CFP Open Banking & API Integration

Question 1

Which regulatory framework mandates that banks open their APIs to third-party providers in the European Union?

Accepted Answer

PSD2 (Payment Services Directive 2)

Answer

GDPR (General Data Protection Regulation)

Answer

MiFID II (Markets in Financial Instruments Directive)

Answer

Basel III Capital Framework

Question 2

Which API architecture style is most widely adopted in open banking implementations?

Accepted Answer

RESTful APIs using HTTP methods

Answer

SOAP-based APIs using XML

Answer

GraphQL APIs with schema queries

Answer

XML-RPC remote procedure calls

Question 3

What does 'AISP' stand for in the context of open banking?

Accepted Answer

Account Information Service Provider

Answer

Automated Information Security Protocol

Answer

API Integration Service Platform

Answer

Authenticated Identity Service Provider

Question 4

Which US regulatory provision most closely parallels the EU's open banking mandate by establishing consumer financial data rights?

Accepted Answer

CFPB Section 1033 Personal Financial Data Rights Rule

Answer

Dodd-Frank Act Section 619

Answer

Gramm-Leach-Bliley Act Title V

Answer

Sarbanes-Oxley Act Section 404

Question 5

What is the primary role of a Payment Initiation Service Provider (PISP) in an open banking ecosystem?

Accepted Answer

Initiating payment transactions directly from a customer's bank account with their consent

Answer

Providing identity verification and KYC services to banks

Answer

Providing portfolio investment strategy recommendations

Answer

Monitoring and auditing bank API performance metrics

Question 6

Which OAuth 2.0 flow is considered most appropriate for securing open banking API authentication for mobile and web applications?

Accepted Answer

Authorization Code Flow with PKCE

Answer

Client Credentials Flow for server-to-server auth

Answer

Implicit Flow for browser-based clients

Answer

Resource Owner Password Credentials Flow

Question 7

What is the primary purpose of a 'consent framework' in open banking?

Accepted Answer

To ensure customers explicitly authorize third parties to access their financial data with defined scope and duration

Answer

To allow banks to share data between institutions without requiring customer approval

Answer

To enable automatic data aggregation across all linked financial accounts

Answer

To standardize API rate limiting and throttling policies across all providers