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Why Banks Are Setting Up Their Own Device Labs for App Testing

An audit in 2022 found that 99% of banking apps had severe security flaws, and 61% leaked personal data. Therefore, we’re witnessing a significant rise in on-prem device labs for banks to ensure better security, considering the sensitive nature of the information they hold. In this blog, we’ll learn more about why banks set up device labs for app testing.

What are On-Prem Device Labs?

On-Prem device labs, also called on-premise device labs, refer to highly secure in-house environments equipped with real mobile devices used by enterprises and banks to test their apps. 

In contrast to public cloud testing solutions, such device labs deploy within an organization’s private or physical Network to ensure 100% control over device access, infrastructure, data privacy, etc. What’s more? Their QA teams can run tests across various devices on real-world conditions without having to risk compliance regularities or data exposure.

Why Are On-Prem Device Labs for Banks Emerging?

On the surface, it looks like the rise of on-prem devices is a result of an obvious response to various security concerns. However, it’s one of the most strategic shifts driven by the rising need for highly reliable digital experiences, a surge in mobile usage, and extreme regulatory pressure.

Financial apps have turned out to be the new primary channel as far as customer engagement is concerned, which is why banks are responsible for ensuring data security, a consistent user experience, and flawless functionality across a highly fragmented device landscape.

Regulations such as data localization laws, GDPR, and PCI DSS simultaneously demand stringent control over data processing locations and how the data is processed. On-prem devices provide the necessary blend of flexibility, compliance, readiness, and control, which is the reason why they are becoming the preferred option for different financial institutions across the globe.

Benefits of On-Prem and Real Device Testing Banking

Implementing on-premise testing labs goes beyond just making a technical upgrade. It acts as one of the most strategic enablers to accelerate a bank’s digital transformation journey while providing a boost to compliance confidence. Since customers are the primary touchpoints, it’s critical to perform secure tests across real devices.

 

On-premise labs facilitate testing silos breakdown, automation of workflows, and the consistent delivery of optimal digital experiences while maintaining strict data security and privacy standards. Let’s check out the benefits. 

 

  • Zero-Maintenance Scalable Infrastructure

Modern on-premises solutions fluidly scale as the testing needs of a bank evolve. Whether it’s growing testing, complexity, expansion of the application, user base, or the emergence of new device variants, the lab’s infrastructure can automatically adjust without a high downtime or hefty IT intervention. Such a plug-and-play scalability reduces operational overheads so that the banks can stop worrying about infrastructure maintenance and focus on innovation. 

 

  • Built-In Security and Compliance Testing

On-prem device labs for banks help them perform app behavior monitoring focused on privacy, secure network simulations, biometric authentication tests, and other crucial compliance validations. It allows banks enforce compliance and security requirements like PCI DSS, GDPR, and other regulatory mandates within a controlled environment, thereby adhering to different industry and legal standards. Such an embedded capability for compliance mitigates risks and protects banks from costly penalties or data breaches. 

 

  • Global Device Coverage

While banks can use on-prem device labs for core device testing for security reasons, most of them also opt for hybrid cloud integrations to get access to extended device fleet. The capital expense of buying and maintaining all the latest models and their geographic variants would be skyrocketing. Such a hybrid approach approach optimizes resource allocation and costs while allowing comprehensiveness in test coverage across various types of devices, screen sizes, operating systems, etc. to reflect real world conditions.

 

  • Accelerated Release Cycles

Banks are already implementing robust automation, but when they leverage real device testing alongside of it, they can parally execute tests 24/7 across various devices at the same time. As a result, it dramatically reduces bottlenecks that usually arise by manual quality assurance, which further enables accelerated defect identification and resolution. All in all, it leads to faster release schedules, shorter testing phases, and high agility that enables them to swiftly respond to regulatory updates or market demands without compromising their quality.

Key Considerations for In-House Device Lab Banking

Building an on-prem device lab and scaling it calls for careful planning to make sure that it adheres to present day demands and stays open to adapting to future requirements. Banks should also take the following factors into account: 

Initial Infrastructure and Hardware Investment

Starting a device setup often begins with a vast mobile device inventory representing an organization’s customer demographics. It comprises the latest tablets and smartphones across the Android and iOS platforms. 

 

Banks also need a hefty amount for investing in the security of their physical infrastructure, including dedicated network, hardware, enclosures, and device racks to ensure security, performance, and reliability. As such, a setup demands upfront costs as it builds a solid foundation for repeatable and dependable test outcomes vital for high-stakes BFSI applications. 

 

Integrating With Current DevOps Pipelines

Fully leveraging the benefits of on-prem device labs is synonymous with seamlessly integrating with the bank’s existing workflows and DevOps tools. The bank should be able to connect with CI/CD platforms such as Azure DevOps, GitHub Actions, or Jenkins to enable automated test execution. 

Such an integration allows for accelerated feedback cycles, reduces the need for manual intervention, and facilitates the consistent enforcement of quality builds throughout the SDLC. 

Device Compatibility

A practical on-prem device lab must reflect the actual devices used by your banking customers. This means maintaining a mix of devices across multiple screen sizes, operating system versions, hardware capabilities, and manufacturers. 

 

Regularly refreshing this inventory based on market trends and customer analytics is crucial to accurately simulate user conditions and detect platform-specific issues before they reach production, thus safeguarding user experience and brand reputation.

Scalability For Future Needs

The mobile landscape is continually evolving, with new devices, OS updates, and technologies emerging frequently. Designing your on-prem lab with modularity and scalability in mind ensures you can quickly add new devices or expand server capacity as testing demands grow. 

