Digital Banking and Technology Flashcards
7 cards from real CBP 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 and Technology flashcards as text
Which authentication method uses behavioral characteristics such as typing rhythm and mouse movement patterns to verify a user's identity?
Answer: Behavioral biometrics
Behavioral biometrics analyzes patterns in how users interact with devices, such as typing speed, mouse movements, and touchscreen gestures, to continuously verify identity.
In digital banking, what does the term 'API economy' refer to?
Answer: The ecosystem of interconnected services enabled by open API sharing between financial institutions and fintechs
The API economy in banking refers to the interconnected ecosystem where banks, fintechs, and third parties share data and services through open APIs, enabling new products and partnerships.
A bank deploys a chatbot that escalates complex queries to human agents. What is this hybrid model called?
Answer: Human-in-the-loop AI
Human-in-the-loop AI combines automated AI responses for routine tasks with human agent intervention for complex or sensitive situations.
Which regulation requires US banks to allow customers to authorize third-party access to their financial data through secure APIs?
Answer: Dodd-Frank Act Section 1033
Dodd-Frank Section 1033 grants consumers the right to access their financial data and authorize third parties to retrieve it on their behalf.
What is 'card-not-present' (CNP) fraud in digital banking?
Answer: Unauthorized transactions made online or by phone without the physical card
CNP fraud occurs when stolen card credentials are used for online, phone, or mail-order transactions where the physical card is not required.
In the context of digital banking infrastructure, what does 'zero-trust architecture' assume by default?
Answer: No user or device should be trusted, even inside the corporate network
Zero-trust architecture operates on the principle of 'never trust, always verify,' requiring authentication and authorization for every user and device regardless of network location.
Which technology enables banks to process transactions at the network edge, reducing latency for real-time payments?
Answer: Edge computing
Edge computing processes data closer to the source (the user or transaction point) rather than in a centralized data center, significantly reducing latency for real-time banking transactions.