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Glossary

The federated finance glossary

28 terms in 6 categories, in plain English. One term a day is featured on this page.

Networks 5 terms

Operating layerThe one consistent layer through which an organisation uses its financial capabilities, providers and participants.Closed networkA permissioned financial network where only approved institutions and participants take part.ParticipantAny organisation or person that takes part in a financial network, such as a merchant, bank, member or department.Platform financeFinancial services offered across every side of a platform: buyers, sellers, merchants, contractors and partners.CapabilityA financial function you can use, such as accounts, payments, payouts, FX, settlement or reconciliation.

Money movement 5 terms

PaymentMoney sent from one party to another, tracked from request to completion.PayoutMoney disbursed to individuals, businesses, members or participants, singly, in bulk or on a schedule.Split paymentOne incoming payment divided automatically between several destinations, such as seller, platform and tax.CollectionReceiving money owed to you, such as invoices, fees, rents or contributions, across channels and providers.InstalmentsA purchase paid in parts over time, offered at the point of sale through a connected lender.

Settlement and reconciliation 5 terms

SettlementCoordinating what participants owe each other so that final positions are agreed and paid.NettingOffsetting what participants owe each other so only the net amounts move.Gross and netGross is the total of all obligations; net is what remains to be paid after offsetting.ReconciliationComparing expected financial activity with the records of providers and surfacing anything that does not match.ExceptionA record that does not match and needs to be investigated and resolved.

Providers and rails 5 terms

ProviderA bank, payment provider, lender, card issuer or specialist service connected to a network.Provider-agnosticNot tied to any single bank or provider: capabilities work the same whichever providers are connected.FailoverMoving activity to another connected provider automatically when one becomes unavailable.Open bankingRegulated ways of sharing account information and initiating payments with a customer's permission.Payment railA scheme or network over which payments travel, such as Faster Payments, SEPA, Bacs or card networks.

Governance and records 4 terms

PermissionedOnly organisations and people you have approved can take part, each with defined permissions.PolicyThe operating rules, approvals and financial controls a network applies to its activity.TraceabilityA clear record of what happened, when and what followed, for every important financial operation.AlertA notice that something needs attention, such as a provider issue, a settlement review or an exception.

Building and operating 4 terms

SandboxA safe test environment with simulated data in which nothing real moves.JurisdictionA country or region whose currency, rules and available providers shape how a network operates there.FinancialOSOne environment for operating collections, payouts, treasury, settlement, reconciliation and reporting.Benefits runA scheduled disbursement of public benefits to recipients, prepared, approved and then paid.