Artificial Intelligence, AI
Also known as machine learning, though many consider the two to be different. AI at its most basic is the science of getting computers to act in a way that humans would consider smart, without being explicitly programmed. Machine Learning is the modern application of AI that gives machines access to data, and the machines then learn for themselves.
Anti-money laundering, AML
AML refers to all of the laws and regulations that require financial institutions to proactively monitor their clients, to prevent money laundering and corruption.
Bureau van Dijk, BvD
BvD is a major publisher of business information which specialises in private company data combined with software for searching and analysing companies. It is a Moody’s Analytics company.
Compliance and Risk
Compliance is the company department that makes sure a business is doing all that it is required to do by regulations and laws, while Risk departments cover risks involved in strategic planning
Critical Identifier, CI
A CI is a National Security of Social Security number, driver’s license number, medical record or financial record (credit/debit cards included) that a company uses to validate a customer or client’s identity.
Due Diligence, DD
DD is a comprehensive appraisal of a business or individual made before accepting a client, buying a business, or signing a contract to provide or receive services. The appraisal seeks to establish a company’s or individual’s integrity, credibility and ability to meet terms, as well as in some cases to confirm its assets and liabilities and evaluate its commercial potential.
Entity reference data
Is the information commonly used to describe firm’s clients or counterparties. This can include the entity legal name, the location/address, the business description, products and services, or billing and contract information. It may include a code that uniquely identifies entities and their legal relationships with parent companies and subsidiaries, while tracking changes in these relationships over time.
Fitch Ratings, based in the US, is a global, credit-ratings agency.
Graphical database technology
Technology that allows a business to identify relationships between businesses, accounts, individuals, and associated organisations, such as investors or advisers.
Know your client, KYC
Sometimes used interchangeably with Customer Due Diligence or CDD, KYC is the business process that identifies, and then verifies the identity of its clients. KYC can also refer to the anti-money laundering regulations that apply to financial institutions and other businesses.
Companies that offer to solve problems with computer systems or methods within businesses that fall short of current needs.
Computer systems or methods that have become inefficient, out of date, or have ceased to work, and that businesses themselves struggle to modify for modern use.
Legal Entity Identifier
The Legal Entity Identifier (LEI) is a 20-digit, alpha-numeric code used to identify businesses or individuals participating in financial transactions. Companies need them to fulfil their reporting obligations under financial regulations and directives, including the Markets in Financial Instruments Directive (MiFID), as of January 2018. Companies also need LEIs to match and aggregate data for transparency and regulatory reasons.
Linked open data
Linked Data is a set of principles that allow sharing of machine-readable inter-linked data on the Internet. Not all data is freely available/open for anyone to use and share, so Open Data are data that can be freely used and distributed by anyone, subject only to the requirement to attribute and identify the source and to continue to share. Linked Open Data takes Open Data and links it, using both linked and open sources.
Matching rules are tools used to find duplicate records or businesses or people: A matching rule (a computer program, a line of code) compares a new record’s match keys against those for existing records. Then, for records that share the same match keys, the matching rule uses matching algorithms to compare fields and determine how closely the fields, and ultimately the records, match. The match key is a data point/piece of information that once found in two records triggers the algorithm to check if any other pieces of information are the same.
Moody’s Investors Service is a global, credit ratings agency based in the US.
The process that an organisation goes through with a customer to allow the two to work together, to provide and receive services. It includes supply and review of documents, and following several steps to adhere to Know Your Client or KYC regulation, and other Due Diligence reviews.
Payment processing cycle
The cycle that begins with a payment, and proceeds to supply of goods and/or services, through to invoicing and payment.
The correction of incorrect information, such as full name or address or account number, in payment transactions.
Proof of regulation document
A screen printout from a regulator’s website or written confirmation from a regulator certifying that a business is registered with and regulated by a particular regulator.
In financial institutions, Risk usually describes factors in a firm’s operations, such as technical and non-technical aspects of the business, financial policies, geopolitical threats to businesses, supplier risk and other issues that could affect the reputation and or performance of the company. Risk departments are responsible for identifying and managing Risk.
Secure support channel
Sometimes called simply a support channel, this is a series of steps provided by a security support provider (SSP) to certify or authenticate private communication, through encryption.
A separate unit within an organisation that contains data that are inaccessible to other parts of the bank, whose work would be made simpler (either more accurate with less work, or less duplicative) if other departments could tap into the silo. Banks are often frustrated to learn that the information they need is contained within another department of their own organisation, a silo, but they cannot gain access to it.
Standing Settlement Instructions SSIs
Often mistakenly referred to as “Standard Settlement Instructions,” Standing Settlement Instructions are established terms upon which two parties have agreed to trade. SSIs improve efficiency by creating consistent settlement instructions that counterparties can use repeatedly without having to re-fill forms or provide duplicate information.
The Society for Worldwide Interbank Financial Telecommunication is a network that enables financial institutions to reliably send and receive secure and standardised information about financial transactions.
Wholesale corporate banking
Wholesale banking involves banks providing services to large companies and organisations — such as currency conversion and hedging, management of large transactions, business lending. It is different from retail banking, which applies to individuals needing simpler or smaller services such as personal current and savings accounts.