Manual vs Automated Testing_ Which Approach Suits Fintech Better.pdf

Manual vs Automated Testing: Which
Approach Suits Fintech Better?
The debate between manual and automated testing continues to spark interest in software
testing. Rather than choosing one over the other, a combined approach often proves most
effective, especially in FinTech.
While automation streamlines repetitive tasks and regression testing, manual testing remains
vital for exploratory scenarios, usability evaluations, and user acceptance. Leading
Management Consulting Firms like McKinsey highlight how this balance ensures
comprehensive coverage, optimal software quality, and user satisfaction—critical for FinTech
applications with complex functionalities.
This blog explores the benefits of integrating manual and automated testing in FinTech and
offers insights into optimizing testing strategies for financial applications.
The Evolving Fintech Landscape
Fintech is expanding rapidly, fueled by innovations such as blockchain, AI-driven credit scoring,
and streamlined payment systems. At the same time, customer expectations for speed, security,
and seamless user experiences continue to rise.

Even minor glitches in fintech applications, such as delayed transactions or inaccurate loan
calculations, can quickly erode trust and lead to significant financial losses. For instance, a
digital wallet app that fails to process transactions during peak hours risks losing a large portion
of its user base.
Additionally, stringent regulations require fintech apps to undergo comprehensive testing to
ensure both compliance and security.
A robust and adaptable testing strategy is essential in this fast-paced environment. Let’s explore
the roles of manual and automated testing in achieving these objectives.
The Role of Manual Testing in Fintech
Manual testing, while time-intensive, brings a level of intuition and adaptability that automated
tests cannot replicate.
Key Areas Where Manual Testing Excels
1. Exploratory Testing: In fintech apps, exploratory testing is essential for discovering edge
cases and unexpected behaviors. For instance, testing how a financial management app
handles unexpected transaction increases due to sales can often uncover critical bugs.
Manual testers can identify these scenarios and evaluate the app’s response.
2. User Interface (UI) and User Experience (UX) Testing: A fintech app’s success
heavily depends on its usability. Consider a peer-to-peer lending platform: manual
testers can provide feedback on the intuitiveness of the navigation, the clarity of loan
terms, and the ease of completing transactions—all of which are critical to user retention.
3. Regulatory and Compliance Testing: Ensuring adherence to financial regulations often
requires subjective judgment. For instance, validating that the app provides appropriate
disclaimers, notifications, or opt-ins for GDPR compliance is best handled manually.
Stages of Manual Testing in Fintech
1. Unit Testing: Developers conduct unit tests to verify that individual components of the
application work as expected. Example: Testing a loan app's "Calculate EMI" button to
ensure it correctly computes the monthly installment.
2. Integration Testing ensures that different modules interact seamlessly. For example, it
checks whether a payment gateway correctly updates a user's wallet and sends
transaction confirmation after a payment.
3. System Testing: At this stage, the system is tested to ensure it meets the required
specifications. For instance, testing a digital wallet app during peak traffic to ensure
transactions are processed without errors.
4. UI Testing: This ensures that the app’s interface is user-friendly and functions across
devices. Testers would, for example, verify that all buttons and data visualizations on an
investment app’s portfolio screen are responsive.

5. Acceptance Testing: Conducted internally (alpha) and externally (beta), this testing
checks whether the app meets user expectations. For instance, testing a new recurring
payment feature ensures users can schedule and receive reminders smoothly.
Types of Manual Testing
1. Black Box Testing: Focuses on the app’s functionality without delving into its internal
workings. Testers only know the inputs and expected outputs.
Example: Verifying that a payment app successfully processes a $100 transaction and
updates the wallet balance without errors.
2. White Box Testing involves examining the system's internal logic and performance. The
tester must be fully knowledgeable about the app’s code and architecture.
Example: Testing the response time of a server when processing 100 balance inquiries
per second.
3. Grey Box Testing: A hybrid approach where the tester has some knowledge of the
system’s internal workings but not the full picture. It’s often used for integration testing.
Example: Testing the integration between a fintech app and a bank’s API during a fund
transfer to ensure both systems communicate properly and the transaction is processed
smoothly.
Manual testing is critical in areas where user experience, real-time context, and regulatory
requirements are most important. Its flexibility and human insight ensure that fintech
applications deliver seamless, trustworthy experiences.
The Role of Automated Testing in Fintech
Automation testing leverages scripts and tools to efficiently validate repetitive and large-scale
test scenarios. It ensures faster feedback cycles and is indispensable for ensuring the reliability
and scalability of fintech apps.
Key Areas Where Automation Testing Excels
1. Regression Testing: Fintech apps frequently update features to adapt to market needs.
Automation can validate that new changes don’t break existing functionality. For
instance, a banking app introducing a new savings feature must ensure that existing bill
payment and transfer functions remain unaffected. Automated regression testing is
perfect for this.
2. Performance and Load Testing: Scalability is crucial for fintech platforms, especially
during high-traffic events like tax season or flash sales on payment apps. Automated
Load-Gen tools like JMeter can help create scenarios where thousands of users access
the app simultaneously to identify performance bottlenecks.
3. API Testing: Fintech apps rely heavily on APIs to process payments, verify accounts,
and retrieve data. Automation ensures APIs are tested for functionality, performance,

