Banking API Quiz 4/19

What are the common authentication methods used in banking and finance APIs?

• API Key

• OAuth 2.0, OpenID Connect, Mutual TLS (mTLS)

• Digest Auth

• Basic Auth

Explain the process of banking transaction processing through APIs.

• Banking APIs are only used for marketing purposes

• APIs are not used in banking transaction processing

• Banking transactions through APIs involve physical paperwork

• The process of banking transaction processing through APIs includes sending requests to the bank's server via API endpoints, which are then executed to perform operations such as fund transfers, balance inquiries, and transaction history retrieval.

What are some of the integration challenges faced when implementing banking APIs?

• Lack of customer interest

• Limited API functionality

• Security concerns, data privacy regulations compliance, legacy system compatibility, scalability issues, and ensuring seamless user experience.

• Inadequate API documentation

How does OAuth 2.0 play a role in securing banking API transactions?

• OAuth 2.0 allows unlimited access to all banking API transactions.

• OAuth 2.0 enables secure authorization and access control for banking API transactions.

• OAuth 2.0 increases the risk of unauthorized access to banking API transactions.

• OAuth 2.0 is not relevant to securing banking API transactions.

Discuss the importance of data encryption in banking API integrations.

• Data encryption is not necessary in banking API integrations

• Data encryption slows down the API performance

• Data encryption increases the risk of data breaches

• Data encryption in banking API integrations is important to safeguard sensitive information and prevent unauthorized access.