Banking Digital Banking 5

Question 1

A bank's chatbot uses artificial intelligence to answer customer questions about balances and transactions. This technology is best described as:

Accepted Answer

Conversational AI / virtual assistant

Answer

Conversational AI virtual assistants use natural language processing to understand and respond to customer inquiries in real time through text or voice interfaces.

Question 2

Which of the following is a common method banks use to verify a new customer's identity during digital onboarding?

Accepted Answer

Document scanning with AI-powered liveness detection

Answer

Modern digital KYC onboarding uses AI to scan government-issued IDs and liveness detection to confirm the person is physically present, not using a photo.

Question 3

What is 'BaaS' (Banking as a Service) in the fintech ecosystem?

Accepted Answer

A model where licensed banks provide their banking infrastructure to non-bank companies via APIs

Answer

Banking as a Service (BaaS) allows fintech companies and other businesses to offer financial products by connecting to a licensed bank's infrastructure through APIs.

Question 4

A customer receives an alert that their debit card was used at a gas station skimmer. The criminal copied card data using a device physically attached to the card reader. This attack is called:

Accepted Answer

Card skimming

Answer

Card skimming involves attaching a device to ATMs or point-of-sale terminals that reads and copies magnetic stripe data from cards inserted by unsuspecting victims.

Question 5

Which U.S. agency has authority to supervise and enforce consumer financial protection laws against banks and large fintech companies?

Accepted Answer

The Consumer Financial Protection Bureau (CFPB)

Answer

The CFPB was created by the Dodd-Frank Act to supervise financial companies and enforce consumer protection laws in areas such as mortgages, credit cards, and digital payments.

Banking Practice Test

Banking Practice Test

Banking Digital Banking 5