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The automated clearinghouse (ACH) system is a nationwide network through which depository institutions send each other batches of electronic credit and debit transfers. The direct deposit of payroll, social security benefits, and tax refunds are typical examples of ACH credit transfers. The direct debiting of mortgages and utility bills are typical examples of ACH debit transfers. While the ACH network was originally used to process mostly recurring payments, the network is today being used extensively to process one-time debit transfers, such as converted check payments and payments made over the telephone and Internet.
The Reserve Banks and Electronic Payments Network (EPN) are the two national ACH operators. As an ACH operator, the Reserve Banks receive files of ACH payments from originating depository financial institutions, edit and sort the payments, deliver the payments to receiving depository financial institutions, and settle the payments by crediting and debiting the depository financial institutions' settlement accounts. The Reserve Banks and EPN rely on each other to process interoperator ACH payments--that is, payments in which the originating depository financial institution and the receiving depository financial institution are served by different operators. These interoperator payments are settled by the Reserve Banks.
Source: https://www.federalreserve.gov/paymentsystems/fedach_about.htm
In computer science Artificial intelligence refers to an ability to design smart machines which simulate human intelligence.
They are programmed to process information like humans and mimic their actions. To any machine that exhibits traits associated with a human mind, such as learning and problem-solving can be called with this term . The ability to rationalize and take actions that have the best chance of achieving a specific goal would be the ideal characteristic of AI.
Often AI is mixed up with ML Machine Learning
An application programming interface, or API, often acts as a mediator that enables a software program to interact with other software. In the context of trading for example, an API often refers to the interface that enables software to connect with a broker to obtain real-time pricing data or place trades.
But also in Open Banking or Open Finance the term API is wide used. In this context it's not just an interface but it can mean also the business case around the API's. Multibanking connectivity between different Banks or Fintech's or in the case of Open Finance the interconnectivity between Banks, Insurancen, Asset Managers and other actros in the Financial Industry.
A company that buys the rights to another company or business relationship. Acquirers are also financial institutions which buy rights to a merchant account which allows them to service and manage the merchant’s bank account.
This is a set of laws and regulations. Specific procedures that aim at preventing criminals from disguising illegally obtained funds as legitimate income. Source
BIC means Business Identifier Code, often also called SWIFT code.
This is a code in a standard format which identifies banks and other financial institutions worldwide. Basically when an international bank transfer is done this code is needed to identify the bank of the receiver of the money.
But how does a BIC or SWIFT code look like and how is he built?
Here an example: BANKCHFO101
- First four digits are letters only and refer to the specific bank’s code,
- Also letters only are the next two digits. They refer to the country’s code,
- The next two digits can be letters or numbers and refer to the bank’s specific location,
- The last three digits are the branch’s code, which are a combination of letters and numbers (fyi: not all BICs include branch information.)
It is often defined as a method of data security used to prevent data breaches, such as credit card hacks. Biometrics uses any data that is physically unique to an individual that can prove identity, such as a fingerprint, rather than relying on passwords or PIN codes that can be more easily hacked.
It is a technology that aims to protect data and preventing data breaches.
Bitcoin is a digital currency also known as cryptocurrency, that was created in January 2009.
The promise offered are lower transaction fees than traditional online payment mechanisms. Unlike government-issued currencies. It is important to say that Bitcoins are not backed by any country's or any central bank nor government.
No physical bitcoins exists, only balances kept on a public ledger, so called Blockchain, in the cloud, that is verified by a massive amount of computing power. Despite its not being legal tender, Bitcoin charts high on popularity, and has triggered the launch of other virtual currencies collectively referred to as Altcoins.
A blockchain is a continuously growing list of records/ledgers, called blocks, which are linked and secured using cryptography, eliminating the need for a third party to process payments or other underlyings. Blocks, or the most recent transactions being recorded, are like an individual banking statement. Each completed block is added to the chain, and another block begins, forming the constantly growing blockchain.
The Chief Financial Officer (CFO) is the officer of a company that has primary responsibility for managing the company's finances, including financial planning, management of financial risks, record-keeping, and financial reporting.
In some sectors, the CFO is also responsible for analysis of data. Some CFOs have the title CFOO for chief financial and operating officer. In the United Kingdom, the typical term for a CFO is finance director (FD). The CFO typically reports to the Chief Executive Officer (CEO) and the board of directors and may additionally have a seat on the board.
