CFP Cheat Sheet 2026

The 30 highest-yield CFP facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What is the primary purpose of a payment orchestration layer in a merchant's technology stack? → To route transactions across multiple PSPs and acquirers for optimization
2. Which international standard provides a framework for information security management systems (ISMS) commonly used by fintech firms? → ISO 27001
3. Which technology underpins most modern robo-advisor platforms for portfolio management? → Modern Portfolio Theory combined with algorithmic rebalancing
4. Which cryptographic method allows one party to prove knowledge of a secret without revealing the secret itself, increasingly used in privacy-focused DeFi? → Zero-Knowledge Proof (ZKP)
5. Which risk is most uniquely associated with lending on DeFi platforms compared to traditional lending? → Smart contract risk where code bugs can result in loss of funds
6. What is the MOST significant operational risk that fintech lenders face when using third-party data providers for underwriting decisions? → Vendor dependency and data quality failures that can corrupt credit models
7. What does 'credit card tokenization' (network tokenization) do for transaction security? → Replaces the actual card number with a unique token that is useless if intercepted
8. Which regulatory requirement mandates that fintech companies verify the identity of their business customers, including beneficial ownership? → Customer Due Diligence (CDD) / Know Your Business (KYB)
9. A fintech uses psychometric testing as part of its SMB loan underwriting. What is the primary risk management justification for this approach? → It captures entrepreneurial risk attitudes not reflected in financial data
10. Which forecasting method assigns exponentially decreasing weights to older historical data points? → Exponential smoothing
11. Which U.S. regulation requires lenders to disclose the annual percentage rate (APR) and key loan terms to borrowers? → Truth in Lending Act (TILA) / Regulation Z
12. What role does feedback play in CFP professional development? → Identifying strengths and improvement areas to guide growth
13. Which type of data do alternative credit scoring models use that traditional FICO scores do not? → Rent payments, utility bills, and social media behavior
14. Which approach best describes 'privacy by design' in fintech product development? → Embedding data privacy controls into the system architecture from the start
15. What is cryptocurrency in Fintech? → A digital form of currency without physical backing
16. Why is decentralization important in blockchain for Fintech? → It prevents unauthorized access and centralization of power
17. A fintech operating as a money transmitter in the US must maintain what financial safeguard to protect customer funds? → Surety bond or permissible investments equal to outstanding liabilities
18. Under the Fair Credit Reporting Act (FCRA), if a fintech company takes an adverse action based on a credit report, what must it provide to the consumer? → An adverse action notice including the CRA name and consumer's right to a free report
19. A fintech operating in California must comply with the CCPA, which grants consumers the right to: → Opt out of the sale of their personal information
20. A sensitivity analysis table in Excel shows NPV values across different WACC and growth rate combinations. What type of analysis is this? → Data table sensitivity analysis
21. What differentiates quantitative from qualitative data in CFP? → Quantitative is numerical; qualitative is descriptive and categorical
22. Why is written communication important in CFP practice? → It creates permanent records and ensures clarity for future reference
23. What is budget variance analysis in CFP financial management? → Comparing actual spending against budgeted amounts to explain differences
24. What is 'RegTech' primarily designed to help financial institutions do? → Automate compliance and regulatory reporting processes
25. In insurance underwriting, what does 'moral hazard' specifically refer to in the context of fintech-enabled parametric policies? → The risk that the insured takes on more risk because they are protected
26. Which loss given default (LGD) factor is MOST unique to unsecured fintech consumer loans compared to traditional bank loans? → Near-zero recovery due to absence of collateral and low legal pursuit economics
27. A money services business (MSB) operating a mobile payment app must register with which US federal body? → Financial Crimes Enforcement Network (FinCEN)
28. A consumer's credit card number is replaced with a unique token for online transactions. Where is the actual card number stored? → In the payment gateway's token vault
29. Which underwriting approach best mitigates model risk when deploying an AI-based credit decision system? → Implementing a challenger model framework with ongoing monitoring
30. How should CFP professionals handle difficult conversations? → Prepare key points, remain calm, focus on facts, seek solutions