Identity & Risk Glossary

AA Consent Object

Learn what an AA Consent Object is, how it works, and why it’s central to user privacy and data governance in the Account Aggregator model.

ACH Payments

Discover how ACH payments work through the Automated Clearing House system, offering a cost-effective way to process electronic money transfers.

AML Transaction Monitoring

Explore the essentials of transaction monitoring in AML. Learn how effective AML transaction monitoring can combat money laundering and financial crime.

API Banking

What is API Banking? API Banking refers to the use of Application Programming Interfaces (APIs) by banks to facilitate the seamless integration of their financial services with other digital platforms and applications. By opening up their systems through APIs, banks enable third-party developers, fintech companies, and businesses to access and utilize their banking services, such […]

API Integration

Discover how API integration connects applications seamlessly. Learn about APIs, their role in interface development, and the best platforms for your needs.

Account Aggregators (AA)

Learn how account aggregators are transforming financial data management, offering convenience, insights, and enhanced control over your finances.

Account Reconciliation

Dive into the importance of account reconciliation for business finance. Learn how regular reconciliations ensure accurate records, prevent fraud, and improve decision-making.

Account Takeover

What is Account Takeover? Account Takeover (ATO) is a type of cyberattack where a malicious actor gains unauthorized access to a victim’s account. This usually occurs through techniques such as phishing, credential stuffing, or social engineering, allowing the attacker to assume control over the account and perform fraudulent activities, including making unauthorized transactions, stealing personal […]

Advanced Electronic Signature

An Advanced Electronic Signature is a type of electronic signature that meets specific legal and security requirements to ensure the authenticity, integrity, and non-repudiation of a signed document.

Anti-Money Laundering (AML)

Anti-Money Laundering Definition Anti-Money Laundering (AML) refers to a set of laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. In the fintech sector, AML measures are critical for identifying, investigating, and reporting suspicious activities that may indicate money laundering or terrorist financing. Effective AML practices help maintain […]

Automated Permanent Academic Account Registry(APAAR)

Discover how the Automated Permanent Academic Account Registry (APAAR) ensures secure, verifiable academic records while reducing fraud and streamlining verification processes.

BKYC

What is BKYC? BKYC stands for Business Know Your Customer, a specialized process used by financial institutions and other organizations to verify the identity of business entities rather than individual customers. This process is crucial in ensuring that companies engage with legitimate businesses and comply with regulatory requirements aimed at preventing fraud, money laundering, and […]

Background Screening

What is Background Screening? Background screening, also known as a background check, is the process of verifying an individual’s personal, professional, and criminal history. Employers, landlords, and other entities conduct background screenings to ensure that individuals meet specific criteria and to mitigate risks associated with hiring or engaging with individuals. Components of Background Screening Importance […]

Bank Account Validation

What is Bank Account Validation? Bank account validation is the process of verifying that a bank account number provided by an individual or business is valid, active, and matches the corresponding account holder’s information. This process is crucial in ensuring the accuracy of financial transactions, preventing fraud, and reducing errors in payment processing. Bank account […]

Bank Regulation

Understanding Bank Regulation Bank regulation refers to the framework of laws, rules, and guidelines established by regulatory authorities to oversee and govern the operations of banks and financial institutions. The primary objectives of bank regulation are to ensure the stability and integrity of the financial system, protect depositors, and prevent financial crimes. Key Elements of […]

Banking-as-a-Service

See how BaaS is disrupting traditional banking while creating opportunities for fintech businesses to partner with established financial institutions.

Cash Flow Lending

Discover the fundamentals of cash flow lending, key eligibility criteria, and how fintech lenders assess borrower risk using future income.

Central Grievance Redressal System

Understand the purpose, features, and regulatory importance of the Central Grievance Redressal System in India’s financial and fintech sectors.

Co-Lending Platform

Learn how co-lending platforms work, their benefits for lenders and borrowers, and the technology powering this collaborative lending model.

