Most Imp. Computer Terms for Bank, Insurance & SSC Exams

If you want to aspire to secure a bank/ insurance/ SSC job, you need to have fundamental computer knowledge. Computer Awareness section has become an essential part of some Banking Exams. The Computer Knowledge Section in Bank Exams has a good weightage of marks. So, you need to score well in the computer knowledge section to increase your overall score in the Exam. Candidates preparing for exams such as RRB PO, Clerk, SSC CGL, NICL AO, OICL Assistant should know about computer awareness terms. In this article, we are providing you with the important computer terms that can boost your overall score in your exams.

As per the syllabus of all the Bank/ Insurance/ SSC Exams, the terms given below are the most important ones that find their place in the Computer Awareness sections:

1. Computer Virus

A computer virus is a sort of harmful code or program written or made to alter the way a computer operates. It is designed to spread from one computer to another. A virus operates by inserting or attaching itself to a legitimate program or document that supports macros to execute its code. Viruses may disrupt the system by hijacking system memory, surreptitiously collect data or shut down the system altogether.

2. Antivirus software

Antivirus software is a program used to protect computers from computer viruses such as malware, trojans and network viruses. There are many companies like McAfee, Norton, Eset and Kaspersky Labs, which specialise in creating and developing antivirus software.

3. Malware

Malware is a short form of ‘malicious software’. It is a term for viruses, worms, trojans and other harmful computer programs that are used to corrupt the system and gain access to sensitive information of the user. As per Microsoft, “[malware] is a catch-all term to refer to any software designed to cause damage to a single computer, server, or computer network.” In short, a software can be identified as a malware based on its intended use, rather than a specific technique or technology used to build it. So, a virus is a type of malware, and all the viruses are malware. But not malware is a virus.

4. Computer worm

A computer worm is a malicious, standalone malware that spreads via computer networks. It is a self-replicating software program that multiples itself and infects the computer system by affecting the functions of software and hardware programs. That is why worms are often referred to as viruses also. But computer worms are different from computer viruses in certain aspects

5. Trojan horse

A Trojan, or Trojan horse, is a type of malicious software or code that seems legitimate but can take control of your computer system. It is designed to damage, disrupt, steal, or to inflict some other harmful action on your data or network. A Trojan act as a bona fide application or file to trick the user, by introducing the virus to a system. Trojan horse does not replicate itself but can be very destructive to a computer system.

6. Authorization

Authorization is the function of giving access rights related to information security or computer security. In organisations, system administrators control the authorisation, who are specified users or group of users. Authorisation helps companies in maintaining their computer security and in maintaining the confidentiality of the company data.

7. Authentication

Authentication is the process by which the identity of a user is recognized. It is the mechanism of associating an incoming request with a set of identifying credentials. The credentials provided are compared to those on a file in a database of the authorized user’s information on a local operating system or within an authentication server. It helps the system to give access to legitimate users.

8. Hacker

A hacker is a person who uses computer, networking or other skills to overcome a technical problem. He has a complete knowledge about a specific area of computer security and uses it to gain access to the systems. The term also may refer to anyone who uses their abilities to gain unauthorized access to systems or networks in order to commit crimes. There are two types of Hackers, black hat and white hat hackers. White hat hackers use their knowledge to expose flaws in computer security practices and suggest more effective solutions to security issues. Black hat hackers use their knowledge to harm users for monetary or other gains.

9. Phishing

Phishing is a malicious practice done by individual or group who scam users. It is done by sending fake emails to get personal information of the user, such name, password or money. Phishing is conducted by posing as a legitimate user of a system and collecting data through electronic communication.

10. Spoofing attack

Spoofing is the act of disguising a communication from an unknown source as being from a known, trusted source. When an individual or program impersonates the identity of another by falsifying important data, to gain an unfair and illegitimate advantage it is called spoofing.

Have a look at some contemporary terms:

Artificial Intelligence & Machine Learning

AI-powered fraud detection systems

AI-powered fraud detection systems leverage advanced algorithms and real-time analytics to identify suspicious transactions and patterns. By continuously monitoring large volumes of data—such as transaction histories, user behavior, and device information—these systems employ techniques like anomaly detection and predictive modeling to flag potential fraud instantly. Machine learning models are trained on historical fraud data to recognize subtle indicators of unauthorized activity, reducing false positives and improving accuracy. In banking, insurance, and SSC computer awareness sections, candidates must understand how neural networks, decision trees, and clustering methods contribute to fraud detection. Knowledge of AI ethics, data privacy, and regulatory compliance is also essential.

