Here’s Financial Service Companies Must Take Application Performance Into Account

Here’s Financial Service Companies Must Take Application Performance Into Account


4 min read

For financial services companies to succeed, the success of their online applications is crucial. However, the industry’s highly regulated structure and security concerns make developing and managing web apps much more challenging. Many banks, credit card companies, insurance companies, and corporations that process online payments rely heavily on their websites, web apps, and mobile apps for revenue.

Glitches in the app or even brief issues in transaction processing can cost millions of dollars in missed sales and damage brand equity.

Customers are cautious about leaving banks since they have a lot invested in the financial services provider, even if a specific task in their banking app or a payment request from their credit card fails. However, if they have a negative experience, they’ll report or post about it online.

Financial services firms are aware of the expenses incurred by the congestion of customer support calls. For instance, running a call center might cost banks $5 to $15 per minute. Depending on the size of the outage and the number of people affected, social media criticism can have a substantial short- and long-term impact on your organization.

The main takeaway is that in financial services, the impact of poor application performance may be indirect, unlike in any other industry. However, if unchecked, it can be equally devastating to the firm and significantly impact revenue.

Read: Challenges In Fintech and How To Fix Them

Increasing Mobile Users

The value of mobile performance will only increase as users make more financial transactions using mobile devices. Most people in developing countries majorly use mobile to access the Internet. When users visit your banking or insurance app from various geographic places using different devices running on several wireless providers and other software, testing and preparing your application to withstand these diverse use scenarios is crucial.

Users are highly impatient and demanding when it comes to mobile commerce. Adjustments or changes that could lead to customer happiness could also lead to dissatisfaction. Hence, you must implement a performance-first strategy to your mobile-first approach.

Mobile Usage Market

According to market trends, mobile banking is already widespread. A Juniper Research prediction states that by 2024, people will use mobile devices for more than $1 trillion in financial transactions. Over 3 billion individuals, or over 50% of the world’s population, will conduct business using mobile devices by 2021. The fundamental forces behind this massive rise in emerging nations are tech-savvy millennials and Gen-Z, born into the digital era.

COVID-19 hastened the growth of mobile banking. The lockdown procedures encouraged clients to use home banking and boosted the global adoption of mobile banking. Organizations understood the requirement for banking application testing.

How to improve App performance?

Brand Insights

Focusing on the customer perception of the brand is a critical step in improving app performance. Through sentiment analysis, companies can identify the brands that users prefer and compare user perceptions of their brands with competitors. This strategy further helps companies by enabling them to leverage data to create compelling brand strategies.

Product Level Insights

Organizations can use sentiment analysis also to understand ways to improve their product. They can analyze characteristics of similar apps that users find beneficial and similarly enhance their app. Banks can use these features to bridge gaps in their user experience and modify their app to accommodate user requests better.

Competitor Research

Competitor benchmarking is essential because it helps organizations establish a clear understanding of the competing apps. Through software testing in financial services, organizations can use competitor research to get a picture of the gaps they need to fill and the opportunities they should seize. By emulating the popular app features of your rivals, you can streamline and organize your product development efforts.

As modern technology broadens the range and improves the quality of data sources, access to data flows becomes an essential resource. Businesses’ ability to access and comprehend these constantly expanding data flows will form the basis of their capacity to meet customer expectations. To stay competitive, companies must reevaluate their data strategy and balance the need to secure and share sensitive data with allies.

How can proactive application monitoring help?

You can prevent operational nightmares and detect and fix application issues before they impact end users by actively monitoring your websites, online and mobile applications, and the underlying APIs by investing in a software testing platform. You can use application monitoring tools to monitor your applications’ availability and the efficiency and accuracy of complicated user operations like processing payments and filling out forms.

Experts in the financial sector don’t require us to explain the importance of ROI. Profitability is a product of reliable, high-performing applications, client retention, and loyalty. Client retention, loyalty, and high-performing and reliable applications ensure profitability. Investing in tools that can help you test your apps is essential. These tools can keep your apps secure, avoid performance issues, and help boost user experience and sales.