@CloudExpo Authors: Elizabeth White, Liz McMillan, Yeshim Deniz, Pat Romanski, Roger Strukhoff

Related Topics: @CloudExpo, Agile Computing, @DevOpsSummit

@CloudExpo: Blog Feed Post

Why Financial Service Companies Should Care About Application Performance By @SmartBear | @CloudExpo #Cloud

Managing applications and infrastructure in financial services is very different from other industries

Why Financial Service Companies Should Care About Application Performance
By Priyanka Tiwari

Historically, financial services have always been the early adopters and pioneers of advanced technology.

I am talking about financial services in an all-inclusive sense - which encompasses a broad range of institutions that manage money, including credit unions, banks, credit card companies, insurance companies, accountancy companies, consumer-finance companies, stock brokerages, investment funds, and more.

Managing applications and infrastructure in financial services is very different from other industries.
Like any other modern industry, online applications are pivotal to the success of financial service companies but the highly regulated nature of the business and concerns around security make providing and managing online applications even more challenging. For many banks, credit card companies, insurance companies and online payment processing companies, their websites, web apps, or mobile apps are the primary revenue generators.

Even a second of delay in processing a transaction or a minute of application downtime can cost millions in revenue, lost customers, and diluted brand equity.

Let's explore how proactive application performance monitoring can help financial services increase revenue and avoid operational nightmares.

The real cost of poor performance
When it comes to the importance of the speed of online applications, we often take the example of an e-commerce site, where it's easy to understand the cart abandonment and failed conversion.

Unavailable or slow applications have similar impact on financial services. When your banking app fails to complete certain action or your credit card fails to process a payment request, what do you do? Customers are highly invested with your financial service provider, so it's unlikely that they'll switch banks after one failed transaction. But they will pick up the phone or go on social media to share a bad experience.

Financial services companies understand the costs associated with an overflow of customer service calls. For example, it can cost banks anywhere from $5 to $15 per minute to maintain a call center. And, depending on the scope of an outage and the number of users that are impacted, social media backlash can have significant long-term and short-term costs to your business.

The takeaway here is that when it comes to financial services, the cost of poor application performance may not seem as straight forward as that in e-commerce or any other industry, but it is indeed equally severe when it comes to revenue impact.

Customer retention is the key.
This is true across all industries, but especially crucial for financial services.

It's well documented that increasing customer retention rates - even by a marginal of just 5%  - can have the potential to increase profits from anywhere from 25% to 95%. What's more, 82% of companies agree that retention is cheaper to execute than acquisition, according to an eConsultancy report. Losing a customer due to poor application performance or stability is easily preventable and should never happen. Due to the ‘sticky' nature of products in financial services, the cost (and effort) of switching is too high. Acquiring a new customer can cost businesses 6-10 times more than retaining an existing customer.

Mobile first and performance first
As the number of financial transactions on mobile devices continues to rise, the importance of mobile performance will only increase. In many developing countries, mobile is the primary channel of accessing the internet. When users access your banking or insurance app from different geographic locations, via different devices running on different wireless providers and different softwares, it becomes absolutely crucial to test and prepare your application to withstand all these diverse use cases.

Users are demanding and highly impatient when it comes to mobile transactions. What can lead to instant satisfaction can also lead to instant frustration - hence, a performance-first strategy needs to be the precursor of your mobile first strategy.

APIs and digital transformation
Fintech is already disrupting the financial services industry.

In simple terms, Fintech refers to new solutions that show an incremental or disruptive innovation, development of applications, processes, products or business models in the financial services industry. APIs are at the core of FinTech and digital transformation. And with great APIs comes great responsibilities.

APIs fuel financial applications with data and services, and accelerate innovation. But a slow of poorly performing API can break the app and impact your end users. As FinTech evolves and emerging companies base their applications and core business on a handful of essential public APIs, proactively monitoring for availability, performance and functional correctness becomes more important than ever.

How can proactive application monitoring help?
Proactively monitoring your websites, web and mobile applications, and underlying APIs help you avoid operational nightmares and enable you to find and fix application issues before they impact your end users. With a premium synthetic monitoring tool like AlertSite you can monitor not only the availability of your applications, but also the performance and correctness of complex user transactions such as filling forms and processing payments.

We don't need to explain the significance of ROI to the financial industry experts. At a macro level, profitability is the function of stable and high performing applications and customer loyalty and retention. With minimum initial investment of time and money, you can bulletproof your applications for all diverse use cases.  A sound application performance strategy and right tools can not only help avoid application performance issues but also increase revenue and customer satisfaction.

Read the original blog entry...

More Stories By SmartBear Blog

As the leader in software quality tools for the connected world, SmartBear supports more than two million software professionals and over 25,000 organizations in 90 countries that use its products to build and deliver the world’s greatest applications. With today’s applications deploying on mobile, Web, desktop, Internet of Things (IoT) or even embedded computing platforms, the connected nature of these applications through public and private APIs presents a unique set of challenges for developers, testers and operations teams. SmartBear's software quality tools assist with code review, functional and load testing, API readiness as well as performance monitoring of these modern applications.

@CloudExpo Stories
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Daniel Jones is CTO of EngineerBetter, helping enterprises deliver value faster. Previously he was an IT consultant, indie video games developer, head of web development in the finance sector, and an award-winning martial artist. Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams.
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Evan Kirstel is an internationally recognized thought leader and social media influencer in IoT (#1 in 2017), Cloud, Data Security (2016), Health Tech (#9 in 2017), Digital Health (#6 in 2016), B2B Marketing (#5 in 2015), AI, Smart Home, Digital (2017), IIoT (#1 in 2017) and Telecom/Wireless/5G. His connections are a "Who's Who" in these technologies, He is in the top 10 most mentioned/re-tweeted by CMOs and CIOs (2016) and have been recently named 5th most influential B2B marketeer in the US. H...
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
@DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises - and delivering real results.
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
DXWorldEXPO LLC announced today that Dez Blanchfield joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Dez is a strategic leader in business and digital transformation with 25 years of experience in the IT and telecommunications industries developing strategies and implementing business initiatives. He has a breadth of expertise spanning technologies such as cloud computing, big data and analytics, cognitive computing, m...
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve fu...