banking Application Testing?
Image: Why Choose Astra?

Conclusion

In this blog, we have covered the different aspects of what is involved in banking application testing and why it is so important. With the information we have shared, we hope you can make the most of the testing process and make the right decisions regarding the tools, techniques, and resources you need to succeed. If you have any other questions about this topic, please don’t hesitate to contact us anytime. We value any feedback you may have, and we are always excited to share our knowledge with others.

One small security loophole vs your entire web application. The risk is high!

Get your web app audited & strengthen your defenses!
See Pricing
Starting from $99/month

FAQ’s

1. What is Security Testing?

Security testing is a type of software testing used to search for security vulnerabilities in the application. Security testing is a part of every software testing process.

2. What is banking application testing?

Banking Application Testing is the process of finding vulnerabilities in banking-related apps. The testing can be done manually or by using automated tools. Banking security testing is performed to check whether the application follows the best security practices.

3. How much does a pentest for web applications cost?

The cost of penetration testing for web applications is between $700 and $4999 per scan depending on the scope of the test and the number of scans.

What is Security Testing?

Security testing is a type of software testing used to search for security vulnerabilities in the application. Security testing is a part of every software testing process.

What is banking application testing?

Banking Application Testing is the process of finding vulnerabilities in banking-related apps. The testing can be done manually or by using automated tools. Banking security testing is performed to check whether the application follows the best security practices.

How much does a pentest for web applications cost?

The cost of penetration testing for web applications is between $700 and $4999 per scan depending on the scope of the test and the number of scans.

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Ankit Pahuja

Ankit Pahuja is the Marketing Lead & Evangelist at Astra Security. Ever since his adulthood (literally, he was 20 years old), he began finding vulnerabilities in websites & network infrastructures. Starting his professional career as a software engineer at one of the unicorns enables him in bringing "engineering in marketing" to reality. Working actively in the cybersecurity space for more than 2 years makes him the perfect T-shaped marketing professional. Ankit is an avid speaker in the security space and has delivered various talks in top companies, early-age startups, and online events.
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