Fintech Terms Glossary: Fintech Terms in 2024
A
Algorithmic Trading
Algorithmic trading, also known as algo-trading, is the use of computer algorithms to automatically execute large volumes of trades based on predefined rules and strategies.
Alternative Lending
Alternative lending refers to the practice of providing loans or financing to individuals and businesses through non-traditional financial channels, such as online platforms or peer-to-peer lending.
Aml
AML, short for Anti-Money Laundering, refers to a set of regulations and procedures aimed at preventing the illegal generation of income by disguising its true origin.
Anti-Money Laundering (Aml)
Anti-Money Laundering (AML) refers to a set of regulations and procedures aimed at preventing the illegal generation of income by disguising its true origin.
Api
API, short for Application Programming Interface, is a set of rules and protocols that allows different software applications to communicate and interact with each other.
Api Economy
API economy refers to the growing trend of businesses and industries leveraging APIs to enable seamless integration and interconnectivity between different systems, applications, and services.
Api Economy In Banking
API economy in banking refers to the growing trend of banks and financial institutions leveraging APIs to enable open banking, facilitate integration with third-party services, and provide improved customer experiences.
Api Integration
API integration is the process of connecting different software systems or applications through APIs, allowing them to share and exchange data in a seamless and integrated manner.
Application Programming Interface (Api)
An Application Programming Interface (API) is a set of rules and protocols that allows software applications to communicate and interact with each other.
Artificial Intelligence
Artificial Intelligence (AI) refers to the simulation of human intelligence in machines.
Artificial Intelligence (Ai)
Artificial Intelligence (AI) refers to the simulation of human intelligence in machines.
Artificial Intelligence In Fintech
Artificial intelligence in fintech refers to the application of AI technologies and techniques to improve and optimize various processes and aspects of the financial services industry.
Artificial Neural Network
An artificial neural network is a computational model inspired by the biological neural networks that make up the human brain.
B
Big Data
Big Data refers to extremely large and complex sets of data that cannot be easily managed, processed, or analyzed using traditional methods.
Biometric Authentication
Biometric authentication uses unique physical or behavioral traits, such as fingerprints or facial recognition, to verify an individual's identity.
Biometrics
Biometrics refers to the unique physical and behavioral characteristics of a person, such as fingerprints, iris patterns, and voice.
Bitcoin
Bitcoin is the first and most well-known cryptocurrency, created in 2009 by an anonymous person or group of people using the name Satoshi Nakamoto.
Blockchain
Blockchain is a decentralized digital ledger that records transactions across multiple computers.
Blockchain Technology In Finance
Blockchain technology in finance refers to the use of distributed ledger technology to enable secure, transparent, and efficient financial transactions and processes, such as payment settlements or supply chain finance.
Business-To-Business (B2B)
Business-to-Business (B2B) refers to transactions or interactions between businesses, such as selling products, services, or information to other businesses.
Business-To-Consumer (B2C)
Business-to-Consumer (B2C) refers to transactions or interactions between businesses and individual consumers, involving the sale of products, services, or information.
C
Challenger Banks
Challenger banks are non-traditional, innovative banks that often operate exclusively online or through mobile apps.
Chatbot
A chatbot is a computer program that uses artificial intelligence to simulate conversations with human users, typically through messaging platforms or voice assistants.
Chatbot In Banking
Chatbots in banking are AI-powered virtual assistants that provide automated customer support, answer queries, and perform tasks such as balance inquiries or fund transfers in the banking sector.
Cloud Computing
Cloud Computing is the practice of using a network of remote servers hosted on the internet to store, manage, and process data, rather than using a local server or personal computer.
Contactless Payments
Contactless payments allow users to make transactions by waving or tapping their payment devices, such as credit cards or smartphones, near a payment terminal.
Credit Risk
Credit risk refers to the potential risk of default or loss associated with extending credit or lending money to individuals, businesses, or other entities.
Credit Scoring
Credit scoring is the statistical analysis of an individual or business's creditworthiness based on various factors, such as credit history, income, and financial behavior, to assess the risk of lending.
Crowdfunding
Crowdfunding is a method of raising funds from a large number of people, typically via online platforms, to finance projects, ventures, or charitable causes.
Crowdsourcing
Crowdsourcing is the practice of obtaining ideas, services, or content by soliciting contributions from a large group of people, typically via the internet.
Cryptocurrency
Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central bank.
Cryptocurrency Exchange
A cryptocurrency exchange is a digital marketplace where cryptocurrencies can be bought, sold, or exchanged with other digital or traditional currencies.
Cryptography
Cryptography is the practice of secure communication by converting information into an unreadable format using encryption techniques.
Customer Segmentation
Customer segmentation is the process of dividing a customer base into distinct groups based on certain characteristics or behaviors.
Cybersecurity
Cybersecurity is the practice of protecting computers, servers, mobile devices, electronic systems, networks, and data from digital attacks, theft, damage, or unauthorized access.
D
Dark Data
Dark data refers to the vast amount of unstructured and unutilized data that organizations collect but do not analyze or use for decision-making or business insights.
