Digital transformation promises efficiency, innovation, and a competitive edge. But in reality, the odds of a successful transformation in banking remain surprisingly low. Only three in ten banks that embark on such a journey actually reach their objectives. Why is that?
According to Netherlands-based Dzmitry Lubneuski, CIO at a1qa and a tech expert with two decades of experience in quality assurance, the reasons are deeply rooted in both technical and organizational complexities.
“Many financial institutions are built on legacy systems that are difficult to replace or integrate,” Lubneuski explained.
“Then you have cybersecurity risks, time and budget constraints, and a growing shortage of tech talent. All of these factors compound the difficulty of moving forward efficiently.”
Add to that the weight of regulatory compliance and the challenge of implementing emerging technologies like AI, blockchain, or IoT, and the transformation process can feel more like a minefield than a roadmap to innovation.
As banks push to evolve, ensuring quality at every stage of development becomes not just helpful—but essential.
Changing expectations
In today’s financial landscape, customer expectations are evolving faster than ever. People expect to complete transactions securely and instantly, receive tailored product recommendations, and get real-time support—all through intuitive digital platforms.
“The new generation of banking clients doesn’t just want a mobile app; they want a seamless experience across channels, from smart ATMs to biometric logins,” Lubneuski said.
“That level of service is only possible through consistent technological innovation—and with that comes the need for robust QA.”
Major institutions are already moving in this direction.
Bank of America, for instance, has embedded an AI-powered virtual assistant into its digital offerings, helping over 42 million customers manage their accounts, pay bills, and get support.
Meanwhile, Revolut has upended the traditional model by offering fully digital financial services, eliminating the need for physical branches altogether. These examples highlight just how critical technology-driven innovation is in meeting the evolving demands of today’s banking customers.
Upside of digital transformation
The challenges of transformation are evident, but so too are the potential rewards. For banks, the stakes are high: embracing new technology can bring a wide range of advantages.
According to Lubneuski, the value of digital transformation lies not only in operational efficiencies but also in the ability to serve clients better, adapt to new market demands, and stay ahead of the competition.
“Digital transformation can drive significant business growth,” Lubneuski noted “For instance, banks offering 24/7 digital services are more likely to attract and retain customers, as people prefer the convenience of accessing financial services through an app instead of physically visiting a branch.”
“When done right, QA isn’t a bottleneck [but] an enabler.”
– Dzmitry Lubneuski
In addition to acquiring new clients, digital solutions also streamline workflows.
Automation of routine tasks allows employees to focus on more strategic activities, while the move to more adaptable systems provides the flexibility to introduce cutting-edge solutions such as virtual assistants, biometric security, and personalized financial offerings.
Enhanced risk management is another key benefit, with AI-driven analytics allowing banks to better predict and mitigate risks like fraud. Additionally, modern tech enables stronger security measures, including biometric logins and encrypted transactions.
“Implementing these technologies isn’t just about improving efficiency or cutting costs,” Lubneuski added. “It’s about rethinking how banks interact with their clients and how they can better serve their needs in an increasingly digital-first world.”
QA safety net
What role does quality assurance play in all of this? As Lubneuski put it: “QA is the safety net. It’s what helps ensure that every new feature, every update, every integration performs as intended—before it reaches the customer.”
With advanced systems and technologies powering critical financial infrastructure, the margin for error is razor-thin.
One overlooked bug or untested integration can snowball into data breaches, service outages, or regulatory violations. QA helps to mitigate those risks by embedding testing and quality checks throughout the development lifecycle.
“When done right, QA isn’t a bottleneck, it’s an enabler,” Lubneuski emphasised. “It accelerates development by identifying issues early, reducing rework, and ensuring that software can scale and adapt as customer needs evolve.”
But, as with any journey, there are significant bumps along the road. Digital transformations in banking are not always smooth sailing, and several critical challenges stand in the way.
Obstacles for banks
Banks face several obstacles when adopting digital technologies. One major issue is security. With greater digital adoption, banks become more vulnerable to fraudulent attacks aimed at stealing sensitive client information.
As cybersecurity concerns grow, banks must also comply with stringent regulations like PCI DSS, ISO/TC 68, and others, which add another layer of complexity to digital initiatives.
“Security is a constant challenge,” Lubneuski stated in a recent Forbes analysis. “As banking becomes more digital, the risks increase—not just from cyber criminals, but also from the need to stay compliant with evolving regulations. This is a serious issue that can’t be overlooked.”
Operational risks also remain high, especially as outdated IT infrastructure struggles to support the adoption of newer technologies.
Customer expectations are another significant pressure point, users demand high-quality service and seamless experiences, and they expect this across all digital platforms, from apps to ATMs.
Banks must pay careful attention to several key software aspects to ensure successful transformation. According to Lubneuski, maintaining the reliability and performance of banking software is paramount.
“Reliability is key in financial services. If a banking system is vulnerable, whether through weak authentication or hacking risks, it can have disastrous consequences. Companies need to ensure they’re conducting regular penetration testing and vulnerability assessments to catch these issues early.”
Operational challenges
As banking software evolves, financial institutions must consider other aspects of QA to ensure smooth, reliable operations. Performance is critical, especially during peak times when transactions surge.
“For banking software, you’re looking at real-time transactions, and any delay can cost money or customer trust,” Lubneuski explained. “Testing the system’s ability to handle large volumes and ensure rapid responsiveness is non-negotiable.”
Additionally, migration and integration of new technologies into existing systems require thorough testing.
“Migration testing is vital when moving data to the cloud or switching to new systems. Any loss of data or errors in software functionality can severely damage business operations,” Lubneuski noted.
“Similarly, integration testing ensures that all parts of the system, from payment gateways to core banking applications, work seamlessly together.”
“Digital transformation is a continuous process, and QA plays a central role in making sure that transformation happens.”
– Dzmitry Lubneuski
Compatibility is also a critical factor, as users expect consistent experiences across devices, browsers, and operating systems.
“Cross-platform testing ensures that users can access services regardless of whether they are using a desktop, mobile device, or ATM,” Lubneuski added. “This helps provide a truly unified experience.”
With tight deadlines and increasing pressure to innovate, many organizations are turning to automation in their QA processes.
“Automating quality control workflows can speed up testing, reduce human errors, and ensure that the software is thoroughly checked before release,” Lubneuski said.
“It’s a smart way to increase efficiency without compromising on quality.”
Embracing digital change can help streamline operations, attract new customers through personalised experiences, and ensure business continuity. While this process is complex, it doesn’t have to be overwhelming.
With a strong focus on quality assurance, banks can address the challenges of digital transformation head-on. QA not only improves software reliability but also boosts stakeholder confidence, ensuring that digital initiatives meet both technical and customer expectations.
In the fast-evolving world of banking, quality assurance is more than just a safeguard—it’s a cornerstone of success.
“Digital transformation isn’t a one-time project,” Lubneuski concluded. “It’s a continuous process, and QA plays a central role in making sure that transformation happens smoothly and sustainably.”
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