Software Verification and Validation in Banking Applications

Abstract

Software verification and validation are important in banking applications because financial systems must process transactions, customer records, account balances, payments, loans, reports, and compliance operations with high accuracy and reliability. Banking applications face strict requirements related to security, data integrity, auditability, availability, regulatory compliance, and transaction consistency, where even small software errors can cause financial loss or operational disruption. Traditional testing alone may not be sufficient because banking systems require both verification of development artifacts and validation of actual business behavior against user and regulatory expectations. This article focuses on software verification and validation in banking applications by examining requirement review, design inspection, code verification, test case validation, transaction testing, security testing, data reconciliation, audit trail checking, and user acceptance testing. The study discusses how structured V&V practices can detect defects early, reduce compliance risk, improve transaction accuracy, and strengthen release confidence. The article concludes that effective verification and validation are essential for building secure, reliable, compliant, and trustworthy banking software systems.