Finastra Assessment Test Finastra Assessment Core Banking Solutions 4 — Questions and Answers
Question 1: In Finastra's core banking context, what is KYC and why is it critical during account onboarding?
- Know Your Counterparty — required for interbank lending
- Know Your Customer — verifies customer identity to prevent fraud and comply with regulations (Correct answer)
- Key Year Closing — an annual audit process
- Keep Your Credentials — a security protocol for staff access
Correct answer: Know Your Customer — verifies customer identity to prevent fraud and comply with regulations
KYC (Know Your Customer) is a regulatory process that verifies customer identity during onboarding to prevent money laundering, fraud, and terrorist financing.
Question 2: What is the significance of the Basel III framework for Finastra's core banking reporting capabilities?
- It defines customer segmentation rules for retail banking
- It sets capital adequacy, liquidity, and leverage requirements that banks must report on (Correct answer)
- It mandates the use of cloud infrastructure for banking data
- It governs cross-border wire transfer fees
Correct answer: It sets capital adequacy, liquidity, and leverage requirements that banks must report on
Basel III establishes international standards for bank capital adequacy and liquidity, requiring core banking systems to generate precise regulatory reports.
Question 3: Which security principle in Finastra's core banking ensures that no single employee can complete a sensitive transaction without a second person's approval?
- Role-based access control
- Four-eyes principle (dual control) (Correct answer)
- Single sign-on
- Data encryption at rest
Correct answer: Four-eyes principle (dual control)
The four-eyes principle (dual control) requires two authorized individuals to approve sensitive operations, reducing the risk of fraud or errors.
Question 4: In core banking, what does 'end-of-day (EOD) processing' typically include?
- Onboarding new customers and opening accounts
- Running batch jobs for interest accrual, statement generation, and account updates (Correct answer)
- Processing only card network settlements
- Uploading new product configurations
Correct answer: Running batch jobs for interest accrual, statement generation, and account updates
EOD processing runs batch jobs that calculate interest, generate statements, update balances, and perform reconciliation after the business day closes.
Question 5: How does Finastra's core banking handle 'dormant accounts' to comply with regulatory requirements?
- They are deleted after 6 months of inactivity
- They are flagged, reported to regulators, and may have restrictions applied after a defined inactivity period (Correct answer)
- They are automatically merged with active accounts
- They are transferred to a central government fund immediately
Correct answer: They are flagged, reported to regulators, and may have restrictions applied after a defined inactivity period
Dormant accounts are flagged after a defined inactivity period, subject to special handling and regulatory reporting, often with restricted transaction capabilities.
Question 6: What is the purpose of 'reconciliation' in Finastra's core banking operations?
- Offering dispute resolution between customers
- Ensuring internal records match external records such as nostro accounts and payment networks (Correct answer)
- Calculating credit scores for loan applicants
- Automating new account product recommendations
Correct answer: Ensuring internal records match external records such as nostro accounts and payment networks
Reconciliation verifies that internal banking records match external records (e.g., correspondent bank accounts, card networks), identifying and resolving discrepancies.
Question 7: Which Finastra feature allows banks to configure automated actions when an account balance falls below a defined threshold?
- Transaction monitoring alerts
- Event-driven rules engine / balance alerts (Correct answer)
- Liquidity coverage ratio module
- Credit risk scoring model
Correct answer: Event-driven rules engine / balance alerts
An event-driven rules engine lets banks define automated triggers—such as notifications or fund transfers—when specific conditions like low balances occur.
Finastra Assessment Test Finastra Assessment Core Banking Solutions 4
In Finastra's core banking context, what is KYC and why is it critical during account onboarding?