Fintech Dictionary 📖

Below you will find a glossary of common terms and brief descriptions of different terminologies in Banking.


A2AAccount to AccountPayments that involve the transfer of funds between two accounts owned by a single party.
ARCAccounts Receivable EntryThis occurs when a consumer check is received at a bank lockbox that’s serving a biller and converted into ACH.
APIApplication Programming InterfaceA computing interface that defines interactions between multiple software intermediaries.
ACHAutomated Clearing HouseAn electronic network that coordinates automated money transfers and electronic payments.
AUMAssets Under ManagementThe total market value of the investments that a person or entity manages on behalf of clients.
AVSAddress Verification ServiceA security system that works to verify that the billing address entered by the customer is the same as the one associated with the cardholder’s credit card account.
BAASBank as a ServiceA modular approach to supplying complete banking processes that allow brands to easily embed financial services into their products without having to worry about building banking infrastructure or obtaining a license.
B2BBusiness to BusinessA model where a transaction or business is conducted between one business and another.
B2CBusiness to CustomerA model where a business sells products or services to customers without a middleman.
BINBank Identification NumberThe term bank identification number (BIN) refers to the initial four to six numbers that appear on a payment card.
BVNBank Verification NumberThis is a unique identification number that can be verified across all banking institutions in Nigeria.
C2BConsumer to BusinessA business model is where a consumer provides a product or service to a business.
C2CConsumer to ConsumerA model where payment takes place between two different accounts for services.
CVCCard Verification CodeAn authentication code is added to a payment card for use during the authorization process.
CIPCustomer Identification ProgramFinancial institution procedures for proper KYC/KYB vetting.
DLTDigital Ledger TechnologyThis is the use of nodes (independent computers), to replicate, share and synchronize data, in their digital ledgers.
DMPData Management PlatformA data management platform is a tool that facilitates the collation and management of data from various sources including first, second, and third-party audience data.
EFTElectronic Funds TransferThis is the electronic transfer of money from one bank account to another, via computer-based systems
FCAFinancial Conduct AuthorityThe UK's national conduct authority is responsible for overseeing financial markets.
IBANInternational Bank Account numberAn alphanumeric code composed of up to 34 characters that identifies an individual account in an international transaction.
IAVInstant Account VerificationAn account ownership verification tactic where a user provides credentials for their financial institution, and an automated process signs in on their behalf to retrieve account information.
KYCKnow Your CustomerThe process whereby a business verifies the identity of the customer.
MFAMulti-Factor AuthenticationThis is a type of security system that requires users to verify their identity through more than one form of authentication.
MIDMerchant Identification NumberA number that numerically identifies each merchant to the merchant processor for accounting and billing purposes.
MTAMachine Transfer EntryThis is for transactions initiated at ATMs.
NIBSSNigeria Interbank Settlement SystemNIBSS is the body responsible for the infrastructure that enhances fund transfer
NIPNigeria Interbank PaymentNIP is an account-based, online real-time Electronic Funds Transfer (EFT) platform.
NUBANNigerian Uniform Account NumberThis is a standardized system for numbering accounts in Nigeria.
P2PPeer to PeerA decentralized platform where individuals interact directly without intermediation by a third party.
PISPPayment Initiation Service ProviderThese regulated payment businesses are authorized to execute payments on a customer’s behalf from their bank account – as long as they give explicit consent.
POSPoint of SaleThe specific time and place a retail transaction takes place also occur when a consumer initiates a payment, typically via card.
SEPASingle European Payment AuthoritySingle European Payment Authority harmonizes the way Europeans make euro payments in 33 countries.
SLAService Level AgreementsAn SLA provides specific and measurable aspects related to service offerings.
QR codesQuick Response CodesThis is a type of 2D bar code that provides easy access to information through a smartphone.
UPIUnified Payment InterfaceA smartphone interface that allows users to make money transfers between bank accounts.