The CFO supervises the finance unit and is the chief financial spokesperson for the organization. The CFO directly assists the chief operating officer (COO) on all strategic and tactical matters relating to budget management, cost–benefit analysis, forecasting needs, and securing of new funding.
https://en.wikipedia.org/wiki/Chief_financial_officer
Cash flow is defined as the(net) amount of real or virtual movement of money in and out of the business.Positive cash flow indicates an increasing of liquid assets.
Cash Management refers to a broad area of corporate processes of collecting and managing cash, as well as using it for normally very short-term investing. In banking Cash Management or Treasury Cash Management refers to certain services offered related to cash flow.
Cash Pooling allows companies to combine cash and liquidity management. Different subsidiaries of a corporate combine their credit and debit positions in to one bank account for the purpose of making the liquidity management in the treasury department of the corporate easier reducing mainly FX costs and profit from scaling effects.
Cloud computing is the delivery of different services on external data centers and without direct management of the hardware by the user. These resources include tools and applications like data storage, servers, databases, networking, and software.
Under business perspective Cloud computing means a new way of providing software services. It can make the rollout of a software solution much faster on one hand. But also when the business model is selling software-as-a-service the cloud computing is a pre-requisite.
Often ‘delivered in the cloud’ refers to the software that runs in one or several of the cloud offerings of the Big Tech’s like Amazon AWS, Google Cloud, Microsoft Azure, IBM Cloud. But this is not mandatory. Any Datacenter can be a Cloud provider.
A centralized system established by a bank which allows its customers to conduct their business irrespective of the bank’s branch. Thus, it removes the impediments of geo-specific transactions. In fact, CORE is an acronym for "Centralized Online Real-time Exchange", thus the bank’s branches can access applications from centralized data centres. Core banking is now also being extended to address not only the retail clients but also the requirements of corporate clients and provide for a comprehensive banking solution.
A group of laws and regulations that have been implemented to reign in the financing of terrorist activity. Under these policies, most financial institutions are required to fulfil many strict requirements regarding monitoring customers’ transactions and behaviour, conducting proper due diligence, and maintaining appropriate records.
Crowdfunding makes use of the easy accessibility of vast networks of people through social media and crowdfunding websites to bring investors and entrepreneurs together with the use of small amounts of capital from a large number of individuals to finance a new business venture.
The potential to increase entrepreneurship by expanding the pool of investors from whom funds can be raised beyond the traditional circle of owners, relatives and venture capitalists.
Crowdlending same like crowdfunding allows companies to finance themselves through a large and diverse group of people (crowd = crowd, lending = lending money), without having to go to a bank. In the crowdlending model people lend small amounts of money to a company in exchange for a financial return stipulated in a loan agreement.
Crowdfunding is the crowd investment of a certain sum in equity.
Crowdsourcing involves obtaining work, information or opinions from a large group of people who submit their data via the Internet, social media and smartphone apps. People involved in crowdsourcing sometimes work as paid freelancers, while others perform small tasks on a voluntary basis.
A digital or virtual currency that uses cryptography for security and is often difficult to counterfeit because of this security feature. Many cryptocurrencies are decentralized systems based on blockchain technology; a distributed ledger enforced by a disparate network of computers.
A big feature of a cryptocurrency, and arguably its biggest allure is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.
A cryptocurrency exchange is any system that trades cryptocurrencies with other assets. Like a traditional financial services company.
The cryptocurrency exchange's core operation is to allow for the buying and selling of these digital assets, as well as others.
One cryptocurrency exchange is also known as a digital currency exchange (DCE). SIX the operator of the Swiss Interbank Clearing is developing their first Marketplace the SDX - SIX Digital Exchange (2019)
An individual person who commits cybercrimes, where he/she makes use of a lot of different technology tools especially a computer either as a tool or as a target or as both.
Cybersecurity aims to protect and defend internet-connected systems, including hardware, software and data, from external and internal cyberattacks.
A digital system for recording the transaction of any kind of assets like payments or securities transactions in which this transactions and their details are recorded in multiple places at the same time. Unlike traditional DB's databases, distributed ledgers have no central data store or administration functionality. It is a distributed database.
