Instantor's FinTech Glossary

Most common terms used on Instantor's website and documentation.

Credit risk is an undeniably complex field and to help you understand some of the terms used in our website, blog and in this knowledgebase we have created a glossary. We have an AI/ML Glossary too, you can find it here.


Instantor's FinTech Glossary


Account Information Service Providers (AISPs) are licensed companies authorised by the end customer to access their bank information. The AISPs then provide other parties with this information, such as credit companies. Instantor is an AISP as we aggregate end-users' data - with the end user's consent - in order to provide information to our customers.


Anti-money laundering refers to a set of regulations used in the financial industry to prevent the disguising of illegally obtained funds as legitimate income. This is important since banks and financial institutions are required by law to only accept legitimate money. Instantor contributes to combatting AML by detecting unusual and large amounts of money transaction when aggregating data from the end-user - with their consent. If such transaction is detected, Instantor will flag this for the client's awareness.


An API, or Application Programming Interface, is a set of programming codes that help different software platforms to build upon each other and communicate, by sending instructions and querying data. An API can mean different things in different contexts but usually, we talk about HTTP APIs. These are the means for computer applications to communicate with one another.

The use of APIs is particularly fundamental to the implementation of open banking, where the use of an open API enables third-party developers to build services around the financial institutions.

Data Aggregation

Refers to a process of collecting information from bank customers' accounts, with their consent. Instantor is specialised in data aggregation and in creating reports (JSON and PDF) from transactional data to help our customers to make faster and more accurate credit risk decisions.


This is the process of encoding data - such as names and numbers - so that they can’t be seen by unwanted parties. By using algorithms, this data is turned into codes. A key is required in order to turn the code back into useful data. At Instantor, all the reports and data sent to the client are encrypted for security reasons.


FinTech stands for Financial Technology and refers to new tech innovation offered by challengers within the financial market, often challenging traditional methods of delivering financial services.


GDPR stands for the General Data Protection Regulation and is a set of EU regulations aiming to control data protection and privacy for all individuals within the European Union and the European Economic Area. The export of personal data outside the EU and EEA areas are also addressed.

Identity verification

Refers to the identification of individuals done by comparing the input from end-user with the data aggregated from the bank. Instantor provides our clients with reliable, fast and fully digitalised identification details.

Instantor Request Id

Instantor creates a report every time an end-user logs-in - whether successfully or not. The Instantor request ID is a unique code to identify a login. This tool is incredibly useful when investigating issues as has as it helps our data team to find that specific error.


Stands for JavaScript object notation and is a popular open-standard file format that represents data of any kind. Instantor uses JSON and XML format in the report that is sent to the client.


The term Know Your Customer (KYC) is a customer identification process where a customer’s identity, financial status and address are verified. The idea is that by knowing your customers – verifying identities, making sure they’re real, confirming they’re not on any prohibited lists and assessing their risk factors — can keep money laundering, terrorist financing and more run-of-the-mill fraud schemes at bay. Most KYC procedures now run online with optimised online KYC registration processes.

Machine Learning

Machine learning algorithms use programming and other computational methods to learn information directly from data. ML is a way to train an algorithm to identify and learn patterns in the information and then progressively improve their performance on a specific task. ML models are built without relying on a predetermined equation as a model, as more data points are provided, the algorithms adapt to improve performance. Natural patterns within data are identified to provide insight and enhance predictive capabilities.


Onboarding is the process of integrating customers into a new product, service or program. This process can vary between companies, but the general concept is to get customers up and running. At Instantor, onboarding means the whole integration process – counting from the moment a customer is interested in using our service all the way to when Instantor’s service is operating in their daily banking activity.

Open Banking 

This is a term in financial technology that refers to the transparency and access to banking data by third parties through an open API. Thanks to open banking, AISP companies such as Instantor can access data of bank customers.


A Payment Initiation Service Provider is an online service that enables retail businesses to accept a variety of electronic payment methods. This means they are able to withdraw the money straight from your account if you’ve given your consent.

Instantor does not act as a PISP since there are no payments made via our services. We are instead specialised in data aggregation of bank accounts in order to improve credit risk management from financial institutions.


PSD2, which stands for the 2nd Payment Services Directive, is an EU directive administered by the European Commission. It aims to regulate payment services and payment service providers throughout the EU. Instantor was approved in September 2018, by the FSA, to operate as an Account Information Service Provider under PSD2.


Single Sign-On is a method used to authenticate users so they are able to access different applications at the same time while using only one login credential. Instantor connects end-users to hundreds of banks in various countries. Different banks have various ways to authenticate end-user and single sing-on one of them.

Transaction history

Summary of all past bank transactions that the account holder had until the present moment. At Instantor we use transactional history as a source to improve the accuracy of credit risk calculations.

Transactional data 

Transactional data refers to data which is a result of financial data aggregation activities. This type of data can help you get a deeper understanding of credit risk management.  


Stands for extensible markup language and it refers to a markup language and format that has been widely used in the programming context. Just like JSON, the XML is also one format of Instantor's reports. XML is however more difficult to be read than JSON. However, we no longer offer XML to new clients.