The popularity of financial technology (fintech) is growing rapidly as it continues to revolutionize the financial industry.
Fintech is a rapidly changing landscape that constantly introduces cutting-edge ideas and developments. Some of the advancements include core banking systems, digital assets, and tokenization.
While these fintech developments are exciting, the entire sector is also filled with jargon and acronyms that are difficult to decipher.
The fintech market is ready to expand
In 2023, Statista revealed that there are approximately 5.62 billion fintech users worldwide, with the majority of users (4.4 billion) using digital payments.
With the fintech sector expected to grow at an impressive pace, it will be helpful for stakeholders to understand the language.
Understand fintech concepts
TechRepublic Premium has created a quick glossary of 75 key concepts to help people understand what's going on.
This exclusive resource decodes the bustling world of fintech and offers clarity on terms such as blockchain as a service, which is a service model offered by third-party providers to help businesses improve existing blockchain technologies and transactions. BaaS enables businesses to meet compliance and transparency requirements by completing transactions and data transfers securely over a blockchain.
It often appears in the news, but people may not know that cryptocurrency refers to a decentralized form of digital or virtual currency that uses cryptography for security purposes. It offers new ways to transfer value and operate transactions. Examples include Bitcoin, Ethereum and Ripple.
What's more, the resource sheds light on the distributed ledger. It is a decentralized and digital record-keeping scheme that relies on consensus operations and cryptographic techniques. This guarantees the accuracy, security and transparency of transactions in a network of participants.
The glossary explains microfinance, a term that refers to banking or financial services provided to individuals and organizations in economically disadvantaged communities. Many microfinance institutions aim to provide credit through small, reasonable loans.
This resource will also allow you to dive into the realm of tokens, which are digital assets that are produced and controlled with blockchain technology. It represents various forms of value, ownership or access rights within the financial landscape. These can be used to represent real-world assets, enable specific functionality, or serve as a form of digital currency.
Elsewhere in the glossary the concepts of decentralized finance, personal finance, smart contracts and Islamic finance are explained.
For those looking to gain a deeper understanding of fintech, the quick 14-page glossary can be downloaded for $19 at TechRepublic Premium.
