A Newcomer’s POV to Terminology (N – Z)

Welcome back, everyone! Remember how I was covering terminology? Well. It’s only been a week. So, for this piece, I wanted to close that off by covering another batch of important jargon. As a quick summary of why, and how, I’m doing this…

There’s a lot of phrases. If you’re new (like me), a lot of this flies over your head. It can make you dizzy. In a more comprehensible way, one might even think of it as “each word made sense, but together they don’t,” which can leave people confused. So I thought of a solution. It’s not a be-all-end-all dictionary but it’s a handy reference for phrases that are, at least in my opinion, the most important to pick up and grasp in the world of fintech.

Fintech is a lake that stretches down to the ocean floor, though, and there’s always more being uncovered. By innovators, by analysts, by reporters. So if there are a new set of terms that should be covered (like an ‘advanced’ set of phrases), you might see another post like this!

“Open the Kimono.”

I want to open this by saying that I do not support the usage of this phrase. I heavily discourage using it, in fact. Why, though? In short, this phrase is rooted in racism and misogyny, and could even be an example of cultural appropriation within the corporate world.

What this phrase is supposed to mean is to reveal the inner machinations of something, or someone, or to be open about a company’s plans. After all, revealing some of your company’s secrets in a partnership can help build a strong relationship of trust and cooperation. Nowadays, if you were to define it by a phrase, it’s much more advisable to just say “open the books.”

Onboarding.

It’s far easier to think of this term as “jumping on board.” Onboarding is the process in which a user is acclimated to their new product, and it’s a process that’s always being refined. Accessibility, speed, value; getting a customer onto your product as smoothly as possible is key for setting up that first impression. A lot of companies focus on streamlining that process.

Onboarding isn’t just for customers, either, but can refer to getting new employees set up in their role as efficiently and effectively as possible. Training is a part of this, but it’s not the whole sum.

Point of Sale.

These are your tills, your self-checkout machines, the pages where you enter in your card details; places where you make the payments. Technology has streamlined these, with electronic registers automating many of the processes involved as well as tracking sales data.

From there – since it’s basically a specialized computer system – companies can improve the efficiency in varying ways. Amazon Go (with its walk-in-walk-out technology) is a key example of how far these innovations have come, which could go on to revolutionize points of sale and how customers interact with them.

P2P Lending.

It’s crowdfunding mixed with loans. How? It connects “people who want to lend money” with “people who want to borrow money” on a common meeting ground (nowadays, through a website). This can be great for people who want to take out a loan but in a less traditional way instead of going to banks and financial institutions, and can be good for people who would normally get rejected (such as, for instance, if they had a poor credit score).

Regulators & Regulations.

A finance regulation is, in a few words, a set of rules. Banks, financial institutions, insurance companies – any group or company in the finance world must abide by these rules. It’s more than just rules, though. It’s the process of enforcing those rules. It’s the constant supervision of organizations. It’s ensuring the system isn’t abused or exploited.

There are a smorgasbord of agencies out there whose sole purpose is to regulate the financial world. Just as we call the rules “regulations,” we call the overseers “regulators.” Every country has multiple. The following list only covers the most prominent ones in the UK, but there are a number of other regulators that function in the US, in Europe, and other parts of the world.

• Financial Conduct Authority (FCA).
• Prudential Regulation Authority (PRA).
• Financial Policy Committee (FPC).
• Financial Reporting Council (FRC).

Robo Advisor.

Ever wanted a better investment portfolio, but couldn’t make that step for one reason or another? That’s where robo advisors step in. It’s a quirky little name for them, but that’s exactly what they are. A.Is who put investing on autopilot; they examine data using surveys, as well as other queries, to verify your financial situation. After that, they make investments for you.

While they lack the nuance that the human element has, robo advisors are often seen as a viable option for many due to their low costs, easy account setup, and ease of use.

Software as a Service.

