To properly utilize the Core Banking Services API, it is essential to understand the key terminologies used in the system. This ensures that users can effectively interact with the API and implement banking services accurately.Savings Product#
A savings product is a predefined set of specifications used to create savings accounts. In the core banking system, a savings product defines the characteristics and operational rules of a savings account. These properties include:Minimum balance – The lowest amount that must be maintained in the account.
Opening balance – The initial deposit required to activate the account.
Interest rate – The percentage of interest earned on the account balance over time.
NUBAN account prefix – A unique bank-specific prefix used in generating account numbers.
Current Account – Typically used for frequent transactions and business operations.
Savings Account – Designed for personal savings, often earning interest.
Corporate Account – A specialized account type used by businesses and organizations.
Client#
A client represents a customer of a financial institution within the core banking system. A client can be an individual (such as a person opening a personal savings account) or an entity (such as a company opening a corporate account).Characteristics of a Client:#
A client may hold multiple accounts.
A client’s details are stored securely within the banking system.
Client verification is mandatory before account creation (as part of KYC regulations).
Account#
An account represents a client’s financial record within the banking system. It enables the client to perform financial transactions such as deposits, withdrawals, transfers, and bill payments.Key Features of an Account:#
Each account is uniquely identified in the system.
The Central Bank of Nigeria (CBN) mandates that every savings account should have a NUBAN (Nigeria Uniform Bank Account Number), which is a unique 10-digit number used to identify accounts across banks.
Clients can have different types of accounts based on their financial needs (e.g., savings, current, fixed deposit).
Account Operations:#
Deposits – Adding funds to an account.
Withdrawals – Removing funds from an account.
Transfers – Moving money between accounts within the same bank or across different banks.
Payments – Using account funds to pay bills, services, or loans.
Know Your Customer (KYC)#
Know Your Customer (KYC) is a regulatory requirement designed to combat financial fraud, money laundering, and terrorist financing. The CBN requires all financial institutions to verify and maintain adequate information about their clients before allowing full access to banking services.Means of identification – Official documents such as a National ID, Passport, or Driver’s License.
Residential address – Verified using utility bills or other proof of residence.
Occupation and employment details – To assess financial activity legitimacy.
Marital status – Captured for record purposes.
Source of income – To evaluate financial transactions and risk levels.
Modified at 2025-04-03 19:53:21