Darknet
The darknet refers to encrypted networks that are part of the internet, but not indexed or accessible through traditional search engines.
Data Analytics
Data analytics refers to the process of examining large sets of data to uncover patterns, trends, and insights.
Data Privacy
Data privacy refers to the protection of an individual's personal information and the right to control how their data is collected, used, and shared.
Data Security
Data security involves protecting digital data from unauthorized access, use, disclosure, disruption, modification, or destruction.
Decentralization
Decentralization refers to the distribution of control and decision-making away from a central authority.
Decentralized Finance (Defi)
Decentralized Finance (DeFi) refers to the use of blockchain and cryptocurrency technologies to recreate traditional financial systems without centralized intermediaries.
Digital Assets
Digital assets refer to any form of digital or virtual asset that has monetary value, including cryptocurrencies, digital securities, and digital representations of physical assets.
Digital Banking
Digital banking refers to the provision of financial services and products through digital channels, such as mobile applications and online platforms.
Digital Identity
Digital identity refers to the online representation of an individual's identity and personal information.
Digital Transformation
Digital transformation refers to the integration and adoption of digital technologies, systems, and processes in an organization to fundamentally change and improve its business operations and customer experience.
Digital Wallet
A digital wallet is a software-based system that securely stores payment information for online and mobile transactions.
E
E-Wallet
An e-wallet, or electronic wallet, is a digital version of a traditional wallet that allows users to store, send, and receive money electronically.
F
Financial Analytics
Financial analytics is the practice of using advanced analytical methods and tools to analyze financial and business data to gain insights, support decision-making, and identify patterns or trends.
Financial Crime
Financial crime refers to illegal activities or misconduct involving financial transactions, such as fraud, money laundering, bribery, or insider trading.
Financial Data Analytics
Financial data analytics involves the analysis of financial information to gain insights, support decision-making, and identify trends or patterns.
Financial Inclusion
Financial inclusion refers to the availability and accessibility of financial services to individuals and businesses, particularly those from underserved or marginalized groups.
Financial Inclusion Initiatives
Financial inclusion initiatives are efforts and programs aimed at expanding access to financial services, products, and education for individuals and communities who are currently underserved by traditional banking systems.
Financial Literacy
Financial literacy refers to the knowledge, skills, and understanding of financial concepts and practices, enabling individuals to make informed decisions and manage their personal finances effectively.
Financial Regulation
Financial regulation refers to the laws, rules, and regulations implemented by governmental and non-governmental bodies to oversee and regulate the financial services industry.
Financial Technology (Fintech)
Financial Technology (FinTech) refers to the use of technology to deliver financial services more efficiently and effectively.
Financial Technology (Fintech) Ecosystem
The fintech ecosystem refers to the interconnected network of organizations, institutions, and technologies that collectively support and drive the development of financial technology solutions and innovations.
Financial Technology Ecosystem
The financial technology ecosystem refers to the interconnected network of startups, incumbents, investors, regulators, and other stakeholders in the fintech industry.
Financial Technology Innovation
Financial technology innovation refers to the development and implementation of new technologies, systems, and solutions in the financial services industry to improve efficiency, accessibility, and customer experience.
Financial Technology Sandbox
A financial technology sandbox is a controlled environment where fintech startups can test their innovative products, services, or business models within a secure and supportive framework.
Fintech
Fintech stands for financial technology, which involves the use of technology to deliver financial services efficiently.
Fraud Detection
Fraud detection refers to the identification and prevention of fraudulent activities through the analysis of patterns, behaviors, or anomalies.
I
Initial Coin Offering (Ico)
An initial coin offering (ICO) is a means of crowdfunding a new cryptocurrency project by selling crypto tokens in exchange for other cryptocurrencies or fiat currencies.
Insurtech
Insurtech combines insurance and technology to improve traditional insurance processes, provide innovative insurance products, and offer an enhanced customer experience.
Internet Of Things
The Internet of Things (IoT) is a network of interconnected devices embedded with sensors, software, and network connectivity, enabling them to collect and exchange data.
Internet Of Things (Iot) In Finance
The Internet of Things (IoT) in finance refers to the use of interconnected devices and sensors to collect and exchange data for financial applications and services.
K
Know Your Customer (Kyc)
Know Your Customer (KYC) is the process businesses follow to verify the identity of their customers and assess potential risks.
Kyc
KYC, short for Know Your Customer, is the process businesses follow to verify the identity of their customers and assess potential risks.
M
Machine Learning
Machine Learning (ML) is a subset of AI that focuses on getting machines to learn from data.
Machine Learning (Ml)
Machine Learning (ML) is a subset of AI that focuses on getting machines to learn from data.
Microfinance
Microfinance refers to the provision of financial products and services to low-income individuals and small businesses who typically lack access to traditional banking services.
Mobile Banking
Mobile banking is a service provided by financial institutions that allows customers to conduct various banking activities through mobile devices, such as smartphones or tablets.