Compliance as a Service (CaaS)

Explore the benefits, workings, and common use cases of Compliance as a Service (CaaS) for industries like healthcare, finance, and e-commerce

Credit Analytics

Learn why credit analytics is essential for building financial stability, enabling data-driven strategies, and minimizing credit risks effectively.

Credit Card Fraud Detection

Explore credit card fraud detection methods and best practices to safeguard your finances. Learn how detection works and the technologies that protect you.

Credit Risk Assessment

Learn how to assess credit risk effectively, minimize financial losses, and enhance decision-making with expert insights. Get a clear understanding of key factors and discover how assessments impact lending decisions.

Customer Due Diligence

Understanding Customer Due Diligence (CDD) Customer Due Diligence (CDD) is a process used by financial institutions and other regulated entities to verify the identity of their customers, assess potential risks associated with the customer, and ensure that they are not involved in money laundering, terrorism financing, or other illicit activities. CDD is a critical component […]

Customer-Friendly Consent Flow

Learn how customer-friendly consent flows simplify data sharing in fintech, improve user trust, and ensure compliance with regulations like AA and GDPR.

DEPA

Understand how DEPA enhances user control, data privacy, and business innovation through its consent-based model. Explore the principles and benefits of DEPA.

Data Breach

Understanding Data Breach A Data Breach in the fintech sector is an incident where sensitive, confidential, or protected data is accessed, disclosed, or used by unauthorised individuals. This can involve personal information, financial data, intellectual property, or other confidential information. Data breaches can result in significant financial loss, reputational damage, and legal consequences for fintech […]

Data Privacy

Data Privacy Meaning Data Privacy in the fintech sector refers to the protection and proper handling of sensitive information that fintech companies collect, process, and store. This includes personal data, financial details, transaction histories, and other confidential information. Ensuring data privacy involves implementing policies, practices, and technologies to safeguard this information from unauthorised access, misuse, […]

Decentralized Finance

Understanding Decentralized Finance (DeFi) Decentralized Finance (DeFi) refers to a financial system built on blockchain technology that operates without traditional financial intermediaries such as banks, brokers, or exchanges. DeFi leverages smart contracts and decentralized applications (DApps) to provide financial services in a transparent, secure, and accessible manner. Key Features of Decentralized Finance Advantages of Decentralized […]

Demat account

New to investing? Get a simplified overview of Demat accounts, their benefits, and why they’re crucial for managing your investments efficiently.

Digital Banking

Understanding Digital Banking Digital banking refers to the provision of banking services through digital platforms such as mobile apps, websites, and online banking systems. It enables customers to perform a wide range of banking transactions without visiting a physical branch, offering convenience and efficiency in managing their financial activities. Features of Digital Banking Types of […]

Digital Identity

What is Digital Identity? A digital identity is a collection of electronic data that uniquely identifies an individual, organization, or device in the digital world. It comprises attributes like usernames, passwords, digital certificates, and behavioral patterns. Digital identities are essential for accessing online services, conducting transactions, and verifying identities in a secure and efficient manner. […]

Digital Identity Verification

What is Digital Identity Verification? Digital identity verification is the process of confirming that an individual’s digital identity matches their real-world identity. It involves using various technologies and methods to verify the authenticity of a person’s digital credentials, such as their name, date of birth, government-issued IDs, or biometric data. This process is crucial for […]

Digital Onboarding

What is Digital Onboarding? Digital onboarding is the process of integrating new customers, employees, or users into a company’s system or services using digital platforms and tools. This process involves the electronic collection of information, identity verification, and guidance through the initial setup or registration procedures. Digital onboarding is designed to be seamless, efficient, and […]

Document Fraud

What is Document Fraud? Document fraud refers to the act of creating, altering, or using falsified documents with the intent to deceive or defraud. This type of fraud can involve various types of documents, including identification papers, financial statements, contracts, certificates, and other legal or official documents. The goal of document fraud is often to […]

Due Diligence

Due Diligence Meaning Due Diligence in the fintech sector refers to the comprehensive process of investigating and evaluating a financial technology company or potential investment. This evaluation aims to assess the company’s financial health, legal standing, operational capabilities, and market potential. Due diligence is crucial in the fintech industry due to its rapid innovation, regulatory […]

Early Warning Signals

Explore the role of Early Warning Signals in risk management. Understand the types of EWS, how they work, and why they’re critical for proactive decision-making in fintech.

