Glossary

The vocabulary of automated lending

Short, plain-language definitions of the terms that come up when a manual process becomes a workflow. Written for the people who have to sign off on the result, not only the ones who build it.

ACH
The United States batch network for direct deposits and direct debits between bank accounts.
Adverse media screening
Searching public reporting for negative coverage of an applicant that formal lists would not show.
AI scoring
Using a trained model to estimate the risk of an application from the data already gathered about it.
AML (Anti-Money Laundering)
The obligations that require a business to detect, prevent, and report the movement of criminal funds.
Audit trail
An immutable record of who did what, when, and on what basis, kept alongside the case itself.
Electronic signature
A legally recognised way to sign a document online, with an audit trail proving who signed and when.
KYC (Know Your Customer)
The process of establishing that a customer is who they claim to be, and recording the evidence for it.
Loan origination
Everything between an application arriving and money leaving: verification, decision, contract, and disbursement.
Loan servicing
Managing a loan after disbursement: collections, restructuring, arrears, statements, and closure.
Open banking
A regulated way for a customer to grant a third party read access to their bank account data.
PEP screening
Identifying politically exposed persons, who require enhanced due diligence rather than automatic refusal.
PSD2
The EU payment services directive that obliges banks to open account data and payment initiation to licensed third parties.
Sanctions screening
Checking a person or company against official lists of parties that a business is prohibited from dealing with.
SEPA Direct Debit
The euro-area scheme that lets a creditor pull an agreed payment from a debtor's account under a signed mandate.
Underwriting
Assessing whether to take on a risk, on what terms, and recording why that conclusion was reached.

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The vocabulary of automated lending

ACH

Adverse media screening

AI scoring

AML (Anti-Money Laundering)

Audit trail

Electronic signature

KYC (Know Your Customer)

Loan origination

Loan servicing

Open banking

PEP screening

PSD2

Sanctions screening

SEPA Direct Debit

Underwriting

Keep reading

System modules

Integrations

Guides

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