|By SmartBear Blog||
|April 6, 2016 01:00 PM EDT||
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.
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
Apr. 29, 2017 02:30 AM EDT Reads: 9,336
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
Apr. 29, 2017 01:45 AM EDT Reads: 1,272
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Apr. 29, 2017 01:45 AM EDT Reads: 1,548
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
Apr. 29, 2017 01:15 AM EDT Reads: 903
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
Apr. 29, 2017 12:00 AM EDT Reads: 1,043
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
Apr. 28, 2017 11:45 PM EDT Reads: 2,370
Cloud Expo, Inc. has announced today that Aruna Ravichandran, vice president of DevOps Product and Solutions Marketing at CA Technologies, has been named co-conference chair of DevOps at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Apr. 28, 2017 11:30 PM EDT Reads: 2,747
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Apr. 28, 2017 10:45 PM EDT Reads: 1,448
Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the USA and Europe, we work with a variety of customers from emerging startups to Fortune 1000 companies.
Apr. 28, 2017 10:30 PM EDT Reads: 2,497
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
Apr. 28, 2017 10:15 PM EDT Reads: 2,525
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
Apr. 28, 2017 09:45 PM EDT Reads: 2,181
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
Apr. 28, 2017 09:15 PM EDT Reads: 2,637
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, pane...
Apr. 28, 2017 08:45 PM EDT Reads: 2,433
@ThingsExpo has been named the Most Influential ‘Smart Cities - IIoT' Account and @BigDataExpo has been named fourteenth by Right Relevance (RR), which provides curated information and intelligence on approximately 50,000 topics. In addition, Right Relevance provides an Insights offering that combines the above Topics and Influencers information with real time conversations to provide actionable intelligence with visualizations to enable decision making. The Insights service is applicable to eve...
Apr. 28, 2017 07:45 PM EDT Reads: 2,950
SYS-CON Events announced today that Grape Up 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. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
Apr. 28, 2017 07:15 PM EDT Reads: 2,332
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Apr. 28, 2017 07:00 PM EDT Reads: 1,181
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
Apr. 28, 2017 06:45 PM EDT Reads: 1,061
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing be...
Apr. 28, 2017 05:15 PM EDT Reads: 881
[session] Dovetailing DevOps and the Cloud By @CAinc | @DevOpsSummit #Cloud #DevOps #DigitalTransformation
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory?
Apr. 28, 2017 05:00 PM EDT Reads: 353
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Apr. 28, 2017 04:15 PM EDT Reads: 1,419