Also known as data leak is an unauthorized access and retrieval of private information to companies, the state or to individuals by an individual, group, or software system. It is a cybersecurity breakdown which happens when data, intentionally or unintentionally, falls into the wrong hands without the knowledge of the user or owner.
An individual who was born after the widespread adoption of digital technology. The term digital native doesn't refer to a particular generation like Gen Z or others but is primarily a catch-all category for young people who have grown up using modern technology like the Internet, computers and smart phones. This exposure to tech in the early years is believed to give digital natives a greater familiarity with and understanding of tech than people who were born before it was widespread.
The Dodd-Frank Wall Street Reform and Consumer Protection Act refers to a financial reform legislation that was passed by the Obama administration in 2010 as a response to the financial crisis of 2008.
Named after sponsors US Senator Christopher J. Dodd and US Representative Barney Frank, the act's provisions, aims to decrease various risks in the US financial system. The act established a number of new government agencies tasked with overseeing various components of the act and by extension, various aspects of the banking system. President Donald Trump has pledged to repeal Dodd-Frank and on May 22, 2018, the House of Representatives voted to roll back significant pieces of Dodd-Frank.
The European AutomatedClearing House Association (EACHA) is the technical cooperation forum ofEuropean ACHs. Its membership, currently comprising 26 institutions, gathers twice a year to discuss European developments in retail payments. The philosophy of EACHA is that healthy competition also means teamwork. This is why EACHA believes firmly in developing a common vision for the future, and favouring harmonious implementation of European policies and schemes including interoperability based on open standards. www.eacha.org
The European Banking Authority (EBA) is an independent EU Authority which works to ensure effective and consistent prudential regulation and supervision across the European banking sector. Its overall objectives are to maintain financial stability in the EU and to safeguard the integrity, efficiency and orderly functioning of the banking sector.
The main task of the EBA is to contribute to the creation of the European Single Rulebook in banking whose objective is to provide a single set of harmonised prudential rules for financial institutions throughout the EU. The Authority also plays an important role in promoting convergence of supervisory practices and is mandated to assess risks and vulnerabilities in the EU banking sector.
The EBA was established on 1 January 2011 as part of the European System of Financial Supervision (ESFS) and took over all existing responsibilities and tasks of the Committee of European Banking Supervisors.
Source: https://eba.europa.eu/about-us
The mission of the EBA is to foster dialogue and experience exchange amongst payments industry practitioners towards a pan-European vision for payments. They pursue the mission through involving member organisations and relevant stakeholders in thought leadership on innovation, helping the members to understand and implement regulation and by supporting the development of market practices.
The EBA-ABE activities cover four core areas:
-Thought Leadership & Innovation: advancing the understanding of new market trends through working groups, task forces and open fora.
-Market Practices & Regulatory Guidance: providing guidance on market regulation and implementation through practitioners' panels.
-Networking & Events: fostering pan-European practitioner exchange through EBAday and other events.
-Training & Education: providing training & educational services on relevant payments and transaction banking topics to the EBA community through summer and winter schools and e-learning.
Source: https://www.abe-eba.eu/about-eba/eba-at-a-glance/
It is a unique organisation that aims to make it possible for citizens and businesses in the Single Euro Payments Area (SEPA) to pay with a single payment account or card across Europe as easily and conveniently as they do in their home country.
The EPC ’s goal is to contribute to harmonised payments in SEPA – a goal which ultimately supports European competitiveness and innovation.
The EPC is an international not-for-profit association formed of 75 members who are PSP’s (mostly banks) or associations of PSP’s.. In constant dialogue with other stakeholders and regulators at European level, its role is to support and promote the integration and development of European payments. The EPC is not part of the European Union institutional framework.
Source: https://www.europeanpaymentscouncil.eu/about-us/introducing-epc
Enterprise resource planning (ERP) is the integrated management of main business processes, often in real-time and mediated by software and technology.
ERP is usually referred to as a category of business management software — typically a suite of integrated applications—that an organization can use to collect, store, manage, and interpret data from these many business activities.
ERP provides an integrated and continuously updated view of core business processes using common databases maintained by a database management system. ERP systems track business resources—cash, raw materials, production capacity—and the status of business commitments: orders, purchase orders, and payroll. The applications that make up the system share data across various departments (manufacturing, purchasing, sales, accounting, etc.) that provide the data.
