Digital Banking and Fintech Flashcards
7 cards from real Banking Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Digital Banking and Fintech flashcards as text
Which regulation requires US banks to share customer financial data with third-party fintech apps when customers request it?
Answer: CFPB Section 1033
CFPB Section 1033 grants consumers the right to access and share their financial data with authorized third parties.
What is a 'neobank' in the context of modern financial services?
Answer: A fully digital bank with no physical branch locations
Neobanks are purely digital financial institutions that operate entirely online without traditional brick-and-mortar branches.
What does 'screen scraping' refer to in the context of fintech data aggregation?
Answer: Using customer credentials to log into bank portals and extract data
Screen scraping involves fintechs using a customer's login credentials to access their bank account and extract financial data, a practice increasingly replaced by APIs.
Which technology underlies most cryptocurrency transactions and enables decentralized record-keeping?
Answer: Distributed ledger / blockchain
Blockchain is a distributed ledger technology that records transactions across a network of computers without a central authority.
What is 'RegTech' in the banking industry?
Answer: Software solutions that help financial institutions comply with regulations efficiently
RegTech refers to technology solutions designed to help financial institutions manage regulatory compliance processes more efficiently and cost-effectively.
What is the primary function of a payment gateway in e-commerce transactions?
Answer: Transmitting payment data securely between the merchant, acquirer, and card network
A payment gateway securely transmits encrypted payment information between the merchant, acquiring bank, and card payment network to authorize transactions.
What does 'interchange fee' refer to in debit and credit card transactions?
Answer: Fee the merchant's bank pays to the cardholder's bank for processing a transaction
Interchange fees are paid by the acquiring (merchant's) bank to the issuing (cardholder's) bank and are set by card networks like Visa and Mastercard.