eBOOK

Banking andfinancial trends
Keys to stay ahead

Content
Guiding statistics

4Technology disruption

5

More contactless payments

5Open banking

6

Automate, automate, automate

7Summary

8

Next steps

8

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Banking and financial trends

Consumer financial applications have dramatically changed
the Banking, Finance Services and Insurance (BSFI) industry
over the past five years.
Seventy-three percent of smartphone users have signed
up for financial services and are using them regularly.1
Meanwhile, 92.3 million US consumers used proximitybased mobile payments at least once during a six-month
period in 20202—a figure expected to grow.

This guide explores technology trends in the financial
services industry:

These numbers show how much consumers rely on
financial applications. They expect them to work securely
and flawlessly, necessitating extensive software testing.
As a leader in financial services, you must prioritize
high application quality while avoiding testing bottlenecks
in the development process.

3. Automation

1. Contactless payments
2. Open banking
4. Implementation challenges

1 Mobile App Daily, An Insight into Best Mobile Banking Trends of 2023. (2023)
2 Forbes, How The Pandemic Changed Mobile Payments. (2021)

Read on to learn more and discover the keys to producing high-quality
financial apps—fast.

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Banking and financial trends

Guiding statistics
69%

69 percentof American
consumers said
fintech was a‘financial lifeline’
during the
pandemic.3

27%

19%

About 27 percentof Americans use
an online-only
bank, and of thoseat online-onlybanks, 88 percent
reported they aresatisfied with thebank’s services.4

19 percent ofpeople made theirfirst contactless
payment in
May 2020—
57 percent
predicted theywould continue
after thepandemic.5

42075%In Deloitte surveys,
Financial Services
professionals
have identified
tech and teamperformance as
the biggest priority
trends for theindustry, surpassing
other industries
such as Consumer,Life Sciences,
and Tech.6

75 percent ofsurveyed banking
executives claim
COVID-19 has
increased urgency
to modernize
payment systems.7

26%

96%

26 percent ofbanking executives
and 43 percent of
fintech executives
say they havethe right partner
for open banking.9

96% of organizations
say generative
AI is on theirboardroom agenda.10billion

420 billion
transactions
will switchfrom cash todigital payments
by 2023.8

3 Plaid Blog, Survey finds that fintech has been a lifeline during COVID-19; consumers say it’s the “new normal”. (2020)
4 Bankrate, Digital banking trends in 2023. (2023)
5 National Retail Federation, Coronavirus leads to more use of contactless credit cards and mobile payments despite cost and security concerns. (2020)
6 Deloitte, A Financial Services Industry Perspective: New fundamentals for a boundaryless world. (2023)
7 Accenture, COVID-19 Increases Urgency for Banks to Transform Payment Systems as Digital Payments Soar, Finds Research from Accenture. (2020)
8 Ibid.

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Banking and financial trends

9 Capgemini, World Fintech Report 2019. (2019)
10 Capgemini, Generative AI in Organizations

Technology disruptionMore contactless payments

Emerging technologies like AI, blockchain, and cloud computing are disrupting
the Financial Services industry. Firms are being forced to adapt to a rapidlychanging landscape and are shifting to a data-driven economy, where data isa key enabler of value creation.

According to HES FinTech11, the size of the digital payments market transaction
value in 2023 was $9.46 trillion. Over the next five years, the CAGR of digital
payments market transaction value is estimated at around 11 percent, equaling a
total growth to $14.78 trillion by 2027.

OpenText solution

At the forefront of contactless payments are ‘in-app’ transactions. According
to Digipay, In-app payments are becoming increasingly popular, with morebusinesses adopting this payment method.12 This has led to increased
competition and innovations in digital payment, resulting in improved user
experience and more convenient payment options.

OpenText™ ValueEdge Functional Test
Create resilient tests quickly and test anything, anywhere, on any platform.
ValueEdge Functional Test is a comprehensive, AI-powered cloud-based
solution for functional testing, offering business-centric model-based testing,codeless test authoring, and a testing lab for execution on any host, mobiledevice, or browser.

Learn more about performance engineering with
LoadRunner solutions.