Mobile Payments
Mobile payments refer to the use of mobile devices to make financial transactions, typically using mobile wallets or apps.
N
Natural Language Processing (Nlp)
Natural Language Processing (NLP) is a subfield of AI that focuses on the interaction between computers and human language, enabling computers to understand, interpret, and generate human language.
Neobank
A neobank is a digital-only bank that operates solely online or through mobile apps, often without any physical branches.
Neobanks
Neobanks are digital banks that offer banking services exclusively through digital channels, often without physical branches.
O
Open Api
An Open API is an interface that allows third-party developers to build applications that interact with the services provided by a particular platform or organization.
Open Banking
Open Banking is a system that allows third-party financial service providers to access consumer banking data through APIs (Application Programming Interfaces).
P
Payment Gateway
A payment gateway is a technology that securely authorizes and processes payment transactions between merchants and customers.
Payment Service Provider
A payment service provider is a company that offers various payment processing solutions and services to merchants and businesses.
Payments Processing
Payments processing refers to the handling and facilitation of financial transactions, including payment authorization, settlement, and reconciliation.
Peer-To-Peer Lending
Peer-to-peer lending, also known as P2P lending, is the practice of lending money to individuals or businesses through online platforms that match lenders with borrowers.
Platform-As-A-Service (Paas)
Platform-as-a-Service (PaaS) is a cloud computing model that provides a platform and environment for developers to build, deploy, and manage applications.
Predictive Analytics
Predictive analytics is the practice of using historical data and statistical modeling techniques to forecast future events or outcomes with a certain degree of confidence.
Q
Quantum Computing
Quantum computing is an emerging field that utilizes quantum phenomena, such as superposition and entanglement, to perform computations more efficiently than classical computers.
R
Regtech
Regtech, or regulatory technology, refers to the use of technology to facilitate regulatory compliance in the financial industry.
Regulatory Compliance
Regulatory compliance refers to the adherence of laws, regulations, guidelines, and specifications relevant to a specific industry or sector.
Regulatory Compliance Management
Regulatory compliance management involves the development, implementation, and monitoring of processes to ensure compliance with applicable regulations.
Regulatory Compliance Software
Regulatory compliance software helps organizations automate and streamline their compliance processes, ensuring adherence to applicable regulations.
Regulatory Compliance Technology
Regulatory compliance technology refers to the use of technology to streamline and automate compliance-related processes, ensuring businesses meet regulatory requirements.
Regulatory Compliance Technology (Regtech)
Regulatory compliance technology (RegTech) refers to software solutions and platforms specifically designed to help organizations automate and streamline their regulatory compliance processes.
Regulatory Framework
Regulatory framework refers to the structure and set of rules, regulations, and guidelines imposed by regulatory bodies to control and govern specific industries or sectors.
Regulatory Reporting
Regulatory reporting refers to the process of providing regulatory bodies with relevant and accurate financial and non-financial information to ensure compliance with reporting requirements.
Regulatory Sandbox
A regulatory sandbox is a controlled environment where fintech companies can test innovative products, services, and business models under the supervision of regulators.
Regulatory Sandboxes In Fintech
Regulatory sandboxes in fintech are controlled environments or programs that allow fintech startups and innovators to test and validate their products and services under relaxed regulatory conditions.
Regulatory Technology
Regulatory technology, or Regtech, refers to the use of technology to facilitate regulatory compliance in the financial industry.
Regulatory Technology (Regtech)
Regulatory Technology (RegTech) refers to the use of technology to help businesses comply with regulations more efficiently and effectively.
Regulatory Technology Innovation
Regulatory technology innovation refers to the development and application of new technologies and solutions specifically aimed at streamlining and improving regulatory compliance processes.
Regulatory Technology Solutions
Regulatory technology solutions are software tools and platforms designed to assist financial institutions in achieving regulatory compliance.
Risk Assessment
Risk assessment is the process of identifying, analyzing, and evaluating potential risks and vulnerabilities to determine their likelihood and potential impact on an organization or project.
Risk Management
Risk management is the process of identifying, assessing, and mitigating potential risks and uncertainties that could impact an organization's objectives or projects.
Robo-Advisor
A robo-advisor is a digital platform that uses algorithms to provide automated and algorithm-driven financial planning and investment services.
Robo-Underwriting
Robo-underwriting is the use of automated algorithms and data analysis to assess and underwrite insurance policies without human intervention.
Robotic Process Automation
Robotic Process Automation (RPA) involves the use of software robots to automate repetitive and rule-based tasks.
Robotic Process Automation (Rpa)
Robotic process automation (RPA) involves the use of software robots to automate repetitive and rule-based tasks or processes, typically in back-office operations.
S
Smart Cities And Fintech
The intersection of smart cities and fintech refers to the use of technology, digital infrastructure, and financial solutions to improve the quality of life, efficiency, and sustainability of urban areas.
Smart Contract
A smart contract is a self-executing contract with the terms of the agreement directly written into code.
Smart Contracts
Smart contracts are self-executing contracts with the terms of the agreement directly written into lines of code.