and security. For instance, validating that a payment gateway API correctly processes
transactions across various currencies can be done swiftly using automation.
4. Security Testing: Automated tools can identify vulnerabilities like SQL injection or data
leaks. For example, automated tools can rigorously test a trading platform’s login
mechanism for vulnerabilities.
Implementing a Test Automation Strategy for Fintech
Applications
A well-designed test automation strategy is key to maintaining seamless performance and
scalability. Let’s explore how automation can be effectively implemented in FinTech use cases.
Use Case: Automating Testing for a Digital Wallet App
Objective: Ensure smooth user experiences and security, especially during high transaction
volumes.
1. Set Goals
● Short-Term: Automate critical features like login, money transfers, and transaction
history.
● Long-Term: Achieve continuous testing for every deployment to speed up releases and
minimize manual intervention.
2. Testing Approach
● Use a test pyramid strategy: Start with unit tests for transaction logic, integration tests
for API functionality, and end-to-end tests for core workflows (e.g., fund transfers).
3. Choose a Framework
● A hybrid framework combining data-driven and modular testing is ideal. It allows for
scalable test scenarios and flexible updates.
4. Test Environment
● Separate environments should be created for development, staging, and production.
Parallel testing on various devices and configurations should be ensured to catch issues
early.
5. Risk Analysis
● Identify potential risks, such as API failures during peak load times or issues with
third-party payment gateways, and plan mitigation strategies.

6. Create, Execute, and Maintain Tests
● Start by automating basic workflows, such as sending and receiving payments. Run
regression tests after every deployment and update test cases as features evolve.
7. DevOps Integration
● Integrate tests into the CI/CD pipeline to provide instant feedback on code changes. This
will allow developers to see the results of their work quickly.
8. Test Reporting
● Provide clear reports on pass/fail rates, API response times, and error logs. Ensure
these are understandable for both technical and non-technical stakeholders.
9. Review and Improve
● Analyze failed test cases regularly to identify false negatives and improve test scripts.
Periodically revisit the strategy to align with changing business needs.
Blending Manual and Automated Testing in Fintech
Fintech applications demand rigorous testing due to their complexity and the critical nature of
financial data. To highlight the practical differences between manual and automation testing,
let’s explore a real-world example of a loan eligibility calculator feature in a FinTech app.
Use Case: Loan Eligibility Calculator Testing
Ensure accurate loan eligibility calculations based on user-provided inputs like income, credit
score, liabilities, and tenure.
Comparison: Manual vs. Automation Testing

In fintech apps, both manual and automation testing are indispensable:
Manual Testing
● Best for edge cases and exploratory scenarios, such as validating unique loan profiles
outside standard inputs.
● Useful in early development stages for UI/UX evaluation and user-driven test scenarios.
Automation Testing
● Effective for repetitive tasks like regression and performance testing.
● Ensures rapid, consistent validation of large-scale input scenarios.
Integrated Approach
● Use manual and automation testing strategically to enhance outcomes.
● Employ automation to identify vulnerabilities in security testing, with manual testing to
verify fixes and test complex attack scenarios.

Concluding Thoughts
The choice between manual and automated testing is not binary but complementary. Manual
testing offers precision and adaptability for nuanced scenarios requiring human judgment, while
automated testing ensures scalability, consistency, and efficiency for repetitive and complex
tasks.
To achieve reliable and efficient testing, FinTech companies must adopt a balanced strategy that
aligns with project goals. By integrating both approaches and tailoring the strategy to the
application’s specific requirements, organizations can deliver secure, robust, and
high-performing FinTech solutions.
HeadSpin offers access to thousands of real devices across 50+ locations globally, ensuring
your app performs flawlessly under real-world conditions. Whether regression testing for feature
updates or exploratory testing for usability, HeadSpin provides the tools to elevate your app’s
quality and user experience.
Article Source:
This article was originally published on:
https://www.headspin.io/blog/manual-vs-automated-testing-fintech-approaches

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