 

This forward-looking approach not only future-proofs your investment but also allows your testing infrastructure to evolve alongside your digital offerings, ensuring ongoing quality assurance regardless of market changes or product complexity.

Pcloudy’s Lab In a Box On-Prem Device Labs for Banks

Most banks operate under stringent regulatory frameworks, which is why they can’t completely rely on third-party clouds when it comes to secure app testing BFSI. That’s where Pcloudy’s lab-in-a-box enters the picture, offering a highly secure and on-premise testing solution to transform any bank’s existing device inventory into an available and centralized testing lab.

Designed for the BFSI niche, this lab offers enterprise-grade security, complete data control, and accelerated deployment without the institutions having to compromise on test coverage or speed. Some of its features include:

  • No Data Leakage

Since testing entirely occurs on your premises with the help of your own devices, it doesn’t send any data to the cloud which ensures complete compliance with data privacy and residency laws such as GDPR and PCI DSS.

 

  • Plug and Play Setup Within 30 Minutes

It doesn’t require any overhead or complex installations. All testers have to do is connect the devices, plug the hub in, and they’ll have their own private lab of devices, fully operational in about 30 minutes.

 

  • Remote In-House Device Access

Pcloudy offers developers and QA teams are highly secure. Browser-based physical device access and without having to move them from your very own secure environment.

 

  • Complete Utilization of Device

The lab allows repurposing underutilized or scattered test devices into a remotely accessible and unified testing environment, maximizing hardware investment ROI.

 

  • Enterprise Grade Access Controls

The platform enforces role-based permissions to restrict device access and its timing. It also logs all sessions to fully track compliance with its audit trails. 

 

  • Flexibility for Hybrid Testing

It allows the extension of on-demand test coverage by providing access to pcloudy’s private or public cloud services. In addition to your internal devices, you can manage them all from one unified platform. 

 

  • Full Spectrum Testing Capabilities

Pcloudy enables conducting accessibility, performance, functional, and visual regression tests on real devices. It also features AI-powered agents to further automate and optimize the entire testing life cycle.

 

Pcloudy’s Lab in a Box also holds the trust of leading financial enterprises, as it has proven to reduce device-related effects by a staggering 40%, maintain 100% compliance, and accelerate software testing life cycles by 65% without causing an iota of threat to sensitive data.

How Can Banks Make The Most Out of an On-Prem Device Lab

Banks require secure, reliable, and compliant testing environments to deliver flawless digital experiences. Pcloudy’s Lab In a Box provides an ideal solution when set up with these best practices:

 

  • Secure Setup & Access Control: House devices in locked, monitored spaces with strict role-based permissions. Enable detailed audit logs of all device and test activity to meet rigorous banking compliance standards.

     

  • Seamless DevOps Integration: Connect the lab with your existing CI/CD tools, such as Jenkins, Azure DevOps, or GitHub Actions, to automate test execution on real devices during every code build, accelerating release cycles and improving quality.

     

  • Maintain a Relevant Device Inventory: Continuously update your device pool with popular, legacy, and new models that reflect your customers’ real-world usage. Supplement your lab with Pcloudy’s cloud devices to extend device variety without added capital expenditure.

     

  • Advanced Performance Monitoring: Leverage Pcloudy’s AI-driven analytics to track app responsiveness, memory usage, and performance anomalies. This will allow your team to resolve issues proactively before they impact users.

     

  • Realistic Network Simulation: Test your banking app’s behavior under different network conditions, such as VPNs, bandwidth limitations, or latency spikes, to ensure robust performance in real-world scenarios.

     

  • Compliance-First Testing Workflows: Keep all test data on-premise with encrypted connections and zero data retention, supporting stringent regulatory requirements like GDPR, PCI-DSS, and biometric authentication validations.

     

  • Scalable and Low-Maintenance Infrastructure: Benefit from a plug-and-play setup that deploys quickly, scale your lab modularly as your device needs grow, and minimize maintenance overhead through automation.

     

By following these best practices, banks can unlock the full potential of Pcloudy’s Lab In a Box to build a secure, scalable, and efficient device testing environment that accelerates innovation without compromising compliance or user experience.

Conclusion

Digital banking has emerged as a prominent customer engagement frontline, which makes flawless BFSI performance mission-critical. On-prem device Labs help banks overcome obstacles by providing them with unmatched speed, compliance, and control.

 

Financial institutions can modernize the entire testing infrastructure without sacrificing regulatory alignment or data sovereignty with Pcloudy’s lab-in-a-box. If you’re looking forward to complete confidence, fewer defects, and faster releases, sign up for a 30-day free trial now.

FAQs

 

Why do banks prefer on-prem labs over cloud-only alternatives?

Banks handle sensitive financial data and are subject to strict compliance standards like PCI DSS and GDPR. On-prem labs ensure complete data sovereignty, reduce security risks, and provide more consistent device availability—all critical for high-stakes financial app testing.

 

Are on-prem device labs expensive to maintain?

While the initial hardware investment can be significant, solutions like Pcloudy’s Lab in a Box minimize ongoing maintenance with plug-and-play deployment, remote access capabilities, and hybrid scalability, making them cost-effective long-term solutions.

 

Can an on-prem lab integrate with my CI/CD pipeline?

Yes. Most modern on-prem solutions, including Pcloudy, support integration with DevOps tools like Jenkins, Azure DevOps, and GitHub Actions, enabling automated testing with every code commit or build.

Veethee Dixit

Veethee is a seasoned content strategist and technical writer with deep expertise in SaaS and AI-driven testing platforms. She crafts SEO-optimized content that simplifies complex testing concepts into clear, actionable insights. Her work has been featured in leading software testing newsletters and cited by top technology publications.