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

PSD2 is the EU regulation that requires banks to provide third-party providers with secure access to customer account data and payment initiation services via APIs.

Question 2

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

Accepted Answer

RESTful APIs using HTTP methods

Answer

RESTful APIs are the industry standard for open banking due to their simplicity, stateless design, scalability, and broad compatibility with web and mobile applications.

Question 3

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

Accepted Answer

Account Information Service Provider

Answer

An AISP (Account Information Service Provider) is a third-party entity authorized under PSD2 to access and aggregate customer account information for services like personal finance management.

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

CFPB Section 1033 establishes consumers' rights to access their financial data and share it with authorized third parties, serving as the primary US open banking framework.

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

A PISP can initiate payment transactions directly from a user's bank account with their explicit consent, enabling direct bank-to-bank payments without card networks.

(CFP) Certified Fintech Practitioner Practice Test

(CFP) Certified Fintech Practitioner Practice Test

CFP Open Banking & API Integration