Software Development & Testing Challenges in Finance & Banking

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WEBINAR:
Software Development & Testing Challenges
in the Financial Services Industry
May 24th, 2018 – Adam Sandman

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3 | 5/29/2018 © Copyright 2006-2018 Inflectra Corporation
Agenda
 Challenges in Banking & Finance
 Horror Stories
 Testing and Compliance Tools to Reduce Risk
 Managing Testing & Compliance with SpiraTeam
 Automating Test Cases with Rapise
 Q&A

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Challenges in
Banking & Finance

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What are some of the top challenges?
Compliance with regulations
Sarbanes-Oxley (SarBox)
Dodd-Frank
FATCA
New Technology & Innovation
Cryptocurrencies and blockchain
Artificial Intelligence and high-frequency trading

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What are some of the top challenges?
Upgrade of legacy systems, M&A
 Clean-up of glued together systems from 2007 crisis
 Data migration to newer platforms
Cybersecurity and data-breaches
 General Data Protection Regulation (GDPR)
Customer Expectations
 Mobile banking
 Mobile payments
 Banking ‘anywhere’ and ‘everywhere’

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Horror Stories
aka Case Studies

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RBS IT Upgrade Failure
 Upgrade of core payments system (CA-7 software) failed,
resulting in disruption of bank payments for ~ 2 week
 Affected RBS, NatWest and Ulster Bank payments
 Inability to make payments, access cash from ATMs
 Double entry of payments, corrupted transactions
 Business Impact
 RBS Fined £56m by Bank of England and FCA
 Loss of customers and reputational impact
 Two years later, the same thing happened again, 600,000
customer payments went “missing”

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Why Did It Happen?
 The bank’s archaic technology systems struggled with the
growing weight of customer transactions spurred by digital
banking.
 The regulator told banks to make sure their computers are
able to support millions of their customers’ accounts after
RBS’s earlier failure highlighted the antiquated state of
many of their systems.
 (https://www.theguardian.com/business/2015/jun/17/rbs-fails-to-make-600000-
payments-customers-it-technology-failure-bank)

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TSB Data Migration Failure
 Customer accounts were migrated from existing platform
managed by Lloyds Banking Group to new Proteo platform
 Capacity Issues
 Web, mobile, branch banking not available
 Data Integrity Issues
 Customers could see each other accounts
 Business Implications
 Instead of saving £ 100m/year, it will cost ~ £30m in incentives to
retain people, plus fines of > £ 70m
 Would have been worse if GDPR was already in force

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Why Did It Happen?
 “The conversion of the systems – the data and the interface
accessing the data, which links up to the banking system –
clearly has not been well-tested before it went online,”
 Shujun Li, a professor of cybersecurity at the University of Kent’s School of
Computing.
 "The scale of the problem we saw is incredible. It’s impossible if they
had done systematic testing of the system. For me, it’s clearly a case
of management, rather than purely a technical problem.”
 (http://www.wired.co.uk/article/tsb-crisis-it-issues-online-banking-problems-
ibm-paul-pester-compensation)

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Testing and Compliance
Tools to Reduce Risk
The Inflectra Solution

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Inflectra Product Suite
Requirements and Test Validation
Platform
Test & Process Automation

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Requirements & Test Validation

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Requirements Traceability

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Shared Requirements
Ability to define core mandated requirements that are shared between
projects as well as project-specific features, use cases, and user stories.

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Audit Logging & Trail

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Speed and Agility with Compliance

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Controlled / Secure Access

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Automated Testing

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Data-Driven Algorithmic Testing

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Data Interoperability

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Application Demos

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Questions?
Please feel free to unmute your line, raise your hand, or
simply write your question in the Chat window.

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Thanks for Watching
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