GLOSSARY

FinTech Glossary / Dictionary (A–Z):

 

A

Account Aggregator (AA)

A regulated framework that allows users to share their financial data securely across banks and fintech apps with full consent.

Alternative Lending

Non-traditional lending models such as P2P lending, digital NBFCs, or online micro-loans.

API Banking

Banking services provided through APIs that allow apps and platforms to access bank data or initiate payments.

AUM (Assets Under Management)

The total value of assets that a financial institution manages for its clients.

AML (Anti-Money Laundering)

Regulatory measures to detect and prevent illegal money laundering activities.

B

BaaS (Banking-as-a-Service)

A model where companies use APIs to offer banking services without building a bank from scratch.

Blockchain

A decentralized digital ledger used to record transactions securely and transparently.

Buy Now, Pay Later (BNPL)

Short-term financing that lets users buy products and pay over time without interest.

Biometric Authentication

Identity verification using fingerprints, facial recognition, or iris scans.

C

CBDC (Central Bank Digital Currency)

A digital version of a country’s currency issued and regulated by the central bank.

Crowdfunding

Raising small amounts of money from a large group of people using online platforms.

Crypto Wallet

A tool or app that stores and manages cryptocurrency keys.

Chargeback

A payment reversal initiated when a customer disputes a transaction.

D

DeFi (Decentralized Finance)

Financial services like lending and trading built on blockchain without intermediaries.

Digital Banking

Banking services delivered entirely online via apps or websites.

Digital KYC (eKYC)

Paperless identity verification using Aadhaar, video KYC, or online document checks.

DigiLocker

A government-backed digital storage service for verified documents.

E

EMI (Equated Monthly Installment)

A fixed monthly payment used to repay loans.

Escrow Account

A secure account used to hold funds until certain conditions are met.

ETF (Exchange-Traded Fund)

A type of investment fund that trades on stock exchanges like a regular stock.

F

FinTech

Technology-driven financial services aimed at improving banking, payments, lending, and investing.

FICO Score

A widely used credit score to assess loan eligibility.

Fraud Analytics

AI-based tools that detect suspicious or fraudulent transactions.

G

Gamified Finance

Financial apps using game-like elements such as rewards or levels to increase engagement.

Global Payments

Cross-border digital payment methods enabling fast international transfers.

H

High-Frequency Trading (HFT)

Algorithm-driven trading that executes orders in milliseconds.

Hybrid Banking

A mix of digital and branch-based banking experiences.

I

InsurTech

Technology innovations improving insurance products, distribution, and claims.

Instant Payments

Payment systems like UPI or Real-Time Payments (RTP) that settle transactions within seconds.

IPO (Initial Public Offering)

A company's first time offering shares to the public.

J

JAM Trinity

A combination of Jan Dhan accounts, Aadhaar, and Mobile that supports large-scale digital finance in India.

K

KYC (Know Your Customer)

A mandatory process to verify user identity before offering financial services.

Keyless Authentication

Password-free login using biometrics or OTPs.

L

Lending Marketplace

Platforms that connect borrowers with multiple lenders for personalized loan options.

Ledger Technology

Systems used to record financial transactions securely.

M

Mobile Wallet

An app that stores money digitally and enables instant payments.

Micro-Investing

Platforms that allow users to invest small amounts regularly.

Monetary Policy

Central bank actions to control inflation and money supply.

N

Neobank

A fully digital bank without physical branches, offering app-based banking services.

NFC Payments

Tap-to-pay payments made using Near Field Communication technology.

O

Open Banking

A system allowing third-party apps to securely access bank data with user consent.

Open Finance

An expanded version of open banking that includes insurance, loans, pensions, and investments.

P

P2P Lending

Peer-to-peer lending that connects borrowers directly with investors.

Payment Gateway

A service that processes online payments securely.

Payment Orchestration

A system that routes payments through multiple gateways to improve success rates.

Q

QR Payments

Digital payments made by scanning Quick Response (QR) codes.

R

RegTech (Regulatory Technology)

Technology that helps companies comply with financial regulations efficiently.

Robo-Advisor

Automated investment platforms that offer portfolio advice using algorithms.

Risk-Based Pricing

Loan pricing based on a borrower’s credit risk profile.

S

Stablecoin

A cryptocurrency backed by assets like USD or gold to reduce price volatility.

Stock Tokenization

Representing traditional stocks as digital tokens on a blockchain.

Sandbox (Regulatory Sandbox)

A controlled environment where fintech startups test new products under regulatory supervision.

T

Tokenization

Replacing sensitive financial data with secure digital tokens.

T+1 Settlement

Settlement cycle where trades are settled one day after execution.

U

UPI (Unified Payments Interface)

A real-time digital payment system in India allowing instant bank-to-bank transfers.

Underwriting

The process of assessing risk before issuing a loan or insurance.

V

Video KYC

Remote identity verification through a live video call with an authorized agent.

Virtual Card

A digital version of a debit or credit card used for secure online payments.

W

Web3 Finance

Next-generation financial services built on decentralized internet technologies.

Wallet-to-Wallet Transfer

Digital transfer of funds between two mobile wallets.

X

XBRL (eXtensible Business Reporting Language)

A global standard for digital financial reporting.

Y

Yield Farming

A DeFi practice of earning rewards by lending or staking crypto assets.

Z

Zero-Knowledge Proofs (ZKP)

A cryptographic method that verifies identity or information without revealing sensitive data.

Zeta Banking

Advanced digital banking using real-time processing, AI, and cloud-native infrastructure.