Enhanced Due Diligence

Understanding Enhanced Due Diligence (EDD) Enhanced Due Diligence (EDD) is a more rigorous and thorough process of verifying the identity and assessing the risk of higher-risk customers or transactions. EDD goes beyond standard Customer Due Diligence (CDD) to provide a deeper understanding of the customer and mitigate potential risks associated with money laundering, terrorism financing, […]

eKYC

Understanding eKYC Electronic Know Your Customer (eKYC) is a process that allows individuals to complete the identity verification process electronically, without the need for physical documents or in-person verification. This digital method of identity verification has gained significant traction in various industries due to its efficiency and convenience. Definition of eKYC eKYC refers to the […]

eSign

eSign Definition eSign stands for electronic signature, a digital version of a traditional handwritten signature. It is used to sign documents electronically, making the signing process more efficient and secure. eSignatures are legally recognized and widely used in various industries, including finance, healthcare, real estate, and government services. They offer a convenient and fast way […]

Face Identification

What is Face Identification? Face identification is a biometric technology that identifies an individual by analyzing and recognizing their facial features. Unlike face verification, which confirms whether a face matches a specific identity, face identification compares a face against a database of multiple faces to determine the individual’s identity. This technology is widely used in […]

Face Match

What is a Face Match? Face Match is a biometric technology that compares a person’s facial features with a stored database to verify their identity. This technology is widely used in security systems, mobile devices, banking, and other applications where accurate and secure identity verification is essential. How Face Match Works Applications of Face Match […]

Face Verification

What is Face Verification? Face verification is a biometric technology used to confirm a person’s identity by comparing their facial features against a stored template or a reference image, typically from an ID document or a previously captured photo. This technology is commonly used in various applications, including security systems, online banking, and access control, […]

Facial Recognition

What is Facial Recognition? Facial recognition is a biometric technology that identifies or verifies an individual by analyzing and comparing facial features captured in images or video. It uses advanced algorithms to map facial characteristics, such as the distance between the eyes, the shape of the chin, and the contours of the face, to create […]

Facial Recognition Biometrics

What is Facial Recognition Biometrics? Facial recognition biometrics is a technology that uses unique facial features to identify or verify an individual’s identity. As a subset of biometric technology, it relies on the distinct patterns in a person’s facial structure, such as the distance between the eyes, the shape of the cheekbones, and the contour […]

Financial Action Task Force

Explore the Financial Action Task Force (FATF), the global watchdog combating money laundering and terrorist financing, and its vital role in fighting financial crime.

Financial Information Provider (FIP)

Uncover the significance of financial information providers in the financial ecosystem and their impact on market trends and investor confidence.

Financial Information Providers

From real-time updates to data accuracy, discover how financial information providers transform raw data into actionable intelligence for businesses and investors.

Financial Information User

Explore the key users of financial information, their purposes, and the best practices for managing and leveraging financial data to make informed decisions in this comprehensive guide.

First Party Fraud

What is First Party Fraud? First Party Fraud occurs when an individual or business intentionally provides false information or misrepresents themselves to obtain goods, services, or credit without intending to pay for them. Unlike traditional fraud, where a third party is victimized, first party fraud is committed by the actual customer, making it more challenging […]

GST Powered Underwriting

Discover how GST data is revolutionizing underwriting by enhancing accuracy, reducing fraud, and streamlining compliance for insurers and financial institutions.

Ghost Loan Risk

Discover how ghost loans undermine digital lending platforms, the risks they pose, and how fintechs can detect and prevent this growing fraud threat.

