If you are new to the world of finance, it can be hard to keep up with key finance and technology terms. Wavu Business’s fintech glossary closes this gap by bringing a list of finance terms together. Get your fintech dictionary at your fingertips. Fintech stands for ‘financial technology. As a financial technology company, Wavu Business is committed to guiding small businesses in managing money.
- The process of recording and analyzing financial transactions of a business. The Accounting process involves analyzing, reporting, and summarizing transactions. Common accounting reports include the income statement, cash flow statements, balance sheets, and stakeholder statements.
- Accounts Payable
- An accounts payable is a category of liability that represent money that should be paid to a small business by creditors. The accounts payable occurs when small businesses extend credit to businesses or buyers who have bought good without requiring immediate payment. Sometimes account payable is know as payables. In trade, account payables can be called trade payables.
- Agency MIS
- An agency management information system (MIS) is software that helps small businesses manage important information about their business. A management information system is very important if you want to get funding for your small business.
- Anti-Money Laundering (AML)
- Anti-money laundering (AML) are rules, processes and regulation that focus on preventing criminals from committing financial crimes. The increase of online banking has increase the risk of online financial crimes and thus strict AML have been implemented. Fintech have to follow strong AML regulations
- Automated Clearing House (ACH)
- ACH stands for electronic clearing house where payment orders are exchanged among financial institution through telecommunication networks and then cleared among the parties. All operations of an ACH are handled by a data warehouse or processing center. The ACH is common in credit and debit transfers. Sometimes it is used for checks.
- Central Bank Digital Currency (CBDC)
- The Central Bank Digital Currency is a digital form of money different from traditional money. Digital money is not held in traditional research or settlement accounts by the commercial bank but held in the form of a digital currency such as the bitcoin.
- Crowdfunding is the practice of funding businesses through other people. Crowdfunding is done through crowdfunding websites which allow the public to contribute monetary contributions to a project. Some common crowdfunding websites include GofundMe
- Fintech is the short form for Financial Technology. Fintech is a technology driven innovation in financial services that comes up with new business solutions, application and processes that affect financial market or increase financial service delivery.
- Online Banking
- Online banking is the digital version of the traditional bank. For example, Equity bank may fully provide their financial services online. Today, many banks offer banking services through their physical offices, the internet and mobile devices. Small business customers can access online banks 24/7, pay their bill automatically, manage their customers and track their expenses.
- Open Banking
- Open banking is a fintech practice that allows bank customers or account holds to share their account and transaction with third party service providers. For example, a customer for bank A may allow a small business lender to access their bank transaction information to make better decision. The main objective of open banking is to create financial solutions that are more accessible using innovation and data analytics.