Validata Message Testing (MSG)

1. Validata Message Testing (MSG) Reduce payments’ cost with effective message testing for SWIFT, ATM, SEPA and generic interfaces

2. Agenda 1 Business Challenges Validata Advanced Testing Suite 2 3 Validata Testing Approach Validata Testing Methodology 4 5 Validata Message Testing Overview 6 Benefits

3. Business Challenges • Unobjectionably we are walking into a new era of financial messaging globalization, financial messages grow in number and complexity in order to meet this scope, automation is even more obligatory to achieve greater efficiency and protect the institution against failed transactions. (Failed payments cost Europe’s banks €21 billion a year) • Costs of payments have always been an important issue of discussion of the boards of banks and financial organizations. The increased competition, new products entering the market, high customer expectations as well as the harmonization of the European payment market (SEPA) have increased the already enormous payment costs. • At the same time application environments are becoming more complex, the introduction of SOA is becoming more common place and the use of best-of-breed solutions, testing of the integration points between applications is becoming a key phase of any testing engagement. On the other hand, SWIFT operates a worldwide financial messaging network which exchanges messages between 6000+ banks and other financial institutions. • It is beyond question, that the banks are interested in lowering the payments’ costs and minimize the extensive use of Information technology. The systems and solutions adopted by a bank or financial organization should be running 24 /7 and STP. Testing costs seem to be underestimated despite the fact that all these changes and new developments have pointed it out as a critical issue.

4. Validata Advanced Testing Suite (ATS) • Validata Advanced Testing Suite (ATS) provides a full end-to-end automated testing capability that adapts easily to changes in the application under test, ensuring higher quality and reduced costs and effort. • Validata ATS is a truly integrated and business process management solution. • Validata ATS is the first model – driven testautomation tool for Functional, Technical and Continuous Regression Testing. • Validata focuses on the analytics (the context and the content) thus providing root cause analysis linking requirements and testing. Full reporting is on-demand from the Executive Dashboard Module. Project Success

5. Validata ATS Critical Differencies Efficient Testing Effective Testing • Reduced Testing time - Less time to develop, Shortened application life cycle and Faster time to market • Reduced QA Cost - Upfront cost of automated testing is easily recovered over the lifetime of the product. The cost of performing automated testing is much lower, many times faster and with fewer errors • Greater Coverage -The productivity gains delivered by automated testing enable more and complete testing. Greater coverage reduces the risk of malfunctioning or non-compliant software • Improved testing productivity - Test suites can be run earlier and more often Improve Process Better Use of resources • Consistent test procedures - Ensuring process repeatability, resource independence, eliminates manual errors • Replicating Testing - Across different platforms is easier using automation • Results Reporting - Automated testing produces convenient reporting and analysis with standardized measures allowing more accurate interpretations • Using Testing Effectively -Testing is a repetitive activity. Automation of testing processes allows machines to complete the tedious, repetitive work while resources are diverted to perform other tasks • Test team members can focus on quality

6. Validata Testing Methodology • Testing Techniques: • Model Driven • Data Driven • Key Word Driven

7. Product Overview: Test Types Validata MSG provides an innovative automated testing framework with best practices and proven methodologies for testing of SWIFT, ATM, SOA and generic interfaces. Validata MSG has been developed to reduce the effort and simplify the integration testing phase of your projects. End-to-end scenarios can be developed and tested in many levels, from ensuring file formatting, data content and behavior of sending/receiving application. Validata MSG will allow for scenarios to test transactions initiated in one system are entered correctly, that messages for onward delivery are formatted correctly and accurate, that the receiving system processes the information correctly, that messages are returned if necessary etc. Effectively testing the application’s ability to process messages correctly and not just checking that messages are transferred - taking integration testing to the next level. Message Testing (MSG) Validata ATS has the ability to perform Parallel Testing on multiple environments using the unique test engine adapter

8. SWIFT Message Testing Validata SWIFT message testing shorten the software parameterization, testing and maintenance lifecycle for modules that incorporate standards such as: MT103, MT942, MT518. Validata MSG for SWIFT enables Developers and Business Analysts to schedule, test and validate their existing SWIFT messages to verify compliance with SWIFT MT and MX standards. Validata MSG has the ability to communicate with SWIFT boxes (e.g. Alliance) as also with core banking system (e.g. T24) in order to: Ordering Customer Bank / FI Intermediaries Validata Message Testing • Collect information for each message (monitor) • Collect information for financial transactions • Online update messages • Trigger actions at back-end(delete/resubmit/repair msg) • Online reconcile messages Beneficiary Settlement Mechanism Beneficiary Bank/FI

9. SOA Message Testing Because of the inherent complexity and broad impact of a SOA implementation, a centralized approach to testing is the ideal organizational structure for overseeing alignment of your business and IT requirements. SOA message testing is complicated as it requires the testing of interfaces and services that might bring together diverse systems and platforms, in addition to performance and security related issues. Extensive testing of web services is essential to securing the enterprise from potential business risks and scalability problems. Validata adopts a comprehensive tool-based message-driven test approach for SOA testing. This facilitates testing application to application communication across multiple layers of technology stacks.

