Automated Loan Origination Testing for Uninterrupted Banking Operations

Lending is becoming a highly specialized operation with credit appraisal being based on diverse data sources. With the advent of specialized Fintech companies, innovation and speed are becoming important aspects of the lending process. The phenomenon is not just restricted to consumer loans, but also to corporate lending. A consortium of banks recently provided MSMEs with a ‘59-minute loan approval’ portal in India.

The loan approval process is now governed by digital documents, profiling via multiple data sources and artificial intelligence (AI) algorithms. The pace and volume of innovation in this critical function, while exciting, also leaves financial institutions open to potential errors and omissions. In order to sustain a high pace of change and innovation, financial institutions have to invest in quality assurance (QA) practices that ensure no adverse impact.

Considering the volume of data and the intricate review and approval processes, using the traditional manual testing method will only slow the process and result in longer time-to-market cycles or inconsistent testing. This demands the use of the automated testing solution for loan origination system (LOS) which is faster, accurate and efficient.

Automated LOS testing – The need of the hour for banks

Manage dynamic and complex business workflows lending business workflows are complex and differ with each lending or loan product, and customer requirements. Manually testing the product and ensuring its optimal coverage in a short span of time is a tedious process and requires manpower and effort. Automating this process makes testing ever so easy.

Evaluate complex eligibility and scoring methods Evaluating customers based on their income and other parameters to calculate their eligibility and score for a loan is complex and requires various datasets. With the help of data-driven automated testing and automated data generation or extraction capabilities, the process can be made easy and faster.

Large-scale integration and data-driven testing capabilities Automated testing help in end-to-end testing of LOS that integrates with multiple systems. Verifying various APIs at an early stage of the project life cycle becomes easier too. It also helps with data-driven testing for individual workflows and rules across multiple data sets.

Automation allows for agile development and regression testing Most of the application development today uses agile methodology. Automation allows testing to go in parallel with the development activity, where smaller batches of testing can be performed from test suites for each sprint. This results in faster and qualitative testing. An automation testing framework can eliminate difficulties in performing regression testing of all workflows and rules for multiple data sets.

Automating the testing of LOS will not only result in getting accurate results while testing many transactions, but it also will reduce the testing turnaround time by almost 60 to 70%.

Today’s customers demand the best and most timely service. Banks cannot afford delays and redundancies in their loan processing systems. To ensure the speedy launch of their LOS products banks must do away with manual testing processes that lead to duplication of data entry and data entry errors that negatively impact the customer experience.

Count on the Tenjin Test Automation Suite that offers superior business and technical benefits to ensure uninterrupted banking operations and improved business performance—with minimum effort on the team’s part.