IBAN Validation

International Bank Account Number (IBAN) verification is a vital step in banking systems to authenticate the correctness and structure of an IBAN before proceeding with cross-border transactions. An IBAN is a formatted alphanumeric number that uniquely represents an individual bank account worldwide, supporting easy financial transfers. IBAN validation helps reduce the occurrence of mistakes, adheres […]

ID Documents

What is an ID Document? An ID document, short for identification document, is an official document that verifies a person’s identity. These documents typically contain essential personal information such as the holder’s name, photograph, date of birth, and a unique identification number. Governments or authorized institutions issue ID documents to individuals for the purpose of […]

Identity Access Management

What is Identity Access Management? Identity Access Management (IAM) is a framework of policies, processes, and technologies that ensures the right individuals have access to the appropriate resources at the right times. It plays a crucial role in both security and operational efficiency within an organization. IAM involves managing digital identities and controlling user access […]

Identity Authentication

Identity authentication is the process of confirming that a person or organization is who they say they are.

Identity Document Verification

Identity document verification is the process of confirming whether the presented identification documents, such as a national ID card, driver’s license, or passport are authentic.

Identity Fraud

What is Identity Fraud? Identity Fraud is the unlawful use of another person’s personal information—such as their name, social security number, credit card details, or other identifying data—without their consent, typically for financial gain. This can involve activities such as opening new credit accounts, making unauthorized purchases, or obtaining loans in the victim’s name. Identity […]

Identity Proofing

Identity Proofing means the process of verifying the identity of an individual through the collection and evaluation of personal data for identity authentication.

Identity Theft

Identity Theft Meaning Identity Theft is a crime where someone wrongfully obtains and uses another person’s personal data in a way that involves fraud or deception, typically for economic gain. In the fintech sector, identity theft can have severe consequences, compromising the security and trustworthiness of financial transactions and systems. This type of fraud can […]

Identity Theft Protection

What is Identity Theft Protection? Identity theft protection refers to a range of services and strategies designed to safeguard personal information from unauthorized access and misuse. These measures help protect individuals from becoming victims of identity theft, where someone fraudulently uses another person’s personal data—such as their Social Security number, credit card information, or bank […]

Identity as a Service (IDaaS)

What is Identity as a Service? Identity as a Service (IDaaS) is a cloud-based service that provides identity and access management (IAM) solutions to organizations. IDaaS enables businesses to securely manage and verify user identities, control access to applications and data, and enforce security policies across their digital infrastructure. By leveraging IDaaS, organizations can streamline […]

KYB

Understanding KYB: Know Your Business KYB stands for Know Your Business. It is a process used by financial institutions and other entities to verify the legitimacy and identity of businesses they engage with. KYB is similar to Know Your Customer (KYC) but focuses on corporate clients rather than individual customers. Key Components of KYB Importance […]

KYC Check

KYC Check Definition KYC Check stands for “Know Your Customer” check. It is a critical process used by fintech companies and financial institutions to verify the identity of their clients. This process helps prevent fraud, money laundering, and other illegal activities by ensuring that customers are who they claim to be. KYC checks are a […]

Know Your Employee (KYE)

Know Your Employee is the process that an organization uses to verify employees’ identity, background, and credentials.

Loan Service Provider

Understand how loan service providers can help SMEs with working capital, equipment loans, and more, ensuring fast and efficient financing.

Loan Service Providers (LSPs)

Get an in-depth look at how LSPs facilitate digital lending. From tech-driven loan processing to compliance with RBI norms, this guide unpacks everything fintech stakeholders need to know about LSPs.

Mobile KYC

Discover how Mobile KYC is transforming banking with faster onboarding, enhanced security, and regulatory compliance. Learn the process and future trends!

