Fintech: Everything you’ve always wanted to know about financial technology

  • The financial technology (fintech) industry is thriving globally and received $17.4 billion in investment last year alone.
  • According to EY’s Fintech Adoption Index, a third of consumers worldwide are using two or more fintech services, with 84 percent of customers saying they are aware of fintech (up 22 percent from the previous year).
  • But users are often unaware that the financial services applications they use count as “fintech”, or may not know what exactly fintech and its accompanying jargon means.

CNBC explains all the crucial terminology you need to know to understand the fintech industry.

The financial technology (fintech) industry is thriving globally and received $17.4 billion in investment last year alone.

According to EY’s Fintech Adoption Index, a third of consumers worldwide are using two or more fintech services, with 84 percent of customers saying they are aware of fintech (up 22 percent from the previous year).

But users are often unaware that the financial services applications they use count as “fintech”, or may not know what exactly fintech and its accompanying jargon means.

Here, CNBC explains all the crucial terminology you need to know to understand the sector.

Those engaged in the industry develop new technologies to disrupt traditional financial markets.

Various start-ups have been involved in the process of creating these new technologies, but many of the world’s top banks including HSBC and Credit Suisse have been developing their own fintech ideas as well.

Bitcoin and ether are the most common form of digital currencies. But there are other forms of virtual cash, such as Litecoin, Ripple and Dash (i.e. “Digital Cash”).

‘Bitcoin’ – a term we’re more used to hearing even in mainstream finance – is the first and one of the most prominent cryptocurrencies used by traders in the world of fintech.

It all began when an unknown person(s), under the pseudonym Satoshi Nakamoto, designed bitcoin as a peer-to-peer (P2P) payment network without the need for governance by any central authority.

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Fintech: Everything you’ve always wanted to know about financial technology