Banking Exam Digital Banking and Fintech 2

Question 1

Which regulation requires US banks to share customer financial data with third-party fintech apps when customers request it?

Accepted Answer

CFPB Section 1033

Answer

CFPB Section 1033 grants consumers the right to access and share their financial data with authorized third parties.

Question 2

What is a 'neobank' in the context of modern financial services?

Accepted Answer

A fully digital bank with no physical branch locations

Answer

Neobanks are purely digital financial institutions that operate entirely online without traditional brick-and-mortar branches.

Question 3

What does 'screen scraping' refer to in the context of fintech data aggregation?

Accepted Answer

Using customer credentials to log into bank portals and extract data

Answer

Screen scraping involves fintechs using a customer's login credentials to access their bank account and extract financial data, a practice increasingly replaced by APIs.

Question 4

Which technology underlies most cryptocurrency transactions and enables decentralized record-keeping?

Accepted Answer

Distributed ledger / blockchain

Answer

Blockchain is a distributed ledger technology that records transactions across a network of computers without a central authority.

Question 5

What is 'RegTech' in the banking industry?

Accepted Answer

Software solutions that help financial institutions comply with regulations efficiently

Answer

RegTech refers to technology solutions designed to help financial institutions manage regulatory compliance processes more efficiently and cost-effectively.

Banking Exam Practice Test

Banking Exam Practice Test

Banking Exam Digital Banking and Fintech 2