Validata Blog: Talk AI-powered Testing

Global regulatory requirements and constantly increasing transaction volumes demand greater operational efficiency and risk management. Financial institutions need efficient Reconciliation and Investigation capabilities to reduce financial risk. These capabilities help identify payment errors, discrepancies, or irregularities early in the payment process.

The race to adopt ISO 20022 for Swift cross-border payments and reporting messages has started and must be completed by November 2025.

Glitches in a bank's software system can pose significant challenges, disrupting the daily lives of customers. In the banking sector, the real-time testing of complex software is crucial but challenging, given the rapidly changing requirements that must align with customer expectations. Despite allocating substantial resources to enhance security against external threats, there is often an underestimation of the importance of thoroughly assessing the quality of the code itself. In 2023, software malfunctions garnered considerable attention, repeatedly putting banks in the headlines. Below are some notable software failures from the year:

Relying on manual spreadsheets for reconciliation, despite the prevalence of automated tools in the industry, seems to be an unconventional decision. This choice may be attributed to factors such as not having taken the time to transition to a reconciliation platform, a belief that the current system is functional, a preference for the familiar spreadsheet interface, or simply adhering to established practices where reconciliation is not considered a top priority.