CRB CRB Digital Banking & Technology 2 — Questions and Answers
Question 1: What is the main benefit of real-time payment systems like RTP (Real-Time Payments) for retail banking customers?
- Payments are held for 3 business days for review
- Funds are available to recipients immediately, 24/7/365 (Correct answer)
- Transfers are only processed during business hours
- Payments require manual banker approval before settlement
Correct 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.
Question 2: Which of the following best describes 'open banking'?
- Banks operating without regular business hours
- A framework allowing third parties to access bank data via APIs with customer consent (Correct answer)
- Banking services offered only to government agencies
- Removing all security restrictions on banking accounts
Correct 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.
Question 3: A customer wants to set up automatic bill payments. Which digital banking feature should a retail banker recommend?
- Wire transfer service
- Automated Clearing House (ACH) recurring payment setup (Correct answer)
- Cashier's check ordering
- Safe deposit box rental
Correct 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.
Question 4: What does 'tokenization' do in digital payment security?
- Converts customer data into a physical token given to the banker
- Replaces sensitive payment data with a non-sensitive substitute to reduce fraud risk (Correct answer)
- Generates random passwords for online banking
- Creates physical security tokens for branch access
Correct 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.
Question 5: Which federal agency oversees cybersecurity guidance for US financial institutions?
- Federal Trade Commission (FTC)
- Federal Financial Institutions Examination Council (FFIEC) (Correct answer)
- Securities and Exchange Commission (SEC)
- Department of Labor (DOL)
Correct answer: Federal Financial Institutions Examination Council (FFIEC)
The FFIEC issues cybersecurity guidelines and examination procedures for federally regulated banks and financial institutions.
Question 6: What is a 'digital wallet' in the context of retail banking?
- A physical wallet with an embedded chip provided by the bank
- An electronic device or application that stores payment credentials for digital transactions (Correct answer)
- A bank-issued prepaid debit card for online shopping only
- A secure vault for storing paper currency at the bank
Correct 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.
CRB CRB Digital Banking & Technology 2
What is the main benefit of real-time payment systems like RTP (Real-Time Payments) for retail banking customers?