Welcome!

Agile Computing Authors: Liz McMillan, Pat Romanski, LeanTaaS Blog, Progress Blog, Derek Weeks

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.

@ThingsExpo Stories
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
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...
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning 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 busin...
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 ...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
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...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
DevOps at Cloud Expo – being held June 5-7, 2018, at the Javits Center in New York, NY – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. 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. Among the proven benefits,...
@DevOpsSummit at Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, is co-located with 22nd Cloud Expo | 1st DXWorld 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...
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...
SYS-CON Events announced today that T-Mobile exhibited 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 qua...
SYS-CON Events announced today that Cedexis 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. Cedexis is the leader in data-driven enterprise global traffic management. Whether optimizing traffic through datacenters, clouds, CDNs, or any combination, Cedexis solutions drive quality and cost-effectiveness. For more information, please visit https://www.cedexis.com.
SYS-CON Events announced today that Google Cloud has been named “Keynote Sponsor” of 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. Companies come to Google Cloud to transform their businesses. Google Cloud’s comprehensive portfolio – from infrastructure to apps to devices – helps enterprises innovate faster, scale smarter, stay secure, and do more with data than ever before.
SYS-CON Events announced today that Vivint to exhibit at SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California. As a leading smart home technology provider, Vivint offers home security, energy management, home automation, local cloud storage, and high-speed Internet solutions to more than one million customers throughout the United States and Canada. The end result is a smart home solution that sav...
SYS-CON Events announced today that Opsani 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. Opsani is the leading provider of deployment automation systems for running and scaling traditional enterprise applications on container infrastructure.
SYS-CON Events announced today that Nirmata 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. Nirmata provides a comprehensive platform, for deploying, operating, and optimizing containerized applications across clouds, powered by Kubernetes. Nirmata empowers enterprise DevOps teams by fully automating the complex operations and management of application containers and its underlying ...
SYS-CON Events announced today that Opsani to exhibit at SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California. Opsani is creating the next generation of automated continuous deployment tools designed specifically for containers. How is continuous deployment different from continuous integration and continuous delivery? CI/CD tools provide build and test. Continuous Deployment is the means by which...