CRB Digital Banking & Technology Flashcards

What is the main benefit of real-time payment systems like RTP (Real-Time Payments) for retail banking customers?

Answer: Funds are available to recipients immediately, 24/7/365

Real-time payment networks settle transactions instantly at any time, improving cash flow and customer convenience.

Which of the following best describes 'open banking'?

Answer: A framework allowing third parties to access bank data via APIs with customer consent

Open banking uses APIs to let authorized third-party providers access customer financial data, enabling innovative services with consumer permission.

A customer wants to set up automatic bill payments. Which digital banking feature should a retail banker recommend?

Answer: Automated Clearing House (ACH) recurring payment setup

ACH recurring payments automate bill payments on a set schedule, reducing missed payments and manual effort for customers.

What does 'tokenization' do in digital payment security?

Answer: Replaces sensitive payment data with a non-sensitive substitute to reduce fraud risk

Tokenization substitutes actual card numbers or account data with unique tokens, so actual credentials are never exposed during transactions.

Which federal agency oversees cybersecurity guidance for US financial institutions?

Answer: Federal Financial Institutions Examination Council (FFIEC)

The FFIEC issues cybersecurity guidelines and examination procedures for federally regulated banks and financial institutions.

What is a 'digital wallet' in the context of retail banking?

Answer: An electronic device or application that stores payment credentials for digital transactions

A digital wallet stores payment information electronically, enabling contactless payments and online transactions through devices like smartphones.