Dear Readers, I hope you enjoyed summer break and that you are ready to dive into reading the eleventh edition of the Next Gen Fintech (NGF) Newsletter, where we provide insights on the disruptive fintech world.
If you are at least interested in this world, this article is for you! Indeed, today, we are going to establish a Glossary of the most relevant sub-industries you need to know if you are a fintech-lover.
- Alternative finance: Non-traditional forms of finance, including crowdfunding, peer-to-peer lending, and microfinancing, aimed at providing access to capital outside of traditional banking.
- Blockchain and Cryptocurrencies: Technology that enables decentralized finance (DeFi), cryptocurrencies, and digital assets through blockchain. It also includes platforms for trading, storing, and using these digital assets.
- Buy Now, Pay Later (BNPL): A financing option that allows consumers to split purchases into installments, often interest-free, integrated directly into e-commerce platforms.
- Crowdfunding: Platforms that enable individuals or businesses to raise funds from a large number of people, often in exchange for equity or rewards.
- Decentralized Finance (DeFi): A sub-industry of blockchain that removes intermediaries from financial transactions, enabling peer-to-peer lending, borrowing, and trading on decentralized platforms.
- Digital Identity and Security: Technologies focused on securing digital transactions and identities, including biometric authentication, encryption, and identity verification services.
- Embedded Finance: The integration of financial services within non-financial platforms, such as e-commerce sites or ride-sharing apps, to provide seamless financial transactions.
- Green Fintech: Focused on integrating sustainability into financial services through technologies that promote environmentally friendly investments and carbon tracking.
- Insurtech: The use of technology to improve and automate insurance services, including customer experience, claims processing, and underwriting.
- Lending Technology (LendTech): Digital platforms that provide alternative lending options, including peer-to-peer lending, online mortgages, and buy-now-pay-later services.
- Neobanking: Digital-only banks that operate entirely online, providing services without the need for physical branches.
- Payments and Digital Wallets: Encompasses all technology-driven solutions for processing digital transactions, including mobile wallets, contactless payments, and peer-to-peer (P2P) payments.
- Personal Finance Management (PFM): Tools and apps designed to help individuals manage their personal finances, including budgeting, expense tracking, and financial planning.
- PropTech (Property Technology): Technology that innovates and improves the real estate industry, including property management, real estate transactions, and smart buildings.
- Quantum Finance: The emerging application of quantum computing in financial modeling, risk analysis, and transaction optimization, promising to revolutionize complex financial computations.
- RegTech (Regulatory Technology): Solutions that assist financial institutions in complying with regulations more efficiently using automation, AI, and data analytics.
- Wealth Management and Robo-Advisors: Digital platforms offering automated, algorithm-driven financial planning services with minimal human supervision, often aimed at retail investors.
- WealthTech: Technology that facilitates wealth management, including robo-advisors, digital brokerage platforms, and automated investment tools.
At NGF, we explore the emerging trends that shape fintech. I commit to providing you with insights about the evolving world of financial technology, keeping you updated on current trends as well as new inventions and discussions that may take place.
Thank you for taking this journey with me. Do not hesitate to give feedback! Watch out for the next issue, where we are going to follow this Glossary but focusing this time on the Key technologies Involved in Fintech ;)