Machine learning in banking operations

Machine learning in banking operations optimizes processes across credit scoring, risk assessment, and customer segmentation. Algorithms analyze financial data—loan histories, credit reports, and transaction records—to predict creditworthiness and personalize offerings. In risk management, supervised learning models forecast potential defaults, enabling proactive measures. Unsupervised learning uncovers hidden patterns, such as clusters of high-value customers or fraud rings. Banks use reinforcement learning to optimize trading strategies and portfolio allocations. For computer awareness in competitive exams, aspirants should be familiar with regression, classification, and clustering techniques. Understanding model training, validation, and overfitting is vital. Awareness of data governance, explainability, and model monitoring rounds out essential knowledge.

Chatbots and virtual assistants

Chatbots and virtual assistants automate customer interactions using natural language processing (NLP) and AI. In banking and insurance, these tools handle queries on account balances, transaction status, and policy details. Virtual assistants integrated into mobile apps and websites provide 24/7 support, reducing workload on call centers. They employ intent recognition and sentiment analysis to deliver accurate, context-aware responses. Knowledge of rule-based versus AI-driven chatbots, dialogue management, and API integrations is crucial for exam preparation. Candidates should understand how chatbots gather user inputs, maintain conversation flows, and escalate to human agents. Security considerations—such as authentication, data encryption, and compliance with privacy regulations—are key topics.

Robo-advisors for investment management

Robo-advisors are automated platforms that offer algorithm-driven investment advice with minimal human intervention. Using client questionnaires and risk profiles, these systems build diversified portfolios of ETFs and mutual funds. They employ modern portfolio theory and periodic rebalancing to optimize returns and manage risk. Robo-advisors reduce costs through low fees and efficient execution, making wealth management accessible to retail investors. For banking and SSC computer awareness, aspirants should know about algorithmic asset allocation, tax-loss harvesting, and performance tracking. Understanding back-testing, API data feeds, and regulatory frameworks such as SEBI guidelines in India is essential. Knowledge of cybersecurity measures protecting client data adds further depth.

Blockchain & Cryptocurrency

Blockchain technology fundamentals

Blockchain is a decentralized, distributed ledger that records transactions across a network of computers. Each transaction, or “block,” contains a timestamp, cryptographic hash of the previous block, and transaction data, ensuring immutability and transparency. Nodes in the network validate and reach consensus—commonly via Proof of Work or Proof of Stake—before adding new blocks, preventing double-spending and fraud. Decentralization removes single points of failure, enhancing security and resilience. In bank, insurance, and SSC computer awareness sections, candidates should understand concepts like peer-to-peer networks, hashing functions, consensus algorithms, and ledger synchronization. Awareness of permissioned versus permissionless blockchains and their use cases in finance is also essential.

Smart contracts in banking

Smart contracts are self-executing code snippets stored on a blockchain that automatically enforce predefined conditions when specific criteria are met. In banking, they streamline processes like loan disbursements, trade settlements, and escrow services by eliminating intermediaries, reducing costs, and minimizing errors. Smart contracts enhance transparency, as all participants can audit terms and execution on the ledger. They rely on oracles to fetch external data—such as interest rates or market prices—and trigger actions within the contract. For exam preparation, aspirants must grasp smart contract structure, languages (e.g., Solidity), deployment mechanisms, and potential vulnerabilities like reentrancy attacks. Knowledge of regulatory considerations and interoperability with legacy systems is also vital.

Digital currencies and CBDCs

Digital currencies encompass private cryptocurrencies and central bank digital currencies (CBDCs). CBDCs are government-backed digital representations of fiat money issued on secure, permissioned ledgers. They offer real-time settlement, financial inclusion for the unbanked, and programmable features—such as conditional transfers and smart-taxation. CBDCs enhance monetary policy transmission, reduce cash-handling costs, and improve payment efficiency. In contrast, private digital currencies—like stablecoins—peg value to fiat or assets, offering stability. Candidates preparing for banking and SSC exams should understand CBDC design models (retail vs wholesale), benefits like traceability and reduced fraud, and challenges such as privacy concerns, cybersecurity risks, and cross-border interoperability.

