Core FinTech Concepts
- FinTech: Technology-driven innovation in financial services.
- Digital Banking: Banking services delivered online or via mobile apps.
- Neobank: A digital-only bank without physical branches.
- Challenger Bank: A new bank competing with traditional banks.
- Open Banking: Sharing financial data between institutions via APIs.
- API (Application Programming Interface): A tool for connecting software systems.
- Blockchain: A decentralized ledger technology used in FinTech.
- Cryptocurrency: Digital or virtual currency secured by cryptography.
- Decentralized Finance (DeFi): Financial services built on blockchain.
- RegTech: Technology for regulatory compliance in finance.
Payments and Transactions
- Digital Wallet: A virtual wallet for storing payment information.
- Mobile Payment: Payments made via mobile devices (e.g., Apple Pay).
- Peer-to-Peer (P2P) Payment: Direct payments between individuals.
- Contactless Payment: Payments made without physical contact (e.g., NFC).
- QR Code Payment: Scanning a code to make a payment.
- Cross-Border Payment: Transactions between different countries.
- Real-Time Payment: Instant transfer of funds.
- ACH (Automated Clearing House): Electronic funds transfer system.
- SWIFT: A network for international money transfers.
- POS (Point of Sale): Systems for processing transactions at retail locations.
Lending and Credit
- Peer-to-Peer Lending (P2P Lending): Loans between individuals without banks.
- Crowdfunding: Raising funds from a large number of people.
- Buy Now, Pay Later (BNPL): Short-term financing for purchases.
- Credit Scoring: Assessing a borrower’s creditworthiness.
- Alternative Credit Data: Non-traditional data used for credit scoring.
- Microloan: A small loan for individuals or small businesses.
- Debt Consolidation: Combining multiple debts into one.
- Invoice Financing: Borrowing against unpaid invoices.
- Secured Loan: A loan backed by collateral.
- Unsecured Loan: A loan without collateral.
Investing and Wealth Management
- Robo-Advisor: Automated investment platforms.
- Algorithmic Trading: Using algorithms to execute trades.
- Fractional Shares: Buying a portion of a stock.
- ETF (Exchange-Traded Fund): A basket of securities traded on exchanges.
- Cryptocurrency Exchange: A platform for trading digital assets.
- Tokenization: Converting assets into digital tokens.
- Custody Services: Safeguarding financial assets.
- Portfolio Management: Managing investments to meet financial goals.
- Hedge Fund: High-risk investment funds for wealthy individuals.
- Crowdinvesting: Investing in startups or projects via crowdfunding.
Insurance
- InsurTech: Technology-driven innovation in insurance.
- Digital Insurance: Insurance services delivered online.
- Usage-Based Insurance: Premiums based on usage (e.g., pay-as-you-drive).
- Peer-to-Peer Insurance: Insurance pools created by individuals.
- Claims Automation: Using AI to process insurance claims.
- Parametric Insurance: Payouts based on predefined triggers.
- Microinsurance: Low-cost insurance for low-income individuals.
- Telematics: Using data to assess driving behavior.
- Underwriting: Assessing risk for insurance policies.
- Reinsurance: Insurance for insurance companies.
Regulation and Compliance
- KYC (Know Your Customer): Verifying customer identities.
- AML (Anti-Money Laundering): Preventing illegal financial activities.
- GDPR (General Data Protection Regulation): EU data privacy law.
- PCI DSS (Payment Card Industry Data Security Standard): Security for card payments.
- PSD2 (Payment Services Directive 2): EU regulation for payment services.
- MiFID II (Markets in Financial Instruments Directive): EU financial market regulation.
- FATCA (Foreign Account Tax Compliance Act): US tax law for foreign accounts.
- CFPB (Consumer Financial Protection Bureau): US agency for consumer protection.
- FCA (Financial Conduct Authority): UK financial regulator.
- SEC (Securities and Exchange Commission): US securities regulator.
Financial Inclusion
- Unbanked: Individuals without access to traditional banking.
- Underbanked: Individuals with limited access to financial services.
- Microfinance: Financial services for low-income individuals.
- Mobile Money: Financial services via mobile phones.
- Agent Banking: Banking services provided by third-party agents.
- Digital Identity: Verifying identity using technology.
- Financial Literacy: Educating individuals about financial management.
- Remittance: Sending money across borders.
- Pay-as-You-Go: Flexible payment models for services.
- Social Impact Investing: Investing for social and environmental impact.
Technology and Innovation
- AI (Artificial Intelligence): Automating financial services.
- Machine Learning: Algorithms that learn from data.
- Big Data: Analyzing large datasets for insights.
- Cloud Computing: Storing and processing data online.
- Cybersecurity: Protecting financial systems from attacks.
- Biometric Authentication: Using fingerprints or facial recognition for security.
- Token Economy: An economy based on digital tokens.
- Smart Contracts: Self-executing contracts on blockchain.
- Distributed Ledger Technology (DLT): Shared databases across multiple locations.
- Quantum Computing: Advanced computing for financial modeling.
Emerging Trends
- Embedded Finance: Integrating financial services into non-financial platforms.
- Super Apps: Apps offering multiple financial services.
- Central Bank Digital Currency (CBDC): Government-issued digital currency.
- Green Finance: Financing environmentally friendly projects.
- ESG (Environmental, Social, Governance): Ethical investment criteria.
- NFT (Non-Fungible Token): Unique digital assets.
- Metaverse: Virtual worlds with financial applications.
- Web3: A decentralized internet powered by blockchain.
- Decentralized Autonomous Organization (DAO): Organizations governed by smart contracts.
- Stablecoin: Cryptocurrencies pegged to stable assets.
Business Models
- SaaS (Software as a Service): Cloud-based software for financial services.
- B2B (Business-to-Business): Services for businesses.
- B2C (Business-to-Consumer): Services for individual consumers.
- Marketplace Lending: Platforms connecting borrowers and lenders.
- Subscription Model: Recurring payments for services.
- Freemium Model: Free services with premium upgrades.
- White Labeling: Rebranding financial products for other companies.
- Partnership Banking: Collaborations between banks and FinTechs.
- Incubator: Programs supporting early-stage FinTech startups.
- Accelerator: Programs helping startups scale quickly.