Vocabulary

• Blockchain – A decentralized and distributed digital ledger that records transactions across many computers in such a way that the records cannot be altered retroactively.
• Cryptocurrency – A digital or virtual form of currency that uses cryptography for security.
• Bitcoin – A type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
• Ethereum – An open-source, blockchain-based platform that enables developers to build and deploy decentralized applications (dApps).
• FinTech – An industry composed of companies that use technology to offer financial services. These companies are generally start-ups founded with the purpose of disrupting incumbent financial systems and corporations that rely less on software.
• InsurTech – A subset of FinTech that focuses on innovations in insurance.
• Robo-Advisors – Digital platforms that provide automated, algorithm-driven financial planning services with minimal human supervision.
• Peer-to-peer lending (P2P) – The practice of lending money to individuals or businesses through online services that match lenders with borrowers.
• Mobile Payments – Payment services performed from or via a mobile device.
• Crowdfunding – The practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the Internet.
• ICO (Initial Coin Offering) – An unregulated means by which funds are raised for a new cryptocurrency venture.
• IPO (Initial Public Offering) – The process by which a private company can go public by sale of its stocks to the general public.
• AI (Artificial Intelligence) – The simulation of human intelligence processes by machines, especially computer systems.
• Machine Learning – A type of artificial intelligence that allows software applications to become more accurate in predicting outcomes without being explicitly programmed.
• Big Data – Extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions.
• Data Mining – The process of discovering patterns in large data sets involving methods at the intersection of machine learning, statistics, and database systems.
• Neural Networks – Computing systems vaguely inspired by the biological neural networks that constitute animal brains.
• Algorithm – A set of rules to be followed in calculations or other problem-solving operations, especially by a computer.
• Cloud Computing – The delivery of computing services—including servers, storage, databases, networking, software, analytics, and intelligence—over the Internet (“the cloud”) to offer faster innovation, flexible resources, and economies of scale.
• Cybersecurity – The practice of protecting systems, networks, and programs from digital attacks.
• API (Application Programming Interface) – A set of procedures and functions that allow the creation of applications which access the features or data of an operating system, application, or other service.
• IoT (Internet of Things) – The interconnection via the Internet of computing devices embedded in everyday objects, enabling them to send and receive data.
• KYC (Know Your Customer) – The process of a business verifying the identity of its clients and assessing their suitability, along with the potential risks of illegal intentions towards the business relationship.
• AML (Anti-Money Laundering) – A set of procedures, laws or regulations designed to stop the practice of generating income through illegal actions.
• PSD2 (Payment Services Directive 2) – European legislation for electronic payment services. It sets the legal foundation for the further development of a better integrated internal market for electronic payments within the EU.
• Open Banking – A system that provides a user with a network of financial institutions’ data through the use of application programming interfaces, better known as APIs.
• Challenger Bank – Small, recently-created retail banks in the United Kingdom that compete directly with the longer-established banks in the country, sometimes by specialising in areas underserved by the "big four" banks.
• Smart Contracts – Self-executing contracts with the terms of the agreement directly written into code.
• RegTech – The management of regulatory processes within the financial industry through technology.
• Digital Wallet – An electronic device or online service that allows an individual to make electronic transactions.
• Credit Score – A number assigned to a person that indicates to lenders their capacity to repay a loan.
• Interest Rate – The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
• Inflation – The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.
• GDP (Gross Domestic Product) – The total value of goods produced and services provided in a country during one year.
• Liquidity – The degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price.
• Venture Capital – A type of private equity, a form of financing that is provided by firms or funds to small, early-stage, emerging firms that are deemed to have high growth potential, or which have demonstrated high growth.
• Asset Management – The direction of a client's cash and securities by a financial services company, usually an investment bank.
• Equity – The value of the shares issued by a company.
• Debt – An amount of money borrowed by one party from another.
• Derivatives – Financial securities with a value that is reliant upon or derived from, an underlying asset or group of assets.
• Forex Market – The market in which participants can buy, sell, exchange, and speculate on currencies.
• Bonds – A fixed income instrument that represents a loan made by an investor to a borrower.
• Stocks – Security that represents the ownership of a fraction of a corporation.
• Commodities – Basic goods used in commerce that are interchangeable with other goods of the same type.
• Budget – An estimate of income and expenditure for a set period of time.
• Savings Account – A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate.
• Current Account – A type of deposit account that caters to professionals and businessmen alike. Dealing largely with liquid deposits, this product allows for withdrawal of funds and checks being written against the balance and does not limit the number of transactions in a day.
• Retirement Planning – The process of determining retirement income goals and the actions and decisions necessary to achieve those goals.
• Insurance – A contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.
• Taxation – The means by which governments finance their expenditure by imposing charges on citizens and corporate entities.