10. ATM Message Testing • The ATM remains the most frequent touch point between a bank and its customers. An ATM alone will require several hundred tests just to confirm operation of its basic functionality. ATMs use standard message formatting protocols such as: ISO 8583. Banks should consider all of the messaging streams using, all different combinations of card types and authorization systems, as well as interaction between all the applications and the operating system resident on a modern ATM. • In order to validate the ATM messages and ensure that the host system processes them correctly several testing is required. • Ensure continuous ATM message testing through Validata MSG : • Create messages for advanced ATM functions (such as multiple currencies, non-currencies, non-envelope deposits) • Perform testing with messages that contain specific field data • Rapidly replay existing QA and regression test scripts • Run all transactions with all of your test cards (e.g.. hot cards, chip cards, not-on-us cards)

11. Validata MSG Features Validata MSG Adapter stands between the SWIFT / SOA / ATM interfaces and the Banking applications providing: Bidirectional communication Parsing of Incoming messages Parsing of Outgoing messages Verifying the mapping of the fields between the Banking application and the SWIFT / SOA / ATM messages incoming and outgoing Integration with end-to-end business scenarios Verifying the Delivery statuses of the generated messages Embedded Messaging Format and Mapping rules’ Library

12. Validata MSG: Inward Process SWIFT Example S.W.I.F.T. 0.Inward message 2.Standard SWIFT box-backend communication Swift box (alliance) T24 1.Validata retrieve inward message (box) 3.Validata retrieve produced transaction (e.g.. FT -backend) • Retrieve produced transaction (e.g.. FT from backend) • Store messages (into validata) • Online message monitor • Validate T24 message format / mapping (swift addresses, etc) Validata T24 SW module Repair Monitor Validate Monitor Swift msg store Import Export Reconciliation

13. Validata MSG: Outward Process SWIFT Example S.W.I.F.T. 4. Outward message 2.Standard swift box-backend communication Swift box (alliance) T24 1.Validata retrieve outward message & source transaction (from backend) 3.Validata MSG ensures that it is in the box • Retrieve related transaction (e.g. FT from backend) • Update message disposition (fix – to backend) • Resend messages (to box) • Store messages (into Validata MSG) • Online message monitor • Validate T24 message format / mapping (swift addresses, etc) Validata T24 SW module Repair Monitor Validate Monitor Swift msg store Import Export Reconciliation

14. Validata MSG: Inward Process SOA Example 0.Inward message 2.Standard SOA box-backend communication T24 SOA box 3.Validata retrieve produced transaction (e.g. FT -backend) SOA Online banking IVRS SMS Email 1.Validata retrieve inward message (box) • Retrieve produced transactions (e.g. FT from backend) • Store messages (into validata) • Online message monitor • Validate T24 message format / mapping Validata T24 SOA module Repair Monitor validate Monitor SOA msg store Import Export Reconciliation

15. Validata MSG: Outward Process SOA Example 4. Outward message 2.Standard SOA box-backend communication T24 Risk management system SOA box Anti Money Laundering System Forex Trading System SOA 1.Validata retrieve outward message & source transaction (from backend) 3.Validata MSG ensures that it is in the box Wire Transfer System • Retrieve related transactions (e.g. FT from backend) • Update message disposition (fix – to backend) • Resend messages (to box) • Store messages (into Validata MSG) • Online message monitor • Validate T24 message format / mapping Validata T24 SOA module Repair Monitor Validate Monitor SOA msg store Import Export Reconciliation

16. Validata ATM: Inward Process ATM Example ATM 0.Inward message 2.Standard ATM communication T24 ATM box 3.Validata retrieves produced transaction 1.Validata retrieve inward message (box) • Retrieve produced transactions • Store messages (into validata) • Online message monitor • Validate T24 message format / mapping Validata T24 ATM module Repair Monitor validate Monitor ATM msg store Import Export Reconciliation

17. Validata MSG: Reconciliation Process Import messages Swift / SOA / ATM Box Expected results into back-end Mapping Rules – validation Validata Expected results Retrieve actual results Back End Reconciliation Reports

18. Validata MSG: Message Testing Process Import financial transaction that generates messages T24 Expected SWIFT /SOA/ATM Messages Calculating and mapping Rules Validata Expected SWIFT /SOA/ATM Messages T24 Retrieve actual results Format mapping corrections

19. Validata MSG: Online Monitor Message information Visual Status Inward / outward Actions resubmit del fix   resubmit del fix   resubmit del fix  resubmit del fix  resubmit del fix 

20. The Critical Differencies Improved testing efficiency and increased productivity Tool-driven approach Accelerates time to market Substantial reduction in human error Fast ROI with measurable results Reduction of testing effort by 30% or more Complete coverage reduces business risks Delivering cost effective testing Extensive reusability Reduced deployment costs through increased effectiveness and accuracy of distributed application rollouts across environments

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