Describes the business processes of financial service providers “behind” the frontand the middle-office. As back-office processes like opening accounts or processing transactions occur repeatedly along a defined and reliable workflow, the goal is to achieve high efficiencies through scale and standardization.
To automate back-office operations, core banking (or core insurance) systems have emerged since the 1960s and since the 2000s the area has also seen many attempts to outsource tasks to third-party providers, which have the ability to achieve higher scale than individual banks (or insurances). Among the sourcing models are in particular transaction banks.
More Term Definitions
- Authentication
- Authorization
- Automated Teller Machine (ATM)
- Aave
- Account Information Service Provider (AISP)