ERP facilitates information flow between all business functions and manages connections to outside stakeholders.
Source: https://en.wikipedia.org/wiki/Enterprise_resource_planning
It means of securing digital data using an algorithm and a password, or key. The encryption process translates information using an algorithm that turns plain text unreadable. When an authorized user needs to read the data, they may decrypt the data using a binary key.
Encryption is an important way for individuals and companies to protect sensitive information from hacking. For example, websites that transmit credit card and bank account numbers should always encrypt this information to prevent identity theft and fraud.
Launched in 2015, Ethereum is a decentralized software platform that enables smart contracts and distributed applications (DAP) to be built and run without any downtime, fraud, control or interference from a third party. The platform is also the basis for its own virtual currency, Ether. Ethereum is not just a platform but also a programming language (Turing complete) running on a blockchain, helping developers to build and publish distributed applications. The potential applications of Ethereum are wide ranging.
Financial Information eXchange (FIX) is a vendor-neutral electronic communications protocol for the international real-time exchange of securities transaction information, which is useful to funds, investment managers, and firms.
The FIX Protocol messaging standard transfers accurate and timely financial information concerning securities trades through and across security exchange houses. Its use enables users to make timely and accurate decisions. FIX has become the de-facto messaging standard for pre-trade, trade, and post-trade communication, as well as for U.S. regulatory reporting. It is compatible with almost every commonly used network technology. FIX Protocol, Ltd. owns and maintains the FIX Protocol.
A biometric software application capable of uniquely identifying or verifying a person by comparing and analysing patterns based on the person's facial contours. Facial recognition is mostly used for security purposes, though there is increasing interest in other areas of use. In fact, facial recognition technology has received significant attention as it has potential for a wide range of application related to law enforcement as well as other enterprises. Facial recognition is also known as face recognition.
A financial services sector that emerged in the 21st century. Essentially, fintech is any technological innovation in the financial sector. This can include advances in financial education, retail banking, investment and crypto-currencies.
Examples of fintech include: Securities trading apps and websites, Peer-to-peer lending sites that open competition for loans, thereby reducing rates, Robo-advisor services that provide online, algorithm-based portfolio management, All-in-one online personal finance management, and Budgeting tools. Fintech has four categories of users: B2B Business-to-business for banks, B2B2C Business-to-business for banks’ clients, B2SME Business-to-client for small businesses and B2C Business-to-client for consumers. The fintech industry is growing rapidly, and its growth is expected to continue.
Google, Apple, Facebook, and Amazon — the four most powerful American technology companies.
The General Data Protection Regulation (GDPR) 2016/679 is a regulation in EU law on data protection and privacy for all individuals within the European Union and the European Economic Area. It also addresses the export of personal data outside the EU and EEA areas.
An initiative by SWIFT that aims to streamline and increase transparency of cross-border payments. The initiative introduces a multilateral service level agreement across banks to create a common standard for processing cross-border payments, which in turn will transform correspondent banking.
Through the first of these service level agreements, corporate treasurers will gain same-day use of funds, have access to rich payment information which is transferred between parties to a transaction, and have greater transparency and predictability of fees, including FX costs.
A labour market that is characterised by the prevalence of short-term contracts or freelance work as opposed to permanent jobs. This economy undermines the traditional economy of full-time workers who rarely change positions and instead focus on a lifetime career.
A cloud computing environment that uses a mix of on-premises, private cloud and third-party, public cloud services with orchestration between the two platforms. By allowing workloads to move between private and public clouds as computing needs and costs change, hybrid cloud gives businesses greater flexibility and more data deployment options.
The Incentage Innovation Acceleration Platform (IAP) enables financial institutions to bring innovations to market faster, easier and keep up maintainability. It deblocks dependency from scarce developer resources and standardises the architecture.
An international bank account number (IBAN) is a standard international numbering system, developed to identify bank accounts from around the world. Banks in Europe originally developed the system to simplify transactions involving bank accounts from other countries. An IBAN does not replace a bank's own account number; rather, this is an additional number, with further information, which helps in identification for overseas payments.
In the Treasury department acting like an In-House Bank is becoming everyday more popular. They are typically modelled to execute key operations such as funding, liquidity management, intercompany lending, foreign exchange (FX) management and settlements. All the subsidiaries are dealing with the in-house bank as the only centralized point.
