FinTech banking terminology.

.BANK is a gated domain, like .gov or .edu, but for verified banks. Replacing .com, which can be purchased by anyone, .BANK quickly verifies that the website is authentically from our bank, so you can interact with confidence when you see the ‘.BANK’ in our website URL.

Source: Provided by Louis Aponte, Information Security Officer

Two-factor authentication, also called Two-Step Verification, ties a device to a login account. It’s a valuable security measure because if someone got your password, they would attempt to log in to your account from a new device. However, 2FA would trigger an alert that would require you to approve that new device before granting them access. This free feature protects your personal email, bank accounts, and more.

Source: HelpWithMyBank.gov

Interest that has been earned but not yet paid.

Electronic funds-transfer system that facilitates payments in the U.S. and internationally. The ACH is run by Nacha.

Source: HelpWithMyBank.gov

Under the Equal Credit Opportunity Act, a creditor’s refusal to grant credit on the terms requested, termination of an existing account, or an unfavorable change in an existing account.

Set of defined rules that enable different applications to communicate with each other. It acts as an intermediary layer that processes data transfers between systems, letting companies open their application data and functionality to external third-party developers, business partners, and internal departments within their companies.

Source: HelpWithMyBank.gov

The cost of credit on a yearly basis, expressed as a percentage.

Source: HelpWithMyBank.gov

A percentage rate reflecting the total amount of interest paid on a deposit account based on the interest rate and the frequency of compounding for a 365-day year.

Source: HelpWithMyBank.gov

A machine, activated by a magnetically encoded card or other medium, that can process a variety of banking transactions. These include accepting deposits and loan payments, providing withdrawals, and transferring funds between accounts.

Businesses selling goods or services to another business.

A Bad Actor is a term for cybercriminals performing illegal activities using digital systems.

Set of defined rules that enable different applications to communicate with each other. It acts as an intermediary layer that processes data transfers between systems, letting companies open their application data and functionality to external third-party developers, business partners, and internal departments within their companies.

Source: HelpWithMyBank.gov

A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract.

BIN sponsorship allows fintech businesses to quickly gain direct access to the payment processing and card management services provided by the likes of Visa or Mastercard without going through the process of joining a major card scheme. It provides fintechs with quickest way to launch a financial product with a debit, credit or prepaid card attached.

Source: HelpWithMyBank.gov

A negotiable instrument issued by a bank in exchange for funds, usually bearing interest, deposited with the bank.

Source: HelpWithMyBank.gov

A demand deposit account subject to withdrawal of funds by check.

Source: HelpWithMyBank.gov

The maximum amount of credit that is available on a credit card or other line of credit account.

Transactions performed electronically, often using internet or mobile banking.

Payments made electronically, often using the internet or mobile applications.

Source: HelpWithMyBank.gov

Prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, or because an applicant receives income from a public assistance program.

Source: HelpWithMyBank.gov

The transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than by check or cash. (Wire transfers, checks, drafts, and paper instruments do not fall into this category.)

Source: FDIC.gov

The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the Congress to maintain stability and public confidence in the nation’s financial system. The FDIC insures deposits; examines and supervises financial institutions for safety, soundness, and consumer protection; makes large and complex financial institutions resolvable; and manages receiverships.

The clearing service for financial institutions to provide immediate end-to-end payments to customers. The key difference between this service and the Fed’s previous system is that FedNow will be online 24/7, processing transactions in real time.

Source: FHA.gov

Provides mortgage insurance on loans made by FHA-approved lenders nationwide.

Source: myfico.com

A FICO Score is a three-digit number based on the information in your credit reports. It helps lenders determine how likely you are to repay a loan. This, in turn, affects how much you can borrow, how many months you have to repay, and how much it will cost (the interest rate).

A Fintech company is an institution that uses technology to improve financial services.

Source: HelpWithMyBank.gov

A line of credit secured by the equity in a consumer’s home. It can be used for home improvements, debt consolidation, and other major purchases. Interest paid on the loan is generally tax deductible (consult a tax advisor to be sure). The funds may be accessed by writing checks against the line of credit or by getting a cash advance.

