Core banking & open banking glossary
This glossary gathers definitions of the essential fintech concepts: from regulation (PSD2, KYC, AML) to technical building blocks (API, BaaS, core banking). Each definition is self-contained and links to related terms and product pages.
A
AML (Anti-Money Laundering)
AML (Anti-Money Laundering) refers to the laws, procedures and controls that detect and prevent the disguising of illicitly obtained funds as legitimate income. In bankin…
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An API (Application Programming Interface) is a set of definitions that lets software systems exchange data and functionality in a controlled way. In banking, APIs expose…
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B
BaaS (Banking as a Service)
BaaS (Banking as a Service) is a model in which a licensed bank provides its regulated banking capabilities to non-bank companies through APIs. It lets brands embed accou…
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C
Core Banking
Core banking is the central software platform that processes a bank’s day-to-day operations: accounts, deposits, loans, payments and the ledger. A modern core banking sys…
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D
Digital Onboarding
Digital onboarding is the fully online process of enrolling a new customer, from identity verification (KYC) to account activation. A smooth onboarding flow reduces drop-…
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E
E-wallet
An e-wallet (electronic wallet) is a digital account that stores funds and payment credentials to make transactions from a phone or browser. It underpins mobile payments,…
Read the definition →Embedded Finance
Embedded finance is the integration of financial services (payments, accounts, credit or insurance) directly into the products of non-financial companies. It lets busines…
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I
IBAN
An IBAN (International Bank Account Number) is a standardised international format that uniquely identifies a bank account across borders. It encodes the country, bank an…
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K
KYC (Know Your Customer)
KYC (Know Your Customer) is the process by which a financial institution verifies a customer’s identity before and during the business relationship. It is a regulatory re…
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L
Ledger
A ledger is the authoritative record of all financial transactions and balances in a banking system. A real-time, double-entry ledger guarantees the consistency and audit…
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O
Open Banking
Open Banking is a regulatory and technical framework that lets third-party providers access banking data and initiate payments through secure APIs, with the customer’s co…
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P
PSD2
PSD2 (Payment Services Directive 2) is the European directive that governs electronic payments and open banking across the EU. It mandates strong customer authentication…
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S
Sandbox
A sandbox is an isolated test environment that replicates production so developers can build and validate integrations without affecting live data. Banking platforms prov…
Read the definition →SCA (Strong Customer Authentication)
SCA (Strong Customer Authentication) is a PSD2 requirement to verify a payer using at least two independent factors: something they know, have or are. It reduces fraud on…
Read the definition →SEPA
SEPA (Single Euro Payments Area) is the EU initiative that harmonises euro-denominated bank transfers and direct debits across participating countries. It lets customers…
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