JAIIB Paper 2 Module C Quiz 6

Correct answer: Option 1. APIs allow systems to interact through documented rules. Secure API design requires authentication, authorisation, monitoring and appropriate consent and data controls. Topic area: Technology Trends — Application Programming Interface (API).

Correct answer: Option 4. Open banking depends on controlled access, security, consent and applicable regulation. It does not mean unrestricted public access to bank data. Topic area: Technology Trends — Open banking.

Correct answer: Option 3. Account Aggregators facilitate consent-based financial data sharing under the Indian framework. They do not themselves guarantee credit approval or eliminate the need for lawful processing. Topic area: Technology Trends — Account Aggregator framework.

Correct answer: Option 3. FinTech uses technology to improve or reshape financial services, including payments, lending, onboarding, advice and compliance. Topic area: Technology Trends — FinTech.

Correct answer: Option 1. RegTech can automate compliance monitoring, reporting, identity checks and regulatory workflows. It still needs governance and validation. Topic area: Technology Trends — RegTech.

Correct answer: Option 1. SupTech applies technology and data analytics to supervision, monitoring and regulatory oversight, while RegTech is generally used by regulated entities for compliance. Topic area: Technology Trends — SupTech.

Correct answer: Option 4. AI can improve pattern detection and service efficiency, but model risk, explainability, privacy, bias and human oversight remain important. Topic area: Technology Trends — Artificial intelligence in banking.

Correct answer: Option 1. Machine-learning models identify statistical patterns from data. They need suitable data, testing, monitoring and controls for drift and unintended outcomes. Topic area: Technology Trends — Machine learning.

Correct answer: Option 2. RPA automates repetitive rule-based workflows such as data entry and reconciliation support. Exceptions and control checks still require careful design. Topic area: Technology Trends — Robotic Process Automation (RPA).

Correct answer: Option 2. Cloud services can provide scalable computing and storage. Banks must assess security, resilience, data location, outsourcing, concentration and exit risks. Topic area: Technology Trends — Cloud computing.

Correct answer: Option 3. Biometrics may include fingerprints or facial features. They require privacy protections, liveness/spoofing controls and fallback mechanisms because no biometric system is infallible. Topic area: Technology Trends — Biometric authentication.

Correct answer: Option 2. Chatbots can provide routine information and route queries. Banks should protect data, clearly handle limitations and provide escalation to human support where needed. Topic area: Technology Trends — Chatbot in banking.

Correct answer: Option 3. Fraudsters may impersonate banks or staff on social platforms. Customers should use official verified channels and never share credentials or sensitive account information in messages. Topic area: Technology Trends — Social media banking risk.

Correct answer: Option 2. Hashtag banking is a social-media engagement concept, not a payment system or regulatory settlement mechanism. Banks must still observe privacy and communication controls. Topic area: Technology Trends — Hashtag banking.

Correct answer: Option 2. Distributed ledgers can provide shared records and traceability, but governance, privacy, scalability, legal status and input accuracy remain important considerations. Topic area: Technology Trends — Blockchain / distributed ledger.

Correct answer: Option 2. A sandbox helps isolate testing from production. Testing should use appropriate test data and follow controlled promotion and approval procedures. Topic area: Technology Trends — Application sandbox.

Correct answer: Option 1. Digital onboarding can improve convenience but must meet applicable KYC, consent, privacy, security and record-keeping requirements. Topic area: Technology Trends — Digital onboarding.

Correct answer: Option 4. Personalisation can improve relevance, but banks must use data lawfully, protect confidentiality and monitor for unfair or inappropriate outcomes. Topic area: Technology Trends — Personalisation in banking analytics.

Correct answer: Option 2. Concentration can amplify disruption if a provider fails. Banks should assess dependencies, resilience, substitutability, contractual protections and exit plans. Topic area: Technology Trends — Technology vendor concentration risk.

Correct answer: Option 4. Digital transformation needs accountable ownership, risk assessment, testing, security, change management and monitoring to ensure that innovation remains controlled. Topic area: Technology Trends — Digital transformation governance.