Fintech Dictionary 📖

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

Dictionary

Acronym	Actual	Description
A2A	Account to Account	Payments that involve the transfer of funds between two accounts owned by a single party.
ARC	Accounts Receivable Entry	This occurs when a consumer check is received at a bank lockbox that’s serving a biller and converted into ACH.
API	Application Programming Interface	A computing interface that defines interactions between multiple software intermediaries.
ACH	Automated Clearing House	An electronic network that coordinates automated money transfers and electronic payments.
AUM	Assets Under Management	The total market value of the investments that a person or entity manages on behalf of clients.
AVS	Address Verification Service	A 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.
BAAS	Bank as a Service	A 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.
B2B	Business to Business	A model where a transaction or business is conducted between one business and another.
B2C	Business to Customer	A model where a business sells products or services to customers without a middleman.
BIN	Bank Identification Number	The term bank identification number (BIN) refers to the initial four to six numbers that appear on a payment card.
BVN	Bank Verification Number	This is a unique identification number that can be verified across all banking institutions in Nigeria.
C2B	Consumer to Business	A business model is where a consumer provides a product or service to a business.
C2C	Consumer to Consumer	A model where payment takes place between two different accounts for services.
CVC	Card Verification Code	An authentication code is added to a payment card for use during the authorization process.
CIP	Customer Identification Program	Financial institution procedures for proper KYC/KYB vetting.
DLT	Digital Ledger Technology	This is the use of nodes (independent computers), to replicate, share and synchronize data, in their digital ledgers.
DMP	Data Management Platform	A 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.
EFT	Electronic Funds Transfer	This is the electronic transfer of money from one bank account to another, via computer-based systems
FCA	Financial Conduct Authority	The UK's national conduct authority is responsible for overseeing financial markets.
IBAN	International Bank Account number	An alphanumeric code composed of up to 34 characters that identifies an individual account in an international transaction.
IAV	Instant Account Verification	An 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.
KYC	Know Your Customer	The process whereby a business verifies the identity of the customer.
MFA	Multi-Factor Authentication	This is a type of security system that requires users to verify their identity through more than one form of authentication.
MID	Merchant Identification Number	A number that numerically identifies each merchant to the merchant processor for accounting and billing purposes.
MTA	Machine Transfer Entry	This is for transactions initiated at ATMs.
NIBSS	Nigeria Interbank Settlement System	NIBSS is the body responsible for the infrastructure that enhances fund transfer
NIP	Nigeria Interbank Payment	NIP is an account-based, online real-time Electronic Funds Transfer (EFT) platform.
NUBAN	Nigerian Uniform Account Number	This is a standardized system for numbering accounts in Nigeria.
P2P	Peer to Peer	A decentralized platform where individuals interact directly without intermediation by a third party.
PISP	Payment Initiation Service Provider	These regulated payment businesses are authorized to execute payments on a customer’s behalf from their bank account – as long as they give explicit consent.
POS	Point of Sale	The specific time and place a retail transaction takes place also occur when a consumer initiates a payment, typically via card.
SEPA	Single European Payment Authority	Single European Payment Authority harmonizes the way Europeans make euro payments in 33 countries.
SLA	Service Level Agreements	An SLA provides specific and measurable aspects related to service offerings.
QR codes	Quick Response Codes	This is a type of 2D bar code that provides easy access to information through a smartphone.
UPI	Unified Payment Interface	A smartphone interface that allows users to make money transfers between bank accounts.