20+ Fintech & Marketing Glossary

The purpose of the page is to provide a comprehensive overview of common fintech and marketing jargon, covering essential terms and concepts within the financial technology sector and its intersection with digital marketing. It aims to educate readers on the definitions, applications, and significance of various fintech and marketing terms, ranging from technological innovations like blockchain and cryptocurrencies to marketing strategies such as content marketing and SEO techniques.

API (Application Programming Interface)

APIs allow different financial systems to communicate with each other. In fintech, they are crucial for integrating various financial services and enhancing functionalities [16] [17].

Blockchain

Blockchain is a distributed database. It runs on a decentralized network of computers. Each participant holds a copy of the ledger. It allows for secure, transparent, and tamper-proof record-keeping. Bharo’s ledger of users and loans is based on Hyperledger Fabric. There is a company called Spydra that hosts and simplifies administration. Here’s a simplified overview of how blockchain in the context of transaction processing [5] [15]:

Transaction Creation - blockchain user initiates a transaction, which involves the movement of digital assets between two parties.
Transaction Propagation - The transaction is transmitted to a network of nodes (computers), where it is verified.
Block Addition - Once verified, the transaction is grouped with other transactions into a "block".
Block Confirmation - This block is then added to an existing chain of blocks - hence the term "blockchain". Each block is connected to the one before and after it.
Immutable Ledger - The blockchain maintains a chronologically ordered log of all transactions, which is resistant to modification. This immutability is ensured through cryptographic hashes that secure each block to its predecessor.

Cryptocurrency

Digital or virtual currencies that are minted on a blockchain network. It is worth noting blockchains do not require a cryptocurrency or non-fungible tokens [4] [20].

Customer Relationship Management (CRM)

Customer Relationship Management (CRM) refers to the principles, practices, strategies, and technologies that an organization employs to manage and analyze interactions and data throughout the customer lifecycle. The goal is to enhance business relationships with customers, improve customer retention, and drive sales growth [21] [22].

Neobank

Online-only banks without traditional physical branches, offering digital and mobile-first financial solutions [12].

Robo-advisor

Robo-advisors are digital platforms that offer financial planning and investment management services with little to no human oversight, utilizing sophisticated algorithms to tailor advice and strategies to individual user profiles [2] [3] [7] [8] [9] [13] [14].

Insurtech

InsurTech employs advanced technologies like artificial intelligence (AI), automation, CRM systems, and data analytics to streamline operations, diminish administrative tasks, and enhance precision. This approach presents numerous advantages for insurers, brokers, and policyholders [10].

Regtech

Regtech, short for Regulatory Technology, employs advanced technologies such as automation and data analytics to streamline and enhance the regulatory processes within the financial services sector. This innovative approach aids companies in efficiently managing compliance tasks, reducing risks associated with regulatory violations, and cutting down on operational costs associated with traditional compliance methods [12] [23].

KYC (Know Your Customer)

KYC, or Know Your Customer, is a critical compliance and security process in the financial services industry, involving the verification of clients' identities. This process is essential for preventing identity theft, financial fraud, money laundering, and terrorist financing. By ensuring that clients are who they claim to be, KYC helps in maintaining the integrity of financial transactions and safeguarding the financial system from illicit activities [12] [24].

P2P Lending (Peer-to-Peer)

Peer-to-Peer (P2P) lending is a digital financial platform that connects individual borrowers directly with lenders, bypassing traditional banking institutions. This innovative lending model allows individuals to either lend money to earn interest or borrow money without the intermediation of a conventional financial institution. P2P lending platforms facilitate these transactions through an online marketplace, offering a more accessible and often more cost-effective alternative for borrowing and investing [12] [25] [26].

ICO (Initial Coin Offering)

An Initial Coin Offering (ICO) is a modern crowdfunding mechanism, predominantly utilized by startups, to raise capital through the issuance of cryptocurrencies or tokens. This method allows investors to support new projects by purchasing tokens before they are launched on the market. ICOs have become a popular alternative to traditional fundraising methods, providing startups with a platform to secure funding while offering investors the opportunity to potentially profit from the tokens' value appreciation [12] [27] [28].

Open Banking

Refers to the practice of providing third-party financial service providers open access to consumer banking and financial data via APIs [18].

Fintech Sandbox

A controlled testing environment for fintech innovations, allowing startups to experiment under regulatory supervision [12].

Conversion Rate

In digital marketing, it is the percentage of users who take a desired action. In fintech, it relates to converting visitors to customers [12].

Customer Acquisition Cost (CAC)

The cost associated with convincing a customer to buy a product or service, critical in evaluating marketing efficiency [12].

Lead Generation

The initiation of consumer interest or inquiry into products or services. In fintech, it involves strategies to attract financial service customers [12].

Digital Wallet

A digital system that stores payment information and allows for making transactions securely and conveniently [12].

Machine Learning in Fintech

Involves using algorithms to analyze financial data to predict trends and make decisions [12].

Payment Gateway

Facilitates the processing of credit card payments by transferring key information between payment portals and the front end [12].

Smart Contracts

Contracts whose terms are encoded in computer language instead of traditional legal language and are self-executing and self-enforcing [15].

Tokenization

The process of turning rights to an asset into a digital token on a blockchain, potentially including various types of assets [15].

User Experience (UX) in Fintech

Refers to the overall experience of using a fintech product, focusing on ease of use and customer satisfaction [12].

Content Marketing

Creating and sharing valuable content to attract and retain customers and drive profitable actions [1] [2] [3][29].

Keyword Research

Identifying and analyzing the terms that people enter into search engines to optimize content visibility and reach [8] [13] [14].

Local SEO

Optimizing a business's online presence to attract more visitors from relevant local searches [4] [10] [11] [16] [20].

SERP Features

Special formats on a search engine results page that enhance visibility and user engagement [12] [18].

On-Page SEO

Optimizing web pages to improve their search engine rankings and attract more relevant traffic [15] [17].

PPC (Pay-Per-Click) Advertising

PPC is a model of digital marketing where advertisers pay a fee each time one of their ads is clicked. It is primarily used on search engines and social media platforms where businesses can create ads that appear in the sponsored results of a search query or within the feeds of targeted social media users. The cost of each click is determined either through a flat rate or via a bidding process, where advertisers compete for ad placement by bidding on keywords relevant to their target audience. This model allows for precise targeting and immediate traffic generation, making it a popular choice for businesses seeking to increase visibility and drive targeted actions on their websites [30][31].

Off-Page SEO

Techniques used outside of one's own website to impact rankings within search engine results pages [15] [16].

Citations