Money Laundering

Understanding Money Laundering Money laundering is a process by which individuals or organisations attempt to conceal the origins of illegally obtained money. This illicit activity involves disguising the proceeds of crime, such as drug trafficking, corruption, or tax evasion, as legitimate funds. By doing so, criminals can integrate their ill-gotten gains into the financial system, […]

Multi-Factor Authentication (MFA)

Understanding Multi-Factor Authentication Multi-Factor Authentication (MFA) is a security mechanism that requires users to provide two or more verification factors to gain access to a resource such as an application, online account, or network. In the fintech sector, MFA is critical for protecting sensitive financial data and ensuring secure transactions. By combining multiple layers of […]

NBFC

Non-Banking Financial Companies (NBFCs) are financial institutions that offer various banking services, such as loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by the government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business, but do not include any institution whose principal business is that of agriculture activity, […]

Neo Banking

Neo banks are transforming how we handle money. Discover the advantages of neo banking over traditional bank services and explore leading neo banks in India.

Online Identity Verification

What is Online Identity Verification? Online identity verification is the process of confirming that an individual’s identity is authentic when accessing online services. This process is essential for ensuring that the person is who they claim to be, helping to prevent fraud and unauthorized access. Online identity verification typically involves the use of personal information, […]

Open banking

Explore open banking: a secure system using APIs to share financial data, enhancing experiences in financial services for businesses and consumers alike.

PCI DSS Compliance

Understand the 12 PCI DSS requirements for compliance and how to implement them. Follow PCI security standards to safeguard payment data and avoid penalties.

Personal Finance Management

Take charge of your finances with this essential guide to personal finance management concepts. Empower your financial decisions with clear, practical insights.

Personally Identifiable Information (PII)

Understanding Personally Identifiable Information (PII) Personally Identifiable Information (PII) in the fintech sector refers to any data that can be used to identify a specific individual. This includes direct identifiers such as names, addresses, and social security numbers, as well as indirect identifiers like date of birth, biometric data, and financial information. PII is critical […]

Politically Exposed Person

Who is a Politically Exposed Person (PEP)? A Politically Exposed Person (PEP) is an individual who holds or has held a prominent public position or function, and as a result, is considered to be at higher risk for potential involvement in bribery, corruption, and other financial crimes. This classification also extends to their immediate family […]

Proprietary Credit Score

about proprietary credit scores, how they work, their benefits, and why businesses are turning to tailored credit assessment methods for better decision-making.

REST API

REST API Definition REST API stands for Representational State Transfer Application Programming Interface. It is a set of rules and conventions for building and interacting with web services. REST APIs allow different software systems to communicate over the internet using standard HTTP methods. In the fintech sector, REST APIs are widely used to enable seamless […]

RESTful API

Discover what RESTful APIs are, how they work, and their critical role in fintech systems for data exchange, identity verification, and payment processing.

RegTech Solutions

Explore RegTech solutions that merge technology with compliance and regulatory needs, enhancing efficiency in monitoring and reporting for the financial industry.

Regulatory Compliance

Understanding Regulatory Compliance Understanding regulatory compliance is essential for businesses to operate within legal frameworks and avoid penalties. This glossary entry provides a comprehensive look into the meaning, importance, and implications of regulatory compliance. What is Regulatory Compliance? Regulatory compliance refers to the adherence to laws, regulations, guidelines, and specifications relevant to an organisation’s business […]

Role-Based Access Control (RBAC)

Discover the importance of Role-Based Access Control (RBAC) in fintech. Understand its benefits, implementation tips, and how it supports regulatory compliance.

SOAP API

Learn what a SOAP API is, how it works, and why it’s still widely used in fintech systems for secure, structured data exchange and regulatory compliance.

Social Engineering Fraud

Explore social engineering scams, including phishing, vishing, and smishing. Learn how criminals trick victims into revealing confidential information and safeguard yourself.

Technology Service Providers

Technology Service Providers simplify IT management, enabling businesses to focus on growth. Discover what TSPs do, their benefits, and how they drive efficiency and innovation.

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Video KYC

Video KYC is the process through which organizations verify the identity of customers remotely through video interaction.

Virtual Accounts

A virtual account is a specialized identifier corresponding to a main bank account on which businesses can simplify their financial dealings without maintaining multiple physical bank accounts. Learn more.

Zero Trust Security

Trust is a security model’s greatest vulnerability. Zero Trust architecture eliminates this risk through continuous verification and strict access controls.