OpenText solution
OpenText™ LoadRunner Family
Contactless payments require high-performing apps that surpass customer
expectations. To make this happen, every team member must be responsible forapplication quality. The LoadRunner family of performance engineering solutions
allows users to:• Confidently test app performance• Script with precision

11 HES FinTech, Digital Payments Trends to Watch Out For in 2023 and Beyond. (2023)
12 Digipay.guru, Top 7 Contactless Payments Trends to Keep an Eye on in 2023. (2023)

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Banking and financial trends• Detect anomalies

Open banking
Today people are more likely to invest their money rather than keep it in thebank, so third-party financial institutions are giving traditional banks a run fortheir money.
Third parties offer flexible high income-generating investments. Consumers
are keying into them via open banking, where they allow third-party service
providers to access their data for investment purposes via application
programming interfaces (APIs).
Although there are security concerns about data exposure in open banking,the trend is likely to continue. If you provide open banking services, or plan to,
you can mitigate threats through collaboration and the right security software.

OpenText solution
OpenText™ Fortify
Customers of open banking demand security. Fortify’s application security
platform automates testing throughout the CI/DC pipeline so developers canquickly resolve issues. With Fortify, users can:• Build secure software—fast• Attain actionable results with machine learning• Automate and scale security testing

Learn more about application security with Fortify.

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Banking and financial trends

Automate, automate, automate
Automation has greatly affected mobile finance development. Up-to-datebalance statements, financial application status updates, and other automaticconveniences are now commonplace.
You can use automation to speed up processes and reduce employees’
workload so that they have more time for critical projects. Automation can also
provide a better user experience for consumers. In short, your organization
can’t afford to rely on manual testing.

Learn how AI-powered automation reduces test
creation time and maintenance while boosting
coverage and resiliency.

OpenText solution
OpenText™ UFT One
Accelerate test automation with one intelligent functional testing tool for web,mobile, API, and enterprise apps.
Simplify and improve test creation, execution, and maintenance throughAI-powered intelligent automation. AI-based machine learning and advanced
OCR provide advanced object recognition. When combined with AI-based
mockup identification, AI-based recording, AI-based text matching, and image
based automation, teams can reduce test creation time and test maintenanceefforts while boosting test coverage and resiliency of testing assets.
• Test more than 200 technologies, including SAP, mainframes, Salesforce,and more.
• Gain fast, continuous testing feedback with source control andCI/CD integrations.
• Run tests at scale with cross-browser and cross-device mobile testing.

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Banking and financial trendsUnderstanding implementation challenges
Despite the enthusiasm for new technologies, Dilip Krishna, head of innovation
for Deloitte and Touche LLP’s financial services businesses, explains that
implementing them with minimal impact is difficult. “Financial executives now
have to figure out how to incorporate and apply new technologies, as well as
the short- and long-term impacts on existing processes and systems,” Krishna
says. “It’s always harder than you think, but with strategically taken risks cancome significant rewards.”13More people are using mobile technologies for their finances. Despitechallenges associated with introducing new software and processes, ensuringthat your applications delight customers is worth it.

OpenText solution
OpenText™ ALM Octane
When adopting new technologies, monitoring and optimizing value streams aremusts. With ALM Octane, you can:• Accelerate transformations from iterative approaches
to agile and DevOps practices.
• Align work from ideation to release—regardless of thenumber of teams, projects, and locations.
• Unify testing efforts across unit, integration,acceptance, security, and performance.
• Prioritize quality and ensure it at every stage with release management.

Learn how to optimize the flow of work forhigh-quality software delivery.

• Use dashboards and metrics for a visual, customizable
display of progress and quality.

13 Deloitte, Five fintech trends: What’s happening now, and the promise ahead. (2017)

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Banking and financial trends

Summary

Next steps

The rapid acceleration of technology is pushing financial
services and banking to rely on fast acting applications tokeep up with consumer and business demands.

Explore all the powerful solutions OpenText has to offer
the banking industry that improve engagement, security,compliance and visibility.

Here are a few takeaways to immediately focus on:• Contactless payment methods andautomation tools will help you thrive.
• Facilitating and protecting open banking
data will position you well in the future.
• OpenText has an array of software to help your financial
institution prepare and succeed for what lies ahead.

OpenText Banking Solutions
About OpenText
OpenText, The Information Company,
enables organizations to gain insight
through market leading information
management solutions, on premises orin the cloud. For more information about
OpenText (NASDAQ: OTEX, TSX: OTEX)
visit opentext.com.

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Banking and financial trends

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