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Fintech .. What is the most important thing

2018-07-05 08:51 pm | Resource: Crypto Section | No Views : 206

Fintech .. What is the most important thing The financial technology industry (Fintech) is thriving worldwide and has received huge investments each year, much more than the year before. According to the Fintech Adoption Index, a third of consumers worldwide use financial technology services or more, with 84% of customers saying they are familiar with financial technology.
However, users are often unaware that the financial services applications they use are "fintech" or may not know exactly what the term fintech means and the associated terms.
Today, we will learn about important definitions of the industry that has become the dominant mind of many investors today.

Financial Technology (FINTECH)

Financial Technology (FINTECH)
Financial technology is widely defined, like any technological innovation in financial services.
Industry workers are developing new technologies to disrupt traditional financial markets.
Many startups have been involved in the creation of these new technologies, but many of the world's largest banks, including HSBC and Credit Suisse, have also developed their own ideas.
Fintech uses technology widely as payment applications for more complex software applications such as artificial intelligence and massive data.

Digital currency

Digital currency
Encrypted currency is a decentralized digital currency that uses encryption, meaning it is a process of converting data into code, to generate units of currency, and to check transactions independent of the central bank or government.
Bitcoin and Ethereum,these are the most common currencies in the world of digital currencies, and there are other forms of virtual currencies, including the Ripple, Dash, and Litecoin.

Bitcoin

Bitcoin
Bitcoin, the term we used to hear, even in mainstream finance, is the first and one of the most prominent digital currencies used by technology traders.
It all began when an anonymous person, under the pseudonym Satoshi Nakamoto, designed the Bitocin as a peer-to-peer (P2P) system without the need for any intermediary or central authority.
In a introductory paper, Nakamoto defined the virtual currency as a "digital counterparty" that would allow online payments to be sent directly from one party to another without going through a financial institution.

Blockchain

Blockchain
Blockchain is a form of Distributed Ledger Technology (DLT), meaning it keeps records of all digital currency transactions on a distributed network of computers, but does not have a central ledger.
Data is secured here through encrypted blocks, and many experts believe that the technology can provide transparency for many different industries and not just financial services.
The original blockchain network was created by the founder of the Bitcoin to act as a general ledger for all transactions of that currency.

Ethereum

Ethereum
Ethereum is another type of blockchain network that was proposed by a 19-year-old Russian-Canadian programmer, Vitalik Botarin, in 2013.
Ethereum differs from the original blockchain in that it is designed for people to build decentralized applications. These applications allow users to interact with each other directly rather than having to pass through intermediaries, says Botarin, explaining the project in 2014.
Ether is the symbol of the blockchain ethereum, and this symbol is traded on various digital currency exchanges.

Disruptive innovation

Disruptive innovation
Destructive innovation occurs whenever new technologies are changed, the way markets operate.
Although not an exclusive term, it is often used to describe events in financial services, where technical developments push financial institutions to rethink their approach to the industry.
Biotech companies that operate in biotechnology can sometimes "spoil" themselves. Christina Hamilton, head of partnerships and international expansion at Western Union Transfer, said in an interview with CNBC in July last year: "We are still disabling and putting ourselves up."

Regulatory Technology (Regtech)

Regulatory Technology (Regtech)
Regtech is a technology that helps companies in the financial services industry comply with financial compliance rules.
One of the key priorities of regulatory technology is to automate and digitize AML rules aimed at reducing illegally obtained income and KYC, which identifies and verifies clients of financial institutions to prevent fraud.
The UK's Financial Behavior Authority was the first government regulator to promote the term.
Regulators work with regulatory technology and companies that promote them, on a range of different applications, including AI, automated learning, to improve compliance efficiency in financial services and reduce costs.

Insurance Technology (Insurtech)

Insurance Technology (Insurtech)
Insurtech is a subset of financial technology, which is related to the use of technology to simplify and improve the efficiency of the insurance industry.
A report by consulting with giant Capgemini and the non-profit industry body Efma, in January 2017, found that traditional insurers face increasing competitive pressure due to the emergence of a number of emerging insurance companies.

Initial Currency Presentation (ICO)

Initial Currency Presentation (ICO)
The initial currency offer (ICO) is a collective financing measure for emerging companies that use the blockchain and involves the sale of currencies initially against cash.
ICO's operations are similar to IPOs, where the company's shares are sold to investors for the first time.
But ICOs differ from IPOs in that they deal with project supporters rather than investors, making investment more like a collective financing experience.

Open banking

Open banking
Open banking refers to an emerging idea of ​​financial services and financial technology, which states that banks should allow third party companies to build applications and services using bank data.
It includes the use of APIs - codes that allow different financial programs to communicate with each other - to create a network of connected financial institutions and third-party providers (TPPs).
Supporters of open banking believe that the Open Environment API will allow emerging biotechnology companies to develop new applications such as mobile applications to allow customers to have greater control over their banking statements and financial decisions.

Robo-advisors

Robo-advisors
They are automated platforms that automate investment tips using financial algorithms.
They limit the need for human investment managers, which greatly reduces the cost of portfolio management.

Smart contracts

Smart contracts
Smart contracts are computer programs that automatically execute contracts between buyers and sellers.
Smart contracts are often based on the blockchain, and can save a lot of the time and costs involved in transactions that usually require a person to implement them.
In ethereum, for example, contracts are treated as decentralized texts stored in the blockchain network for subsequent implementation.

Accelerators

Accelerators
Accelerators, also known as "seed accelerators", are programs that are adopted by financial institutions to guide business with emerging companies in technology.
Fintech accelerators can be either privately or publicly funded, with many programs run by major banks, from the UK's central bank, and the Bank of England, to Barclays Private Multinational.

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