Banking Digital Banking 3 — Questions and Answers
Question 1: What is 'screen scraping' in the context of fintech and digital banking?
- A method to remove malware from banking apps
- Automatically extracting data from a bank's website by logging in as the user (Correct answer)
- Encrypting screen data during video calls with a bank advisor
- A technique to detect phishing websites
Correct answer: Automatically extracting data from a bank's website by logging in as the user
Screen scraping involves a third-party service using the customer's credentials to log into their bank account and collect data, which is considered risky compared to API-based data sharing.
Question 2: Which federal agency insures deposits at FDIC-member digital banks up to $250,000 per depositor?
- The Federal Reserve
- The FDIC (Correct answer)
- The OCC
- The CFPB
Correct answer: The FDIC
The Federal Deposit Insurance Corporation (FDIC) insures deposits at member institutions, including digital banks, up to $250,000 per depositor per ownership category.
Question 3: A bank uses machine learning to flag unusual transactions in real time. This system is most commonly used for:
- Calculating loan interest rates
- Fraud detection and prevention (Correct answer)
- Generating customer credit scores
- Automating payroll processing
Correct answer: Fraud detection and prevention
Machine learning fraud detection systems analyze transaction patterns and flag anomalies in real time, helping banks stop fraudulent activity before it causes harm.
Question 4: What is the function of a 'banking aggregator' app such as Mint or Personal Capital?
- It processes ACH payments between banks
- It connects to multiple bank accounts and presents a unified financial dashboard (Correct answer)
- It provides FDIC insurance across multiple banks
- It issues credit cards on behalf of partner banks
Correct answer: It connects to multiple bank accounts and presents a unified financial dashboard
Banking aggregators link to multiple financial institutions and consolidate a user's accounts, transactions, and balances into one interface for budgeting and analysis.
Question 5: Which type of cyberattack involves criminals sending fake emails disguised as legitimate bank communications to steal login credentials?
- SQL injection
- Phishing (Correct answer)
- Man-in-the-middle attack
- Distributed denial of service (DDoS)
Correct answer: Phishing
Phishing attacks use deceptive emails or messages that appear to come from trusted sources like banks, tricking users into revealing their login credentials.
Question 6: In digital banking, what does ACH stand for?
- Automated Clearing House (Correct answer)
- Advanced Cryptographic Hashing
- Account Control Hub
- Authorized Compliance Handling
Correct answer: Automated Clearing House
The Automated Clearing House (ACH) is the electronic network used in the U.S. for processing direct deposits, bill payments, and bank-to-bank transfers.
Question 7: What security feature uses a customer's fingerprint or facial recognition to authenticate their identity in a mobile banking app?
- Token-based authentication
- Biometric authentication (Correct answer)
- Challenge-response authentication
- Certificate-based authentication
Correct answer: Biometric authentication
Biometric authentication uses unique physical characteristics such as fingerprints, facial features, or voice patterns to verify a user's identity.
Banking Digital Banking 3
What is 'screen scraping' in the context of fintech and digital banking?