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Everything you need to know about fintech

The popularity of financial technology (fintech) is growing rapidly as it continues to bring revolutionary changes to the financial industry.

Fintech is a rapidly changing field, with cutting-edge ideas and developments constantly being introduced. Some of these advancements include core banking systems, digital assets, and tokenization.

While these fintech developments are exciting, the industry is also filled with jargon and acronyms that can be difficult to decipher.

The fintech market is about to expand

As of 2023, Statista revealed that there are approximately 5.62 billion fintech users worldwide, with the majority of them (4.4 billion) using digital payments.

With the fintech industry expected to grow at an astonishing rate, it would be useful for interested parties to understand the language.

Understand fintech concepts

TechRepublic Premium created a quick glossary of 75 key concepts to help people understand what’s going on.

This exclusive resource decodes the dynamic world of fintech, providing clarity on terms like blockchain-as-a-service, a service model provided by third-party vendors to help businesses enhance existing blockchain technology and transactions. BaaS enables businesses to meet compliance and transparency requirements by completing transactions and data transfers securely through blockchain.

It’s in the news a lot, but people may not know that cryptocurrency refers to a decentralized form of digital or virtual currency that uses cryptography to ensure security. It provides new ways to transfer value and operate transactions. Examples include Bitcoin, Ethereum, and Ripple.

More importantly, this resource sheds light on distributed ledgers. It is a decentralized digital record-keeping scheme that relies on consensus operations and encryption technology. This ensures the accuracy, security and transparency of transactions within the participant network.

This glossary explains microfinance, a term that refers to banking or financial services provided to individuals and organizations from economically disadvantaged groups. Many microfinance institutions aim to provide credit through reasonably small loans.

This resource also provides insight into the world of tokens, which are digital assets produced and controlled on blockchain technology. It represents various forms of value, ownership, or access within the financial realm. They 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 learn more about fintech, a quick 14-page glossary can be downloaded for $19 on TechRepublic Premium.

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