As of May 30, 2024, the major banks in New Zealand have to be ready to provide consenting customers to securely share their banking data with authorised third-party providers through methods such as standardised Application Programming Interfaces (APIs). This practice is called Open Banking, and it is revolutionising the way New Zealanders manage their finances. Prior to implementation, the API Centre released its Minimum Open Banking Implementation Plan outlining the firm timelines for the main banks to be operationally and technically ready.

Designed to empower Kiwis with greater control over their financial data, open banking permits these financial institutions to securely share and exchange customer data. This allows better alternative deals and enhanced customer experiences while fostering competition and innovation in the financial sector. It also opens the door to a new wave of innovative financial products and services.

However, with such agility, open access and sharing of critical financial data comes the need for a strong system that is reliable and secure. A robust Quality Assurance (QA) strategy is required to ensure the success and trustworthiness of open banking initiatives. By rigorously testing APIs and ensuring the security of data transfers, QA can help mitigate risks and build trust with consumers.

A successful QA strategy should focus on:

Adhering to security and compliance regulations

Security and compliance will be critical to the platform as it allows the exchange of sensitive financial data, as part of the consumer data right framework (CDR). This necessitates rigorous security testing and adherence to regulatory data governance requirements. QA will play a critical role in identifying vulnerabilities, conducting penetration testing, and ensuring secure data transmission.

Robust API testing

On the back of a rigorous security governance, APIs form the backbone of Open Banking systems, enabling seamless and secure data exchange between banks and third-party providers. Thorough API testing is essential to validate functionality, reliability, and interoperability. API testing ensures that APIs are well-documented, properly integrated, and conform to industry standards. This ensures smooth communication, data consistency, and compatibility across diverse systems and applications.

Secure data sharing

Open Banking relies on accurate and reliable data sharing. The QA focus on verifying the integrity and consistency of data exchanged between banks and third-party providers. Data provisioning and testing along with reconciliation will aim to ensure that data is accurately transmitted, transformed, and reconciled across different systems.

Optimising performance

When it comes to the platform the Open Banking systems must handle high volumes of transactions and user requests efficiently. System performance and scalability will be critical to provide responsiveness, throughput, and resource optimisation. Performance testing and optimisation will help in identifying bottlenecks, optimise system configurations, and ensure the system can handle increased user demand. Providing a seamless user experience, even during peak usage periods will be critical to meeting customer demands and expectations.

Ensuring a seamless user experience

Along with customer demands and expectations of the platforms, user experience is pivotal in driving adoption and satisfaction with Open Banking services. Focus on usability testing, interface validation, and compatibility across devices will ensure the platforms in place are intuitive, visually appealing, and accessible to all users… increasing customer engagement and loyalty.

How Planit can help

As we prepare for the new era of open banking, ensuring the trust, security, and reliability of financial services is crucial.

Planit, with its extensive experience in banking and financial services, is an invaluable partner in the implementation journey. Our experience across diverse range of QA services includes API validation, data integrity, performance optimisation, user experience, and security. Our comprehensive services and unparalleled expertise provides financial institutions the assurance that we are well-equipped to support the successful implementation of Open Banking initiatives in New Zealand.

About Planit

At Planit, we are committed to helping you deliver the highest standards of testing and quality for your projects. Whether you need advice, guidance, or support, don’t hesitate to contact us and let us know how we can help you achieve your goals.

Contact us today at planit.com.