Cryptocurrency basics for banking

Cryptocurrencies are digital assets secured by cryptography and recorded on decentralized blockchains. Key features include decentralization, limited supply (in many coins), and pseudonymous transactions. Bitcoin, the first cryptocurrency, introduced peer-to-peer electronic cash without intermediaries. Altcoins—such as Ethereum—extend functionality with programmable smart contracts. In banking contexts, cryptocurrencies pose opportunities for cross-border remittances, asset tokenization, and treasury management, but also risks like volatility and regulatory uncertainty. Aspirants must know transaction flow, wallet types (hot vs cold), public/private key cryptography, and consensus mechanisms. Understanding anti-money laundering (AML) and know-your-customer (KYC) requirements applied to crypto transactions is essential for exam success.

Cloud Computing

Cloud banking concepts

Cloud banking refers to the delivery of banking services and infrastructure over cloud computing platforms. Instead of maintaining physical data centers, banks leverage public, private, or hybrid clouds to host core banking applications, customer databases, and transaction processing systems. This approach enables rapid scalability, cost optimization, and improved disaster recovery, as resources can be provisioned on demand. Cloud-native architectures use microservices and APIs to integrate with fintech partners, facilitating faster innovation cycles. For computer awareness sections, candidates should understand service models (SaaS, PaaS, IaaS), deployment models, and benefits such as elasticity, pay-as-you-use pricing, and reduced IT overhead. Awareness of regulatory compliance and data residency is also crucial.

SaaS, PaaS, IaaS models

Cloud services fall into three primary categories: Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). SaaS delivers fully managed applications over the internet—examples include web-based email and CRM systems—eliminating installation and maintenance burdens. PaaS provides development and deployment platforms, offering middleware, runtime environments, and databases, enabling developers to build applications without managing underlying infrastructure. IaaS offers virtualized computing resources—servers, storage, and networking—allowing organizations to configure and manage operating systems and applications. In banking exams, aspirants must distinguish each model’s responsibility matrix, cost implications, and typical use cases, such as SaaS for email, PaaS for application development, and IaaS for disaster recovery.

Cloud security in financial services

Cloud security in financial services encompasses measures to protect data, applications, and infrastructure hosted in the cloud. Key practices include data encryption at rest and in transit, identity and access management (IAM) with multi-factor authentication, and network security controls like firewalls and intrusion detection systems. Regular vulnerability assessments and compliance audits ensure adherence to regulations such as PCI DSS and GDPR. Security Information and Event Management (SIEM) tools monitor logs and detect anomalies in real time. For exam preparation, candidates should be familiar with shared responsibility models—cloud provider vs. customer roles—as well as certifications like ISO 27001. Understanding disaster recovery planning and incident response in cloud environments is also essential.

Hybrid cloud deployment

A hybrid cloud deployment combines on-premises infrastructure with public and/or private cloud environments, enabling data and application portability. Banks use hybrid clouds to keep sensitive workloads—such as core banking data—on private infrastructure while leveraging public clouds for noncritical services, analytics, and seasonal workloads. This model balances security, control, and scalability. Key components include secure network connectivity (VPN or dedicated links), unified management tools, and consistent governance policies across environments. In banking and SSC exams, aspirants must understand use cases like disaster recovery, regulatory compliance, and cost optimization. Awareness of challenges—such as data integration, latency, and vendor interoperability—is vital for designing effective hybrid cloud strategies.

Digital Payment Systems

UPI (Unified Payments Interface)

The Unified Payments Interface (UPI) is India’s real-time interbank payment system that enables instant fund transfers using a virtual payment address (VPA) without requiring bank account details. Launched by NPCI in 2016, UPI has revolutionized retail and peer-to-peer payments through mobile apps and simplified user authentication via UPI PIN. It supports multiple transaction types, including ‘Collect’ requests and QR code scans, and settles payments within seconds. For bank, insurance, and SSC exam aspirants, understanding UPI’s architecture, interoperable ecosystem, transaction limits, and security features—such as device binding and two-factor authentication—is critical. Awareness of recent UPI innovations like UPI Lite and auto-pay mandates adds further depth.

Digital wallets and payment gateways

Digital wallets are software-based systems that securely store users’ payment credentials—such as debit/credit cards, prepaid balances, and UPI IDs—for seamless transactions via mobile or web interfaces. They facilitate peer-to-peer transfers, merchant payments, and in-app purchases, often offering cashback and loyalty rewards. Payment gateways are technology infrastructures that authorize and process online payments by securely transmitting transaction data between merchants, acquiring banks, and issuing banks. Gateways ensure payment integrity through encryption (SSL/TLS), tokenization, and fraud detection modules. Exam preparation requires familiarity with popular Indian wallets (e.g., Paytm, PhonePe, Google Pay), gateway workflows, fee structures, settlement cycles, and compliance norms like PCI DSS. Understanding chargebacks and dispute resolution is also essential.

