Welcome!

@CloudExpo Authors: Mark Herring, Gopala Krishna Behara, Sridhar Chalasani, Tirumala Khandrika, John Katrick

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
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
"I focus on what we are calling CAST Highlight, which is our SaaS application portfolio analysis tool. It is an extremely lightweight tool that can integrate with pretty much any build process right now," explained Andrew Siegmund, Application Migration Specialist for CAST, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that's no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, explored how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He expla...
SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone inn...
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...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
DevOps promotes continuous improvement through a culture of collaboration. But in real terms, how do you: Integrate activities across diverse teams and services? Make objective decisions with system-wide visibility? Use feedback loops to enable learning and improvement? With technology insights and real-world examples, in his general session at @DevOpsSummit, at 21st Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, explored how leading organizations use data-driven DevOps to close th...
Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams. In his session at 22nd Cloud Expo | DXWorld Expo, Daniel Jones, CTO of EngineerBetter, will answer: How can we improve willpower and decrease technical debt? Is the present bias real? How can we turn it to our advantage? Can you increase a team’s effective IQ? How do DevOps & Product Teams increase empathy, and what impact does empath...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, discussed how given the magnitude of today's application ...
There is a huge demand for responsive, real-time mobile and web experiences, but current architectural patterns do not easily accommodate applications that respond to events in real time. Common solutions using message queues or HTTP long-polling quickly lead to resiliency, scalability and development velocity challenges. In his session at 21st Cloud Expo, Ryland Degnan, a Senior Software Engineer on the Netflix Edge Platform team, will discuss how by leveraging a reactive stream-based protocol,...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
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 f...
"Digital transformation - what we knew about it in the past has been redefined. Automation is going to play such a huge role in that because the culture, the technology, and the business operations are being shifted now," stated Brian Boeggeman, VP of Alliances & Partnerships at Ayehu, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
You know you need the cloud, but you're hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You're looking at private cloud solutions based on hyperconverged infrastructure, but you're concerned with the limits inherent in those technologies. What do you do?
"We started a Master of Science in business analytics - that's the hot topic. We serve the business community around San Francisco so we educate the working professionals and this is where they all want to be," explained Judy Lee, Associate Professor and Department Chair at Golden Gate University, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.