A system of interrelated computing devices, mechanical and digital machines, objects, animals or people that are provided with unique identifiers (UIDs) and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction.
The initial sale of stock issued by a company to the public, what means the listing process for a stock exchange. IPO is underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock exchanges.
In the ISO organization this topic is called UNIFI Universal Financial Industry Message Scheme. As every Standard gets a number this received the code ISO 20022. The aim is to standardize the following financial business domains: Payments, Securities, Cards, FX-Foreign Exchange, Trade Services. The success is expanding all over the world and in all five domains but especially in Payments and Securities. This messages defined by ISO20022 Universal financial industry message scheme (UNIFI) are technically based on XML (Extensible Mark-up Language). http://www.iso20022.org/
An international standard-setting body composed of representatives from various national standards organizations. Founded on 23 February 1947, the organization promotes worldwide proprietary, industrial and commercial standards.
The use of technological innovations designed to squeeze out savings and efficiency from the current insurance industry model. Insurtech is a combination of the word’s “insurance” and “technology,” inspired by the term fintech.
The belief driving insurtech companies and investments by venture capitalists in the space is that the insurance industry is ripe for innovation and disruption. Insurtech is exploring avenues that large insurance firms have less incentive to exploit, such as offering ultra-customized policies, social insurance and using new streams of data from internet-enabled devices to dynamically price premiums according to observed behaviour.
JSON (JavaScript Object Notation) is a lightweight data-interchange format, based on a subset of the JavaScript Programming Language, Standard ECMA-262. It is easy for humans to read and write. It is easy for machines to parse and generate.
http://www.json.org/
A standard protocol driven by regulators and market participants most banks that ensures bodies know detailed information about their clients' risk tolerance, investment knowledge, and financial position. KYC initiatives aim to protect both clients and firms.
Lendingtech or lending technology is defined as a unique combination of primary information source, screening and underwriting policies/procedures, loan contract structure, and monitoring strategies/mechanisms.
Messaging commerce or conversational commerce is a term coined by Uber's Chris Messina in 2015. The term refers to the intersection of messaging apps and shopping. Meaning, the trend toward interacting with businesses through messaging and chat apps such as Facebook Messenger, WhatsApp, Talk, and WeChat.
The middle office is the department in a financial services company, investment bank, or hedge fund that manages risk and calculates profits and losses. A financial services company is logically broken up into three parts: The front office includes sales personnel and corporate finance, the middle office manages risk and IT resources, and the back office provides administrative, support, and payment services.
Middleware is the software that connects network-based requests generated by a computer client to the back-end data that client is requesting. It is a general term for software that serves to "glue together" separate, often complex and already existing programs.
Middleware programs come in on-premises software and cloud services, and they can be used independently or together, depending upon the use case. While cloud providers bundle middleware into cloud services suites, such as middleware as a service (MWaaS) or integration PaaS (iPaaS), industry researchers note that many businesses still choose independent middleware products that fit their specific needs.
NACHA is a nonprofit organization that convenes hundreds of diverse organizations to enhance and enable electronic payments and financial data exchange within the U.S. and across geographies. Through development of rules, standards, governance, education, advocacy, and in support of innovation, NACHA’s efforts benefit the providers and users of those systems.
NACHA leads groups focused on API standardization, authors the Quest Operating Rules for EBT, and is the steward of the ACH Network, a payment system that universally connects all U.S. bank accounts and facilitates the movement of money and information. In 2017, there was a total of nearly 26 billion ACH transactions. Of these, 21.5 billion ACH payments valued at $47 trillion moved across the ACH Network, and more than 4 billion were on-us transactions within financial institutions.
www.nacha.org
A short-range high frequency wireless communication technology that enables the exchange of data between devices.
Sanctions are imposed by countries or regions normally to serious criminals and terrorists who act internationally or to complete countries too. The aim of the sanctions are to dry out the cash flow of these people, organisations or countries.
Banks need to check every transaction they make against the respective list of the operating country or even against the list of the money receiving country. Sometimes it’s even needed to check the local list when a certain currency is used but the transaction is not crossing the home country of the currency. This is so with the US Dollar.
