FinTech Terms from A to Z

An article for the budding FinTech enthusiast

Published in

Michigan FinTech

5 min readDec 12, 2018

FinTech has been trending recently with buzzwords such as cryptocurrency and machine learning appearing in the news and popular culture. Although these topics may seem complex at first, breaking down the jargon makes the new technology and processes much easier to understand. FinTech is defining the future of finance — how we will save, invest, lend, etc. To help you stay in the know and improve your FinTech vocabulary, we have compiled a list of useful FinTech terms and companies.

A — Avant

A FinTech company that offers personal loans
Amount can range from $2,000 to $35,000 and is paid back at a fixed rate

B — Blockchain

Technology used to record cryptocurrency transactions, commonly called a “ledger”
Information from each transaction is stored in a “block” which is added to the “chain” and made viewable to the public

C — Cryptocurrencies

Digital currency that is “mined” (see hash code)
Uses blockchain to record transactions made with the currency
Many different types: bitcoin, ethereum, litecoin, zcash

D — Data (big data)

With the advent of new technology, larger and larger datasets are being collected
Big data refers to these large datasets that require more complex data processing systems than previously

E — eCommerce

Taking the act of buying and selling from traditional brick-and-mortar stores to the Internet
Examples: Amazon, Warby Parker, eBay
Most companies now have an online presence or have integrated eCommerce into their business operations

F — FinTech

Of course, it’s imperative to know what the word “FinTech” itself truly encompasses
At its most general level, FinTech is simply the cross between finance and technology
The term can be applied to a multitude of different areas — cryptocurrencies, automated investing, financial apps, etc.

G — Greensky

A company that facilitates home improvement loans
Greensky acts as a “middleman” as it provides loans to customers and then pays the home contractors directly, effectively taking traditional banks/credit unions out of the picture

H — Hash Code

A unique identifier given to blocks in blockchain
The information in each block must be verified before joining the chain and given a unique hash code
Whichever computer is first to identify a new hash code to be assigned to the new block is given bitcoin — this is how bitcoin is “mined”

I — Insurtech

A general term for new technology created in the insurance industry

J — J. P. Morgan

According to jpmorganchase.com, “JPMorgan Chase & Co. is a leading global financial services firm and one of the largest banking institutions in the United States, with operations worldwide.”

K — Kabbage

Provide quick access to loans that come with relatively high interest rates
Kabbage is especially tailored toward small business owners
Loans can be up to $250,000 and typically must be paid back within a year

L — Lemonade

An insurance company that adds social awareness to its transactions
Lemonade charges customers a flat fee and donates leftover unclaimed premiums to a charity of the customer’s choosing at the end of the year

M — Machine learning

Closely linked with big data, machine learning involves using algorithms to analyze datasets
The “learning” involves programming the machines to autonomously make improvements to its own functioning

N — Nerdwallet

Offer financial advice to help the general public navigate difficult financial decisions
From loans to credit cards to tax code changes, Nerdwallet helps explain the gritty details in layman’s terms

OOpen banking

A term describing systems created according to regulations that require financial institutions to post important customer information and giving consumers a way to communicate personal financial information to these institutions
Concept created in the customer’s best interest and uses a decentralized system of API’s

P — Paypal

Founded by Elon Musk, is a well-known company allowing consumers to make online payments
Paypal now has an app and PayPal.Me feature which lets users split payments among groups of people

Q — Qapital

A banking app (available on ios and android) used for saving, investing, budgeting, etc.

R — Robo advisors

Robo advisors use algorithms to automate investing or provide financial advice
A less expensive and readily available alternative to traditional financial advisors

S — Square

Square has created a device which reads and processes credit card transactions
The square credit card reader can be attached to a person’s device
Square also offers loans to small businesses based on previous sales made using Square technology and allows these loans to be repaid using a percentage of subsequent sales using the Square card reader

T — Tala

According to their website, Tala is working to bring financial services to areas of the world previously without
Tala’s app provides customers with immediate loan approval decisions using, according to their website, data such as “social connections, texts and calls, merchant transactions, app usage, and personal identifiers” to “verify identity and assess creditworthiness”

U — Unicorns

Innovative, entrepreneurial companies seeking to transform the industries they enter
As Fintech is an emerging area upsetting the traditional financial industry, there are many FinTech “unicorns” hoping to capture the future of FinTech

V — Venmo

A mobile app available on ios and android that allows users to make payments to other users
These payments can be made by linking a Venmo account to a debit card or bank account

W — Wealthfront

A personal finance company using robo-advising to make investment decisions
Marketed specifically for millennials
Advise customers on the best ways to save

X — X Financial

A growing, top FinTech company in China
X Financial matches creditworthy borrowers with the growing number of willing investors, specifically focusing on personal finance

Y — Y-Combinator

A startup accelerator company
A silicon valley incubator, YC funds and mentors these startups
Has supported many successful companies such as Weebly, Airbnb, and Dropbox

Z — ZCash

A cryptocurrency like bitcoin
Uses blockchain, but ensures total anonymity of customers (amount and identity are concealed) unlike the publicly available bitcoin transactions