Digital Banking Solutions - Lithic

Overview

Lithic provides the core infrastructure to build modern digital banking experiences, from neobanks to embedded banking products. By combining our ledger offering with card issuing and payment rails to move money, you can offer a complete banking solution to your customers.

Digital banking on Lithic supports both consumer and commercial use cases, with real-time balance tracking, instant card issuance, and flexible funding options. Whether you're building a standalone neobank or embedding card and accounts into your existing product, Lithic's API-first platform provides the foundation you need.

Key Features for Digital Banking

Real-Time Balance Updates

Lithic's ledger processes transactions in real-time, providing instant balance updates across all money movement types:

Flexible Funding Options

Support multiple funding methods to meet customer needs:

Comprehensive Transaction History

Provide customers with detailed transaction records:

Regulatory Compliance

Built-in compliance features for banking products:

Core Capabilities

Account Management

Financial Accounts: At the heart of digital banking is Lithic's financial account system, which provides real-time balance tracking and double-entry accounting:

Account Holders: Create business or individual account holders

Card Issuance

Issue both virtual and physical debit cards to your customers instantly:

Virtual Cards:

Physical Cards:

Card Programs: Configure card programs with specific BIN ranges, digital wallet art, and program-level settings.

Funding & Money Movement

Enable seamless money movement in and out of customer accounts:

Money Movement:

External Bank Accounts:

Book Transfers:

Transaction Controls

Provide customers with powerful spending controls and security:

Authorization Rules:

Real-Time Decisioning:

Digital Wallet Support

Modern payment experiences with digital wallet integration:

Implementation Guide

1. Account Onboarding

Create an account holder and associated financial accounts:

JSON

POST /v1/account_holders
{
  "individual": {
    "first_name": "Jane",
    "last_name": "Doe",
    "email": "jane.doe@example.com",
    "phone_number": "+15555551234",
    "dob": "1990-01-15",
    "address": {
      "address1": "123 Main St",
      "city": "San Francisco",
      "state": "CA",
      "postal_code": "94105",
      "country": "USA"
    }
  },
  "tos_timestamp": "2024-01-15T10:30:00Z",
  "workflow": "KYC_EXEMPT"
}

Response includes the account_holder_token and automatically creates an ISSUING financial account.

2. Retrieve Financial Account

Get the financial account token that was automatically created:

JSON

GET /v1/financial_accounts?account_token={account_holder_token}

This returns the ISSUING financial account token needed for funding operations.

3. Issue Virtual Debit Card

Once the account holder is verified, issue a virtual card:

JSON

POST /v1/cards
{
  "type": "VIRTUAL",
  "account_token": "account_token",
  "state": "OPEN"
}

The card is immediately available for online transactions and digital wallet provisioning.

4. Connect External Bank Account

Enable ACH funding by connecting the customer's external bank account:

JSON

POST /v1/external_bank_accounts
{
  "owner": "Jane Doe",
  "owner_type": "INDIVIDUAL",
  "account_token": "account_holder_token",
  "account_number": "123456789",
  "routing_number": "123456789",
  "type": "CHECKING",
  "country": "USA",
  "currency": "USD",
  "verification_method": "MICRO_DEPOSIT",
  "financial_account_token": "issuing_account_token"
}

Verify the account using micro-deposits or prenote before enabling funding. The financial_account_token is used to fund the micro-deposits for verification.

5. Configure Authorization Rules

Set up spending controls for the customer:

JSON

POST /v2/auth_rules
{
  "account_tokens": ["account_holder_token"],
  "program_level": false,
  "state": "ACTIVE",
  "type": "CONDITIONAL_ACTION",
  "parameters": {
    "conditions": [
      {
        "attribute": "MCC",
        "operation": "IS_ONE_OF",
        "value": ["5813", "7995"]  // Block gambling and betting
      }
    ],
    "action": "BLOCK"
  }
}

6. Fund the Account

Transfer funds from the external bank account via ACH:

JSON

POST /v1/payments
{
  "amount": 50000,
  "external_bank_account_token": "external_bank_account_token",
  "financial_account_token": "issuing_account_token",
  "payment_type": "COLLECTION",
  "method": "ACH_NEXT_DAY",
  "method_attributes": {
    "sec_code": "WEB"
  }
}

Funds will be available based on the ACH settlement schedule (same-day or next-day).

7. Monitor Balances & Transactions

Track account balances in real-time:

JSON

GET /v1/financial_accounts/{financial_account_token}/balances

Response:

JSON

{
  "available_amount": 48500,
  "pending_amount": 1500,
  "total_amount": 50000,
  "currency": "USD",
  "last_transaction_token": "transaction_token",
  "last_transaction_event_token": "event_token"
}

Subscribe to webhooks for real-time balance updates:

Use Cases

Consumer Neobanks: Full-featured digital banking apps with checking accounts, debit cards, and mobile payment capabilities.

Embedded Banking: Add banking features to existing products like payroll platforms, HR systems, or consumer apps.

Commercial Banking: Business checking accounts with expense management, employee cards, and ACH payments.

International Remittances: Multi-currency support with card issuance and ACH funding for cross-border payments.