When a reporting entity holds an originated or purchased loan for which it has the intent and ability to hold for the foreseeable future or to maturity or payoff, the loan should be classified as held-for-investment. Loans held for investment are reported on the balance sheet at their amortized cost basis.

When a reporting entity originates or purchases a loan with the intent to sell the loan to another entity (e.g., a government sponsored enterprise).

Source: HelpWithMyBank.gov

When a depositor’s checking account balance is inadequate to pay a check presented for payment.

The bank’s process for verifying a customer’s identity.

Source: HelpWithMyBank.gov

A pre-approved loan authorization with a specific borrowing limit based on creditworthiness. A line of credit allows borrowers to obtain a number of loans without re-applying each time as long as the total of borrowed funds does not exceed the credit limit.

Source: HelpWithMyBank.gov

The ratio of the loan principal (amount borrowed) to the appraised value (selling price). For example, on a $100,000 home, with a mortgage loan principal of $80,000, the loan-to-value ratio is 80 percent. The LTV will affect programs available to the borrower; generally, the lower the LTV, the more favorable the program terms offered by lenders.

Nonbank lending that uses innovative financial technology (fintech) to make loans to consumers and small businesses.

Mastercard RPPS optimizes electronic bill payment by connecting banks to billers. It offers a single, reliable connection for electronic payment providers to help with fast & secure consumer bill payments.

Mastercard’s offering in the real-time personal payments arena. Senders can immediately make “push payments” to bank accounts, mobile wallets, prepaid debit cards, or targeted cash-out locations. The sender can initiate a Mastercard Send transaction with just the recipient’s debit card number.

Source: HelpWithMyBank.gov

A savings account that offers a higher rate of interest in exchange for larger than normal deposits. Insured by the FDIC, these accounts have limits on the number of transactions allowed and may require higher balances to receive the higher rate of interest.

FinWise Bank’s educational platform that supports greater Financial Wisdom.

Net Interest Margin

Single-window payment platform through which companies can execute all their payments. Payment hubs increase fund control and visibility, reduce the risk associated with numerous fragmented payment processes, and improve overall operating efficiency.

A device, system, or software used for accepting payments.

Source: HelpWithMyBank.gov

A penalty imposed on a borrower for repaying the loan before its due date. (In the case of a mortgage, this applies when there is not a prepayment clause in the mortgage note to offset the penalty).

A series of numbers directing data to a financial institution.

A deposit account with a potential to earn interest.

Source: SBA.gov

The U.S. Small Business Administration (SBA) helps Americans start, build, and grow businesses. SBA was created in 1953 as an independent agency of the federal government to aid, counsel, assist, and protect the interests of small business concerns, preserve free competitive enterprise, and maintain and strengthen the overall economy of our nation.

Small-business loans issued by a private lender and partially backed by the U.S. Small Business Administration.

Small to medium-sized businesses.

Strategic platforms are third-party technology companies the bank partners with to develop new products and services.

Lending predominately done through fintech platforms that connect borrowers with lenders. Sometimes referred to as marketplace lending.

Tangible Book Value

A real-time payments platform that all federally insured U.S. depository institutions are eligible to use for payments innovation. All RTP payments are processed by The Clearing House. When you pay your utility bill for the month using RTP, your bank sends message to network which includes the details of the payment. The Clearing House then processes the message and routes it to utility company’s bank, completing the payment.

Source: HelpWithMyBank.gov

The Truth in Lending Act is a federal law that requires lenders to provide standardized information so that borrowers can compare loan terms. In general, lenders must provide information on what credit will cost the borrowers, when charges will be imposed, and what the borrower’s rights are as a consumer.

Source: FDIC.gov

A person or household without a checking or savings account at a financial institution.

A type of Original Credit Transaction (OCT) that allows fast and secure payment transfers to customers using their card details. Unlike with other payment methods, where it can typically take up to 24 hours for the funds to be transferred to the customer, Visa Direct transactions normally complete near-instantly.