If you use Google Apps, Office 365, Dropbox, or other such cloud and web-based software, you’re interacting with Software as a Service (SaaS). It’s freeing, in a sense, as users (be they individual or business) are not required to use complex software or hardware. It’s all hosted on the internet. These services can range from production, to file hosting, and even conferencing.

Unicorns, Decacorns & Soonicorns.

These are simple. A unicorn is a startup / new business that is valued at $1 billion. Decacorns, as the ‘dec’ in the name would suggest, is a startup valued at $10 billion (though these, and higher ones, are rare). Soonicorns are soon-to-be unicorns – it’s literally just a pun.

Underbanked.

This refers to those who lack bank accounts, lack basic financial services, and/or rely on cash instead of checks or credit cards. If you think of financial inclusion as getting everyone banked (which, simply, it is), then the underbanked are those that financial inclusion is reaching out to.

Venture Capital.

For many startups (and for entrepreneurs too), acquiring funds can be a tricky prospect. That starting capital can be found, however, through venture capitalists. They’re investors who back particularly promising startups – ones who have the potential to grow exponentially – through funds and, sometimes, through expertise or some other kind of help. A way that I think of the naming is “venturing into a profitable unknown.” It’s a fanciful way to say it, but it works.

Research / SEO Links!

https://www.bobsguide.com/articles/fintech-glossary-of-terms/

https://dataconomy.com/2016/07/a-beginners-guide-to-fintech-terminology/

https://www.investopedia.com/financial-term-dictionary-4769738

https://www.fundera.com/blog/business-finance-terms-and-definitions#credit

https://www.businessinsider.com/glossary-of-personal-finance-terms-you-should-know?r=US&IR=T

https://www2.deloitte.com/uk/en/pages/financial-services/articles/fintech-glossary.html

https://www.icmagroup.org/Regulatory-Policy-and-Market-Practice/fintech/fintech-jargon/

https://disruptionbanking.com/fintech-glossary/

https://www.imd.org/news/updates/fintech-a-glossary-to-understand-the-world-of-blockchain-and-cryptocurrencies/

https://www.investopedia.com/terms/o/open-kimono.asp

https://www.catalyst.org/2021/03/22/racism-misogyny-asian-american-women-workplace/

https://www.bamboohr.com/hr-glossary/onboarding

https://www.walkme.com/glossary/customer-onboarding/

https://www.helpscout.com/blog/customer-onboarding

https://www.investopedia.com/terms/p/point-of-sale.asp

https://www.primaseller.com/knowledge-base/what-is-pos-point-of-sale/

https://p2pmarketdata.com/blog/p2p-lending-explained/

https://corporatefinanceinstitute.com/resources/knowledge/finance/peer-to-peer-lending/

https://whatis.techtarget.com/definition/P2P-lending-peer-to-peer-lending

https://www.6dg.co.uk/blog/uk-financial-regulatory-authorities/

https://www.centralbank.ie/consumer-hub/explainers/what-is-financial-regulation-and-why-does-it-matter

https://www.leasinglife.com/news/industry-news/what-is-financial-regulation/

https://www.investopedia.com/terms/r/roboadvisor-roboadviser.asp

https://www.businessinsider.com/what-is-a-robo-advisor?r=US&IR=T

https://www.thebalance.com/what-is-a-robo-advisor-and-how-do-they-work-4097134

https://www.forbes.com/advisor/investing/what-is-robo-advisor/

https://getnerdio.com/academy/10-popular-software-service-examples/

https://www.salesforce.com/in/saas/

https://www.techradar.com/uk/news/what-is-saas

https://www.ig.com/uk/news-and-trade-ideas/what-are-the-world-s-unicorn-companies–200415

https://www.beauhurst.com/blog/soonicorn-startups/

https://www.investopedia.com/terms/u/underbanked.asp

https://investinganswers.com/dictionary/u/underbanked

https://www.investopedia.com/terms/v/venturecapital.asp

https://hbr.org/1998/11/how-venture-capital-works

https://www.tutor2u.net/business/reference/finance-venture-capital