JAIBP Information Technology in Financial Services Syllabus

Why is fibre optic cable preferred over copper for high-speed networks?

Fibre optic transmits data as light, offering very high bandwidth, long-distance transmission, low signal attenuation, and immunity to electromagnetic interference and eavesdropping compared with copper cabling.

What is a network protocol and what does TCP/IP provide?

A protocol is a set of rules governing data communication. TCP/IP is the core Internet protocol suite: TCP ensures reliable, ordered delivery of data, and IP handles addressing and routing of packets between hosts.

Differentiate between HTTP and HTTPS.

HTTP (HyperText Transfer Protocol) transfers web pages in plain text. HTTPS is HTTP secured with SSL/TLS encryption, protecting data in transit (used for online banking and e-commerce).

What is a database and a Database Management System (DBMS)?

A database is an organised, structured collection of related data. A DBMS is software that allows users to create, store, retrieve, update and manage that data while enforcing security and integrity (e.g. Oracle, MySQL, SQL Server).

Name the main database models and the key feature of the relational model.

Main models are hierarchical, network, relational and object-oriented. The relational model stores data in two-dimensional tables (relations) made of rows (records) and columns (fields), with relationships established through keys.

Define primary key and foreign key in a relational database.

A primary key uniquely identifies each record in a table and cannot be null. A foreign key is a field in one table that refers to the primary key of another table, establishing a link between the two tables.

What is data redundancy and how do databases reduce it?

Data redundancy is the unnecessary duplication of the same data in multiple places. Databases reduce it through normalisation and centralised storage, which improves consistency and saves storage space.

What is normalisation in a relational database?

Normalisation is the process of organising data into tables to eliminate redundancy and dependency anomalies, breaking large tables into smaller related ones to improve data integrity and consistency.

What are the four main categories of SQL commands?

DDL (Data Definition Language: CREATE, ALTER, DROP), DML (Data Manipulation Language: SELECT, INSERT, UPDATE, DELETE), DCL (Data Control Language: GRANT, REVOKE), and TCL (Transaction Control Language: COMMIT, ROLLBACK).

Write an SQL statement to retrieve all customers from a CUSTOMERS table whose city is 'Karachi'.

SELECT * FROM CUSTOMERS WHERE City = 'Karachi';

What do the SQL keywords WHERE, ORDER BY and GROUP BY do?

WHERE filters rows based on a condition; ORDER BY sorts the result set by one or more columns (ascending or descending); GROUP BY groups rows that share a value, usually with aggregate functions such as SUM or COUNT.

What is a data warehouse and how does it differ from an operational database?

A data warehouse is a large, central repository of integrated, historical data from multiple sources, optimised for analysis and reporting (OLAP). An operational database is optimised for day-to-day transaction processing (OLTP) and holds current data.

Define data mining and name two common data mining techniques.

Data mining is the process of discovering hidden patterns, correlations and trends in large datasets. Common techniques include classification, clustering, association rule mining (market basket analysis) and regression/prediction.

What is ETL in the context of data warehousing?

ETL stands for Extract, Transform, Load: data is extracted from source systems, transformed (cleaned, formatted, integrated) and loaded into the data warehouse for analysis.

What is a Core Banking Solution (CBS)?

A Core Banking Solution is a centralised software platform that processes a bank's daily banking transactions and posts updates in real time across all branches, enabling 'anywhere, anytime' banking through a single customer database.

What does 'CORE' stand for in Core Banking and what is its main benefit?

CORE stands for Centralised Online Real-time Exchange/Environment. Its main benefit is that a customer becomes a customer of the bank rather than of a single branch, allowing transactions from any branch or channel against a centralised account.

What is Electronic Funds Transfer (EFT)?

EFT is the electronic movement of money from one bank account to another without the use of paper instruments, carried out through computer-based systems and networks (e.g. ATM transfers, online transfers, direct deposits).

What is RTGS and what types of payments is it used for?