What humans can do relatively easy is recognise a name, a nickname or a false spelling. But this is quite hard for computers. This is the cause that algorithms had to be invented to get a fuzzy view on that lists. The problem of this fuzzy algorithms is, that depending on the settings they produce a low or a high number of false positives. False positives are matches or hits that the algorithm recognise and a compliance operator has to review. This ends in high workload in the banks if the algorithm is too fuzzy. But worse on compliance perspective, is a false negative.
In today’s world where all the transactions are becoming faster not just in payments with all the Instant Payments Schemes popping up, the Sanctions Filter needs to be always faster and much more exact.
An online, real-time system, designed to automatically reconcile incoming statements from a bank's nostro accounts against internal general ledger statements, or directly against the general ledger database.
An electronic system developed to execute securities orders in an efficient and cost-effective manner. Brokers and dealers use order management systems when filling orders for various types of securities and can track the progress of each order throughout the system. An OMS is also referred to as a "trade order management system."
Open banking or more extended Open Finance is a business model that provides a user with a network of financial institutions’ data through the use of application programming interfaces (APIs). The Open Banking Standard defines how financial data should be created, shared and accessed. By relying on networks instead of centralization, open banking helps financial services customers to securely share their financial data with other financial institutions.
Benefits include more easily transferring funds and comparing product offerings to create a banking experience that best meets each user’s needs in the most cost-effective way. Open banking is also known as "open bank data."
The practice of hiring a third party (data center) outside a company to perform services and create goods that traditionally were performed in-house by the company's own employees and staff.
The technical and operational standards that businesses must follow to ensure that credit card data provided by cardholders is protected.
PCI compliance is enforced by the PCI Standards Council, and all businesses that store, process or transmit credit card data electronically are required to follow the compliance guidelines.
This code identifies a SWIFT registered provider. The partner identifier code is equivalent to the BIC Business Identifier Code (see above BIC).
When a provider starts a relationship with SWIFT the company will register under the SWIFT Partner Program. This grants basic entitlements to SWIFT information and services. Having signed up and received the status as registered provider it’s the pre-requisite to access any other form of relationship under the SWIFT Programme.
The Incentage PIC is: PTSBCHSS
Term used in Treasury environment where a single unit is acting as an In-House Bank. Eventually this unit can execute payments from his bank account on behalf of a company subsidiary.
POS is a critical piece of a point of purchase, is the place where a customer executes the payment for goods or services, and where sales taxes may become payable. It can be in a physical store, where POS terminals and systems are used to process card payments, or a virtual sales point such as a computer mobile electronic device.
Europe's revised payments services directive has opened a wealth of opportunity for fintechs in establishing relationships with banks, and wholly changed the payments landscape. The directive was established to create competition from non-banks in the payments sector, as well as focusing on consumer protection, and creating a harmonisation rule set for payments providers.
Pain.001 is part of the ISO 20022 standard. “Pain” stands for “Payment Initiation” and the 001 message is the Corporate to Bank Credit Transfer initiation message. Banks tend to have their own flavours, rules and recommendations which have to be implemented before a bank is able to accept a payment.
A Payment Factory is a concept and not a product. It is an Accounts Payable (AP) structure that centralises the payments activities. The processes that previously took place at a subsidiary level will be standardised.
One important benefit is that it reduces the need for working capital and with that the need of a short term bank loan or credit line.
The front-end technology that reads payment cards and sends customer information to the merchant acquiring bank for processing.
A payment gateway is basically the connections between two applications like the payment messaging application in a bank and the local clearing and settlement system.
Incentage provide different communication gateway's like: SIC5, euroSIC, SECOM, SWIFT
Payments Initiation, fraud management and analytics, reconciliation, integration in to the ERP system (SAP). This is what payment software for Corporates mostly are doing.
Depending on the provider huge innovations were implemented in the last years. Especially Cloud platforms are demanded because of the easy to use and the ongoing improvement of the product.
The payment software is mostly needed to implement the connection between the Corporate and the Bank and to solve the format issues in a smooth manner.
A type of 2D bar code that is used to provide easy access to information through a smartphone.
Term used in Treasury environment where a single unit is acting as an In-House Bank. Eventually this unit can receive payments from a third party directly on his bank account on behalf of a company subsidiary.
