Banking apps handle sensitive customer data daily, and their operations are governed by industry and government regulations. Even the smallest gap in compliance with these regulations can trigger penalties, lawsuits, or a loss of customer trust. Because regulations impact every function of a banking app, from data storage to interface accessibility, testing becomes a practical way to confirm that these rules are being followed.

1. How QA Can Help Ensure Regulatory
Compliance in BFSI Applications
Banking apps handle sensitive customer data daily, and their operations are
governed by industry and government regulations.
Even the smallest gap in compliance with these regulations can trigger
penalties, lawsuits, or a loss of customer trust.
Because regulations impact every function of a banking app, from data
storage to interface accessibility, testing becomes a practical way to confirm
that these rules are being followed.
A structured QA process helps in secure data handling, accessibility, and
performance, while also validating that software updates do not weaken
existing controls. This makes compliance an integral part of the ongoing
lifecycle, rather than a one-time exercise.

2. In this article, let us take a deeper look at how a strengthened QA process can
help you implement regulatory compliance.
Breaking Down Key Digital Banking
Regulations
1. Data Privacy and User Consent
Banks and fintech apps handle sensitive customer data, which is protected
under privacy laws worldwide, including GDPR, CCPA, and local regulations.
Key checks include:
●​ Consent management workflows — verify that banners, preference
settings, and opt-outs function correctly for different users and
scenarios.
●​ Data access and modification workflows — test that users can
update, delete, or export their personal data reliably.
●​ User permission workflows — ensure that access to sensitive
features or data is restricted according to user roles.
2. Reliability and Change Management
The Regulations and guidance, such as FFIEC, Basel Committee on Banking
Supervision (BCBS) principles, and other national digital banking standards,
emphasize the management of technology risks. These cover areas such as
information security, business continuity, and software development.

3. For digital banking apps, the guidance places emphasis on change
management, reliability, and resilience. Banks are expected to test updates
carefully, maintain strong controls against vulnerabilities, and ensure that their
systems continue to perform reliably under different operating conditions.
3. Digital Accessibility Regulations
Accessibility regulations, guided by standards such as the Web Content
Accessibility Guidelines (WCAG), ensure that digital banking services are
usable by people with disabilities. Across regions, laws such as the Americans
with Disabilities Act (ADA) and Section 508 in the United States, the European
Accessibility Act (EAA) and EN 301 549 in the European Union, and the Rights
of Persons with Disabilities (RPwD) Act in India, set out similar expectations.
For QA teams, this means verifying that apps and websites work with
assistive technologies, can be operated through a keyboard, maintain
adequate color contrast, and use clear labels and accessible navigation in
every release.
4. KYC and AML Compliance Requirements
KYC (Know Your Customer) and AML (Anti-Money Laundering) are key
compliance requirements that define how financial institutions verify
customer identities, assess risk, and detect suspicious transactions. These
frameworks are based on laws such as the Bank Secrecy Act (BSA), the
Prevention of Money Laundering Act (PMLA), and global FATF
recommendations. They ensure that every customer is properly identified,

4. high-risk accounts are flagged, and potentially fraudulent activities are
reported to the appropriate authorities.
How QA Addresses Each Regulation
Knowing the regulations is the first step. Proving that your digital platforms
consistently meet these requirements requires a deliberate Quality Assurance
(QA) strategy tailored to each rule.
1. Testing Privacy and Consent Workflows
Data protection regulations require banks to protect customer data and
respect user consent. A sound QA strategy addresses this by testing elements
such as:
●​ Consent banners and data deletion functionalities work on real
devices and networks across multiple locations.
●​ Users can set preferences and request deletion reliably in different
environments.
2. Testing Reliability, Performance, and Change
Management
The IT Examination guidelines emphasize the importance of reliable systems
and controlled software changes. QA contributes to this through regression
testing, which involves comparing builds to ensure new releases do not break
existing features.

5. To ensure the reliability and resilience of systems, performance testing that
tracks a comprehensive list of KPIs spanning networks, devices, and user
experience can help demonstrate that banking apps remain stable under
stress and continue to deliver consistent service levels to customers.
3. Adhering to Digital Accessibility Regulations
Modern accessibility testing goes beyond one-off audits. A reliable solution
can scan critical user journeys in both web and mobile apps for accessibility
defects while the app is being tested for functionality and performance. This
makes accessibility part of the regular QA cycle rather than a separate activity.
The results are compiled into a detailed report that highlights issues such as
missing labels and poor color contrast. With these insights, teams can
address problems quickly and ensure that every new release aligns with
WCAG 2.1 A and AA standards.
4. Testing KYC and AML Workflows for Compliance
Validation
KYC and AML compliance depend on multiple interconnected workflows that
verify user identity and monitor transactions. QA ensures these flows function
as intended by validating ID verification steps, confirming that onboarding
processes progress through the correct stages, and replicating high-risk
transactions to verify that AML alerts are triggered accurately. Continuous
testing helps identify broken logic, missing checks, or delayed alerts before
they reach production environments.

6. Conclusion
As digital banking services become increasingly complex, testing remains a
reliable method for verifying that regulatory requirements are met in practice.
HeadSpin is an FSQS-registered testing platform that enables banks and
financial institutions to integrate compliance checks into their QA process
through functional, performance, and accessibility testing on real devices.
Flexible deployment options, including on-premise air-gapped setups, make it
possible to test sensitive workflows without moving data outside your
infrastructure. With 130 performance KPIs available, HeadSpin helps teams
identify performance gaps early and maintain applications that are compliant,
available, and reliable for customers.
This article was originally published on:
https://www.headspin.io/blog/qa-regulatory-compliance-bfsi