FinTech banking terminology.

.

.BANK

.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.

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2

2FA: Two-Factor Authentication

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.

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A

Accrued Interest

Source: HelpWithMyBank.gov

Interest that has been earned but not yet paid.

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ACH: Automated Clearing House

Source: HelpWithMyBank.gov

A computerized facility used by member depository institutions to electronically combine, sort, and distribute inter-bank credits and debits. ACHs process electronic transfers of government securities and provided customer services, such as direct deposit of customers’ salaries and government benefit payments (i.e., social security, welfare, and veterans’ entitlements), and preauthorized transfers.

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Adverse Action Notice

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.

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API: Application Programming Interface

An application that allows two or more applications to exchange data.

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APR: Annual Percentage Rate

Source: HelpWithMyBank.gov

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

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APY: Annual Percentage Yield

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.

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ATM: Automated Teller Machine

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.

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B

B2B: Business to Business

Businesses selling goods or services to another business.

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Bad Actors

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

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Beneficiary

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.

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C

CD: Certificate of Deposit

Source: HelpWithMyBank.gov

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

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Checking Account

Source: HelpWithMyBank.gov

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

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Credit Limit

Source: HelpWithMyBank.gov

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

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E

E-Banking

Transactions performed electronically, often using internet or mobile banking.

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E-Payment

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

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ECOA: Equal Credit Opportunity Act

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.

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EFT: Electronic Funds Transfer

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.)

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F

FDIC Insured: Federal Deposit Insurance Corporation

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.

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FHA: Federal Housing Administration

Source: FHA.gov

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

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FICO: Fair Isaac Company

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).

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Fintech: Financial Technology

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

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H

HELOC: Home Equity Line of Credit

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.

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I

Insufficient Funds

Source: HelpWithMyBank.gov

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

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K

KYC: Know Your Customer

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

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L

Line of Credit

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.

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LTV: Loan-to-Value

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.

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M

Money Market Deposit Account

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.

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MoneyWise

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

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P

POS: Point of Sale

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

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Prepayment Penalty

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).

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R

Routing Number

A series of numbers directing data to a financial institution.

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S

Savings Account

A deposit account with a potential to earn interest.

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SBA: Small Business Association

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.

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Strategic Platform

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

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T

TILA: Truth in Lending Act

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.

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U

Unbanked

Source: FDIC.gov

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

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W

Wire Transfer

Source: HelpWithMyBank.gov

A transfer of funds from one point to another by wire or network such the Federal Reserve Wire Network (also known as FedWire).

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