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Digital Banking Flashcards

7 cards from real Banking practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Digital Banking flashcards as text

  1. Which regulation primarily governs consumer data privacy for digital banking customers in the United States?

    Answer: GLBA

    The Gramm-Leach-Bliley Act (GLBA) requires U.S. financial institutions to explain how they share and protect customers' private information.

  2. A customer tries to log into their mobile banking app but receives a one-time passcode via SMS. This security method is called:

    Answer: Two-factor authentication (2FA)

    Two-factor authentication combines something you know (password) with something you have (SMS code), adding a second layer of security.

  3. What is the primary purpose of a bank's API (Application Programming Interface) in open banking?

    Answer: To allow third-party apps to securely access bank data with customer consent

    Open banking APIs enable authorized third-party developers to build applications and services that access bank account data with the customer's permission.

  4. Which of the following best describes a 'digital wallet'?

    Answer: A software application that stores payment credentials for electronic transactions

    A digital wallet is a software-based system that securely stores payment information, allowing users to make electronic transactions via smartphones or computers.

  5. What does 'KYC' stand for in the context of digital banking onboarding?

    Answer: Know Your Customer

    Know Your Customer (KYC) is a regulatory process requiring banks to verify the identity of clients to prevent fraud, money laundering, and terrorist financing.

  6. A neobank differs from a traditional bank primarily because it:

    Answer: Operates entirely online with no physical branch network

    Neobanks are digital-only financial institutions with no physical branches, delivering all services through mobile apps and websites.

  7. Which technology allows customers to make contactless payments by tapping their phone at a point-of-sale terminal?

    Answer: Near Field Communication (NFC)

    NFC (Near Field Communication) enables secure, short-range wireless communication between a mobile device and payment terminal for contactless transactions.