Reference data is a catch-all term used to describe counterparty and security identifiers used when making a trade. As opposed to market data the reference data is used to complete financial transactions and settle those transactions.
The management of regulatory or legal processes within the financial industry through technology. The main functions of regtech and lawtech include regulatory monitoring, reporting, and compliance.
SEPA - Single Euro Payments Area aims to create a zone for the euro in which all electronic payments are considered domestic. All the differences between national and intra-European cross border payments stops to exist.
SEPA project aims to improve the efficiency of cross border payments and turn the fragmented national markets for euro payments into a single domestic one: SEPA will enable customers to make cashless euro payments to anyone located anywhere in the area using only a single bank account and a single set of payment instruments.
One of the characteristics of SEPA is, that the recipient of a payment (the creditor) receives the money latest the day after (T+1)
SEPA Instant Payments is the same as above but much faster. Instead of T+1 the payments are processed in 10 seconds from Bank to Bank and this 24/7/365.
An SLA provides specific and measurable aspects related to service offerings. For example, SLAs are often included in signed agreements between Internet service providers (ISP) and customers.
SLA is also known as an operating level agreement (OLA) when used in an organization without an established or formal provider-customer relationship.
Society for Worldwide Interbank Financial Telecommunications (SWIFT) is a member-owned cooperative that provides safe and secure financial transactions for its members.
Established in 1973, SWIFT uses a standardized proprietary communications platform to facilitate the transmission of information about financial transactions. Financial institutions securely exchange this information, including payment instructions, among themselves.
A software licensing model in which access to the software is provided on a subscription basis, with the software being located on external servers rather than on servers located in-house.
SaaS is typically accessed through a web browser, with users logging into the system using a username and password. Instead of each user having to install the software on his computer, the user is able to access the program via the internet. Businesses commonly use SaaS in customer retention management, human resources, and procurement.
Governments everywhere use sanctions to combat financial crime and limit criminal access to goods such as weaponry and narcotics. Screening is not just checking the lists. Some of the included challenges are:
- Balancing transparency with customer experience
- Handling large payment flows
- Data source integration
- Language barriers
- Real-time capability
Over the last few years the Treasury management systems (TMS) have evolved significantly. This is mainly because of a maturing cloud market but also about the continued advancement of remote banking communication systems. The essential and crucial functions of the TMS are:
- Real-time cash management
- Forecast the cash flow
- Payment Reconciliation
- Debt management
- Trade Finance
Technologically seen there are two categories of the TMS. They are Local systems or Cloud-hosted systems.
Mostly the Corporate Treasury is integrated in the Finance Group within the organization. Normally the Treasurer reports to the CFO. The Corporate Treasury function sometimes it might not be that straightforward to assign the roles and responsibilities of one Treasury department. Their functions might differ from another setup in a different organization.
A smartphone application which allows users to transfer money between bank accounts. It is a single-window mobile payment system developed by the National Payments Corporation of India (NPCI).
It eliminates the need to enter bank details or other sensitive information each time a customer initiates a transaction.
Individuals that manage their finances through cash transactions instead of established financial services such as checking accounts, savings accounts, credit cards and loans.
This is a start-up company with a value of over $1bn.
Financing that investors provide to start-up companies and small businesses that are believed to have growth potential. Venture capital generally comes from well-off investors, investment banks and any other financial institutions.
Banking services between merchant banks and other financial institutions. This type of banking deals with larger clients, such as large corporations and other banks, whereas retail banking focuses more on the individual or small business. Wholesale banking services include currency conversion, working capital financing, large trade transactions and other types of services.
A standard that was developed to improve the way in which financial data is communicated, making it easier to compile and share this data.
eXtensible Business Reporting Language (XBRL) is a type of XML (extensible markup language), which is a specification that is used for organizing and defining data. XBRL uses tags to identify each piece of financial data, which then allows it to be used programmatically by an XBRL-compatible program. XBRL allows for easy transmission of data between businesses.
XML was designed to store and transport data. It was also designed to be both human- and machine-readable. In computing, XML is a markup language that defines a set of rules for encoding documents. https://www.w3schools.com/xml/default.asp
A business model that lets firms and individuals conduct business over the internet, means electronic networks. Electronic commerce operates in all four of the following major market segments:
• Business to business
• Business to consumer
• Consumer to consumer
• Consumer to business