QR code payments

QR code payments utilize two-dimensional barcodes that encode payment information—such as merchant UPI IDs or wallet addresses—allowing customers to complete transactions by scanning codes with smartphone cameras. Static QR codes remain fixed for merchants, while dynamic codes generate unique identifiers per transaction, enhancing security and reducing reconciliation errors. QR payments eliminate the need for POS terminals and lower transaction costs, fostering digital inclusion among small merchants. For competitive exam aspirants, key concepts include QR code standards (BharatQR, EMVCo), generation mechanisms, settlement flows, and scan-and-pay processes. Awareness of offline QR payments via NFC fallback and interoperability between wallets and banks’ apps is valuable. Understanding merchant onboarding and risk controls rounds out essential knowledge.

Real-time payment systems

Real-time payment systems enable immediate clearing and settlement of transactions, providing instant fund availability for beneficiaries. Beyond UPI, systems like RTGS (Real-Time Gross Settlement) and IMPS (Immediate Payment Service) in India cater to high-value and retail payments, respectively. RTGS handles large-value transfers individually, while IMPS supports 24×7 interbank transfers up to prescribed limits. Globally, real-time rail systems—such as FPS in the UK and SEPA Instant in Europe—follow similar principles. For exam prep, candidates should distinguish settlement models (gross vs net), operating hours, transaction thresholds, and participant eligibility criteria. Understanding benefits—such as liquidity optimization, reduced settlement risk, and improved customer experience—and challenges like infrastructure costs and fraud prevention is crucial.

Advanced Cybersecurity

API security vulnerabilities

APIs (Application Programming Interfaces) enable seamless integration between banking systems, fintech apps, and third-party services, but they introduce security risks if not properly secured. Common vulnerabilities include insufficient authentication and authorization, exposing endpoints to unauthorized access; broken object-level authorization, allowing attackers to manipulate request parameters; and excessive data exposure through verbose API responses. Injection flaws—such as SQL or NoSQL injection—can compromise back-end databases. For competitive exam preparation, candidates should know OWASP API Security Top 10 risks, security measures like OAuth 2.0 for delegated access, input validation, rate limiting, and the principle of least privilege. Awareness of API gateways and regular security testing ensures robust protection.

Multi-factor authentication (MFA)

Multi-Factor Authentication (MFA) strengthens user verification by requiring two or more independent credentials: something you know (password/PIN), something you have (token or mobile device), and something you are (biometric factors). In banking and insurance, MFA mitigates risks of credential theft and unauthorized access, especially for high-value transactions and portal logins. Common MFA methods include one-time passwords (OTPs) sent via SMS or email, hardware tokens, authenticator apps, and fingerprint or facial recognition. For SSC and banking computer awareness sections, aspirants must understand MFA workflows, advantages over single-factor authentication, potential usability challenges, and standards such as FIDO2/WebAuthn. Knowledge of fallback mechanisms and risk-based authentication rounds out the topic.

Zero-trust security models

Zero-Trust is a cybersecurity approach based on the principle “never trust, always verify,” eliminating implicit trust within network perimeters. Every user, device, and request must be authenticated, authorized, and continuously validated before granting access to resources. In financial institutions, zero-trust architectures segment networks into micro-segments, implement strict access controls, and monitor all traffic using real-time analytics. Key components include identity and access management (IAM), least-privilege policies, network segmentation, and continuous monitoring with Security Information and Event Management (SIEM). For exam aspirants, understanding zero-trust vs. perimeter-based security, implementation steps, and benefits like reduced attack surfaces and improved breach containment is essential. Knowledge of related frameworks (e.g., NIST Zero Trust Architecture) is also valuable.

Ransomware-as-a-Service threats

Ransomware-as-a-Service (RaaS) platforms allow cybercriminals to rent or purchase ready-made ransomware kits, lowering technical barriers for launching attacks. RaaS operators provide malware, deployment infrastructure, and payment negotiation services in exchange for a share of ransom proceeds. Financial institutions are prime targets due to their critical data and high willingness to pay. Attack vectors include phishing emails, compromised remote desktop protocols, and software vulnerabilities. For banking and SSC computer awareness, candidates should grasp RaaS lifecycle stages—reconnaissance, delivery, encryption, and extortion—and defenses such as regular backups, endpoint protection, employee training, and network segmentation. Awareness of legal implications and incident response protocols enhances preparedness.

