This is particularly true with banking. In fact, almost 12,000 banks leverage SAP to manage assets worth $70 trillion. Yet again, both its core and banking modules come in handy.
At a time when the banking industry is undergoing rapid change. In large part due to digital transformation. In fact, achieving operational efficiency is as important.
The growing importance of digital transformation and operational efficiency in banking
Banks have to survive. It's important that they evolve with changing customer needs. Needs that emerging technologies can serve. Needs that make for excellent business cases too. Technologies such as AI, automation, advanced analytics, cloud connectivity, IoT and RPA.
This includes enterprise resource planning (ERP) as well. In the case of SAP, its banking modules drive digital transformation too. The importance of SAP testing is unmistakable.
Now, there are benefits associated with digital transformation in the banking sector:
Improves Customer Service
Digital-savvy customers want their banks to evolve. By offering online and mobile channels, banks can meet expectations. Apart from digital products and services. In this way, customer service improves.
Improves security and compliance
Cybersecurity and compliance have become necessary with the use of digital platforms. Certain technologies offer this benefit, much like the blockchain. This, again, is a benefit that makes digital transformation worthwhile.
Makes data-driven decisions
AI and predictive analytics help banks make informed decisions. As a result, there's accuracy in predicting customer behavior. In turn, tailored recommendations for their customers are precise too.
Automates mundane tasks
Automating mundane tasks such as opening accounts and processing loans save costs. Eliminating errors that result from using manual labor becomes a reality. This can only be a good thing.
Decommission legacy systems
There’s very little benefit associated with using antiquated and fragmented IT systems. Due to the dated nature of these systems, customers might experience issues. This might result in a bad reputation and financial loss. Using a modern ERP system can change this.
5 reasons to use the S/4HANA platform at your bank
Speaking of modern ERP packages, SAP is a market leader. S/4HANA, its cloud ERP solution, is its latest offering. Its software offers several modules that each cover a business function. This setup promotes digital transformation and operational efficiency from the get-go. From human resources management and financial accounting to customer relationship and project management.
As a prominent feature, S/4HANA harnesses the power of ML and AI. To analyze data and automate repetitive tasks. Apart from this, the S/4HANA package offers other benefits such as:
Flexibility, scalability and security in deployment
In being able to deploy on-premises or to the cloud, organizations enjoy flexibility. Being able to pick software for unique business functions takes this to the next level. Organizations can choose to scale up or increase privacy, thanks to such options.
Integrated workflows
SAP offers a wide range of solutions for every business process. Customized solutions specific to business needs. Yet the main benefit involves streamlining workflows from each of these business processes. This includes up to date information that is production related, with companywide impact.
Manage challenges
Customizable reports and dashboards can prove to be most useful. This is because the real-time insights generated can identify areas of improvement. Also, it can help managers zero in on any challenges before they cause any problems across the board.
Increase operational efficiency and cut costs
Streamlining information makes it possible for organizations to drive operational efficiency. Since data is available to all, reducing overhead costs is likely too. Also, this improves data accessibility and decision-making.
Reduces errors and increases productivity
SAP makes interactivity with its software easy with a simple interface. With its database accessible to all, this 'single source of truth' eliminates errors. In turn, this increases employee productivity too.
SAP banking modules: a closer look
The S/4HANA platform, with its core modules, is a foundation to manage all business processes. Still, there are industry-specific modules that can help banks go digital. Operational efficiency and business transformation can be optimized further. Even if the right SAP testing strategy can optimize this further.
In case everything works, here's how banking SAP software can help these financial institutions:
Digitize the product lifecycle
Use data-driven intelligence
Maximize financial insight and risk control transparency
Manage Employee Talent
Deliver sustainable financial products and services
Also, here are some examples of common SAP banking solutions:
Cloud for Banking (C4B)
Omnichannel Banking Cloud
SAP Datasphere
SAP Profitability and Performance Management
Financial Products Subledger
SAP Analytics Cloud
SAP Signavio Process Transformation Suite
Concur Travel
SAP Ariba Buying and Invoicing
But then again, software doesn’t always work as planned. This is why SAP testing is necessary.
How SAP testing can spearhead digital transformation and operational efficiency
Now, SAP tests can differ from context to context. There are others that are standard in nature. These include System Testing, System Integration Testing, UAT support, Regression Testing.
Yet all these tests play an important role in driving digital transformation and operational efficiency. This is because they ensure that all functional and non-functional aspects of the SAP software and its modules work as intended.
So, let us look at some of the most common SAP tests:
System Testing
This kind of testing occurs after integration testing. It tests whether all SAP modules that are fully integrated as a software solution work as intended. In particular, the software is checked by testers to see if the requirements have been met. After testing is complete, a decision whether the software is ready for end-users is made.
System Integration Testing
In integration testing, a group of SAP components or modules are tested together. This is to check if their functionality and interactions work properly in an integrated environment. Both manual and automated testing work to check if these modules as a system behave as intended.
User Acceptance Testing (UAT) Support
In UAT support, a select group of users are asked to test SAP functionality to see if it meets requirements. Only in this type of testing is the actual user brought in to see if the SAP component’s user-friendliness, performance and functionality as satisfactory.
Regression Testing
In this type of testing, it’s important to check if the functionality of older features remains. This is after new SAP features have been built. With select automated tools, an error-free application is the result.
Need an SAP Testing Partner? Try Qualitest!
There are several benefits that are associated with selecting the right SAP testing company. Not only will you increase operational efficiency but drive digital transformation across the board. As a result, your bank will find itself ahead of the competition by enhancing the customer experience several times over.
Are you looking for a trusted SAP testing company? Qualitest can help. You can reduce your testing spend between 15% to 25%. Reducing program timelines by three months is also a possibility. Sounds good? Speak to an expert now!