Finastra Assessment Test Finastra Assessment Open Finance and APIs 5

Question 1

What is 'embedded finance' and how does it relate to Open Finance APIs?

Accepted Answer

The integration of financial services (payments, lending, insurance) directly into non-financial platforms via APIs

Answer

Embedded finance uses Open APIs to allow non-financial companies (e.g., e-commerce platforms) to offer banking, payments, or lending services natively within their own products.

Question 2

What distinguishes a 'webhook' from a traditional REST API call in financial integrations?

Accepted Answer

A webhook is server-initiated (push), sending data to a client URL when an event occurs, rather than the client polling for updates

Answer

Webhooks flip the communication model — instead of a client repeatedly polling, the server pushes a notification to the client's endpoint when a specified event (e.g., payment settled) occurs.

Question 3

What is 'Know Your Customer (KYC)' as it relates to Open Finance API integrations?

Accepted Answer

A regulatory identity verification process that fintechs must complete, often enabled via KYC APIs from identity providers

Answer

KYC APIs allow fintechs and banks to programmatically verify customer identities using documents and biometrics, meeting AML/BSA regulatory requirements digitally.

Question 4

In FusionFabric.cloud, what is the 'App Store' component designed to do?

Accepted Answer

Enable financial institutions to discover, evaluate, and deploy third-party microapps built on Finastra's open APIs

Answer

The FusionFabric.cloud App Store is a marketplace where banks can browse and deploy certified fintech microapps that integrate with their existing Finastra products via open APIs.

Question 5

What does 'PKCE' (Proof Key for Code Exchange) protect against in OAuth 2.0 flows?

Accepted Answer

Authorization code interception attacks, especially in mobile and single-page applications

Answer

PKCE (RFC 7636) prevents authorization code interception by requiring the client to prove it initiated the flow, critical for public clients like mobile apps that cannot store a client secret.

Finastra Assessment Test Practice Test

Finastra Assessment Test Practice Test

Finastra Assessment Test Finastra Assessment Open Finance and APIs 5