RTGS (Real Time Gross Settlement) is a system in which funds are transferred individually and settled continuously in real time on a gross (transaction-by-transaction) basis with finality. It is used for large-value, time-critical interbank payments. In Pakistan it is operated by SBP as PRISM.

Differentiate between RTGS and net settlement systems.

In RTGS each transaction is settled individually and immediately on a gross basis with no netting, suited to large-value payments. In net (deferred) settlement, transactions are accumulated and netted, with only the net positions settled at scheduled times, suited to high-volume, low-value payments.

What is a clearing house and what is its function in the payment system?

A clearing house is a central institution that collects, sorts and exchanges payment instruments (such as cheques) between banks and calculates the net amounts each bank owes or is owed, facilitating settlement. In Pakistan, NIFT performs cheque clearing.

What is the difference between clearing and settlement?

Clearing is the process of transmitting, reconciling and confirming payment instructions and calculating net obligations between parties. Settlement is the actual final transfer of funds that discharges those obligations.

What is a Management Information System (MIS)?

An MIS is a computer-based system that collects, processes and presents information to managers, supporting routine decision-making, planning and control through structured reports (typically summary, exception and on-demand reports).

Distinguish between TPS, MIS, DSS and EIS.

TPS (Transaction Processing System) records daily operational transactions; MIS produces routine summary reports for middle management; DSS (Decision Support System) supports semi-structured decisions with analysis and modelling; EIS (Executive Information System) provides top management with strategic, high-level summarised information.

What is branchless banking?

Branchless banking is the delivery of financial services outside conventional bank branches, using agents, mobile phones, point-of-sale devices and other technology to reach customers, promoting financial inclusion (e.g. agent-based mobile money).

What is digital banking and how does it differ from branchless banking?

Digital banking is the digitisation of all traditional banking services so customers can access them online or via mobile/internet without visiting a branch. Branchless banking specifically focuses on serving customers (often the unbanked) through agents and basic devices rather than branches; digital banking is broader and channel-rich.

What is Fintech?

Fintech (financial technology) is the use of innovative technology to design and deliver financial products and services more efficiently, such as digital payments, peer-to-peer lending, robo-advisory, insurtech and blockchain-based solutions.

What is blockchain and what is its key characteristic?

Blockchain is a distributed, decentralised digital ledger that records transactions across many computers in linked, cryptographically secured blocks. Its key characteristic is immutability: once recorded, data cannot be altered without consensus, providing transparency and tamper-resistance.

Define e-commerce and name its main models (B2B, B2C, C2C).

E-commerce is the buying and selling of goods and services over electronic networks, mainly the Internet. Main models: B2B (business-to-business), B2C (business-to-consumer), C2C (consumer-to-consumer) and others such as B2G (business-to-government).

What is a digital (e-)wallet and give a Pakistani example.

A digital wallet is an electronic application that securely stores payment information and money, allowing users to make cashless payments and transfers from a smartphone. Pakistani examples include JazzCash, Easypaisa and SadaPay.

List four common cyber security threats.

Common threats include malware (viruses, worms, trojans, ransomware), phishing, denial-of-service (DoS/DDoS) attacks, man-in-the-middle attacks, and social engineering/identity theft.

What is the CIA triad in information security and what does a firewall do?

The CIA triad is Confidentiality, Integrity and Availability, the three core goals of information security. A firewall is a hardware or software control that monitors and filters incoming and outgoing network traffic based on security rules, blocking unauthorised access.

Differentiate between symmetric and asymmetric (public key) cryptography.

Symmetric cryptography uses a single shared secret key for both encryption and decryption (fast, e.g. AES). Asymmetric cryptography uses a public/private key pair: data encrypted with the public key can only be decrypted with the matching private key (e.g. RSA), solving key distribution and enabling digital signatures.

What is two-factor authentication (2FA) and what authentication factors does it combine?

2FA requires two different types of evidence to verify identity, drawn from: something you know (password/PIN), something you have (OTP token, card, phone) and something you are (biometric such as fingerprint). For example, a password plus a one-time SMS code.