AI-driven cyberattacks

AI-driven cyberattacks exploit machine learning and automation to enhance the scale, speed, and sophistication of threats. Attackers use AI to craft highly personalized phishing emails, analyze network defenses to identify weak points, and automate vulnerability scanning and exploitation. Deepfake technology can mimic voices or faces to bypass voice authentication systems. In response, financial services deploy AI-powered defense tools—like anomaly detection and behavioral analytics—to detect subtle patterns of malicious activity. For exam preparation, aspirants should understand the attacker’s AI use cases, defense strategies involving adversarial machine learning, model hardening techniques, and ethical considerations. Knowledge of regulatory guidelines around AI security and privacy further rounds out the topic.

Fintech integration in traditional banking

Fintech integration involves embedding innovative financial technologies—such as peer-to-peer lending platforms, digital payment solutions, and API-driven services—into legacy banking systems. By partnering with or acquiring fintech startups, banks enhance customer experience through seamless mobile banking apps, personalized financial advice, and real-time analytics. Core banking platforms become modular, leveraging microservices architectures to accommodate new fintech offerings without extensive overhauls. For exam preparation, candidates should understand API ecosystems, open banking regulations, and vendor risk management. Knowledge of use cases—like embedded lending, wealthtech solutions, and insurtech collaborations—is essential. Awareness of challenges, including data privacy, interoperability, and change management, rounds out this topic.

Digital transformation concepts

Digital transformation refers to the strategic adoption of digital technologies to fundamentally change business operations, customer interactions, and value delivery. In banking and insurance, transformation initiatives include migrating to cloud infrastructure, automating workflows with robotic process automation (RPA), and deploying data analytics for predictive insights. Customer journeys are reimagined through omnichannel platforms, mobile-first interfaces, and personalized marketing driven by AI. For SSC and bank computer awareness sections, aspirants must grasp concepts like agile methodologies, DevOps culture, digital maturity models, and key performance indicators (KPIs) for digital initiatives. Understanding the role of change management, cybersecurity considerations, and regulatory impacts ensures comprehensive coverage.

Regulatory compliance (GDPR, PCI DSS)

Regulatory compliance ensures organizations adhere to laws and standards governing data protection and financial transactions. The General Data Protection Regulation (GDPR) mandates strict controls on personal data processing, requiring explicit consent, data minimization, and breach notification within 72 hours. The Payment Card Industry Data Security Standard (PCI DSS) outlines technical and operational requirements to secure cardholder data, including encryption, network segmentation, and regular vulnerability testing. For exam aspirants, familiarity with core principles—such as data subject rights under GDPR and the six PCI DSS control objectives—is crucial. Understanding audit processes, penalty structures for noncompliance, and best practices for maintaining compliance through policies and training is essential.

IoT security in banking

The Internet of Things (IoT) in banking encompasses smart ATMs, connected point-of-sale terminals, and wearable payment devices. Securing these endpoints requires robust measures including device authentication, firmware integrity checks, and encrypted communication channels. Network segmentation isolates IoT devices from critical systems to prevent lateral movement of threats. Regular vulnerability assessments and over-the-air (OTA) patch management address emerging risks. For computer awareness exams, candidates should understand IoT security frameworks, threat vectors like device spoofing and botnets, and mitigation techniques—such as anomaly detection and hardware-based root of trust. Awareness of regulatory guidelines on IoT data privacy and cross-border data flows further enhances readiness.

Biometric authentication systems

Biometric authentication uses unique physiological or behavioral traits—such as fingerprints, facial recognition, iris scans, or voice patterns—to verify user identities. In banking and insurance, biometrics streamline secure customer onboarding, ATM access, and high-value transaction approvals. Multimodal systems combine two or more biometric factors to improve accuracy and reduce false acceptance/rejection rates. Key considerations include template protection, liveness detection to thwart spoofing, and compliance with privacy laws governing biometric data. For exam preparation, aspirants must know enrollment processes, matching algorithms (e.g., minutiae-based fingerprint matching), and system integration workflows. Understanding challenges like sensor interoperability, user ergonomics, and fallback mechanisms (e.g., PIN-based authentication) is also vital.

Conclusion

Computer knowledge or Awareness is a broad area of knowledge which is evolving with the introduction of new terms and topics every year. So you should focus on all topics whether it is operating systems or blockchain.. So, you should be well aware of all the important terms to be able to score well in the Computer Awareness section.

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