Top 10 Fintech Glossary Terms You Need To Memorize For A Career In Industry
Fintech is to blame for a lot of big changes in the financial services industry. Experts say that by 2024, the market could be worth more than $180 billion. If you’re looking for a good fintech glossary, it means you must know how fintech could change financial services.
Access to the Internet and the creation of apps for financial services have been very important in making financial services better for users. For example, you could use your phone to get all the services of a bank with just a few clicks. By 2023, there will be almost 30,000 fintech startups around the world that offer new services. Also, there is a lot more interest in fintech funding than there used to be.
Many people around the world want to learn everything there is to know about fintech because it has value-based benefits. Fintech is a new idea that has everything it needs to stand the test of time and move finance into the future. But newcomers may find it hard to understand fintech if they don’t know some of the most important terms in the field. This list of terms and phrases related to fintech could be helpful for people who are just starting to learn about it.
Important Financial Technology (Fintech) terms
When your friends and coworkers talk about fintech, do you feel like you don’t belong? You’ve probably heard terms like “blockchain technology” and “decentralised finance” when people talk about fintech. Let’s look at some of the most important new words in the world of fintech that you need to know right now.
Also, read – The Metaverse Glossary You Need To Memorize In 2023
FinTech Glossary For Beginners
The term “3D Secure” refers to a way to protect the field of fintech. It is a security protocol that uses three different areas to deal with security flaws and fraud in online credit card transactions. 3D secure is an important term to add to a list of financial terms for people who are just starting out. The term “3D” refers to three things: the company that makes the card, stores that accept payments, and a platform for 3DS infrastructure.
ABL stands for “asset-based loan,” which is a type of business financing or a loan backed by a corporate asset. Asset-based loans help increase cash flow in the short term. Property accounts receivable, and equipment could be used as collateral.
AISP, which stands for Account Information Service Provider, is another important answer to the question “What are Fintech abbreviations?” In an open banking model, an AISP is a licenced company that helps third-party institutions get access to customer financial information when the customer gives permission.
You can’t find a list of fintech terms that don’t include the term “Alt-fi,” which stands for “alternative finance.” Alternative finance refers to all the different ways to get the money that aren’t cash, stocks, or bonds. Crowdfunding and peer-to-peer lending are two examples of alternative ways to get money.
AML, which stands for “anti-money laundering,” is another important word for people who are just starting out with fintech. AML stands for the set of best practices that banks and other financial institutions use to stop money laundering. AML is made up of a set of clear rules, regulations, and processes that meet legal requirements.
The Application Programming Interface, or API, is a key piece of technology that makes it easier to build fintech apps. It has a set of tools, procedures, and protocols that can be used to make apps that help different fintech apps and systems work together. APIs are a key part of making it possible for users to customise fintech solutions to their needs and simplifying daily tasks.
The list of important fintech terms also explains API Banking, which is a group of regulated protocols, tools, and procedures. API banking lets banks or other organisations that are not banks use an API to access banking services. Using API banking, banks can give third-party systems safe, limited access to their central systems for banking transactions.
Nigeria has become the first country in Africa to adopt open banking regulations, which will encourage innovation in the country’s banking industry. https://t.co/5aqEj7dm82
— TechCabal 👨🏾🚀 (@TechCabal) March 8, 2023
Automatic Clearing House
The answers to the question “What are fintech acronyms?” also bring up the Automated Clearing House, or ACH. The Automated Clearing House network was set up in 1974 as an electronic way to move money. The payment system could help manage direct deposits, payroll, tax payments, consumer bills, and many other payment services.
Artificial intelligence is the idea that robots can be programmed to act like humans. AI could set new standards in the world of fintech, making it possible to teach machines how to solve problems and learn.
A banking license is a legal document that says a bank can do business in a certain area. To get a banking licence, you have to meet a number of requirements, such as having a large market capitalization and explaining your business strategy.