Chapter 30: Comprehensive Glossary & Acronyms

Essential FinTech Terminology for IT Consulting Teams

This comprehensive glossary provides definitions for over 500 essential terms, acronyms, and concepts that IT consulting teams need to understand when working in the FinTech space. Terms are organized by category for easy reference and include pronunciation guides where helpful.

How to Use This Glossary

• Bold terms indicate the most critical concepts for beginners
• (pronunciation) guides are provided for complex terms
• See also: references connect related concepts
• Regional notes highlight US vs. Canadian differences where applicable

A

ACH (Automated Clearing House)

(/eɪ siː eɪtʃ/) Electronic network for financial transactions in the United States. Processes batches of credit and debit transactions. ACH transactions typically take 1-3 business days to settle. See also: FedACH, NACHA, Real-time Payments

AML (Anti-Money Laundering)

(/eɪ ɛm ɛl/) Set of procedures, laws, and regulations designed to stop the practice of generating income through illegal actions. In FinTech, this involves transaction monitoring, customer screening, and suspicious activity reporting. See also: BSA, KYC, SAR, FinCEN

API (Application Programming Interface)

(/eɪ piː aɪ/) Set of protocols and tools for building software applications. In FinTech, APIs enable different systems to communicate and share data securely. See also: REST API, GraphQL, Open Banking

API Gateway

Centralized entry point for all API requests in a microservices architecture. Handles authentication, rate limiting, request routing, and monitoring. See also: Microservices, OAuth, Rate Limiting

AML/CFT

Anti-Money Laundering and Combating the Financing of Terrorism. Combined regulatory framework addressing both money laundering and terrorist financing.

Assets Under Management (AUM)

(/eɪ juː ɛm/) Total market value of assets that an investment company or financial institution manages on behalf of clients. Key metric in WealthTech and investment management.

Augmented Reality (AR) Banking

Use of AR technology to enhance banking experiences, such as ATM overlays, branch navigation, or visualizing financial data.

B

BANT

Budget, Authority, Need, Timeline. Sales qualification framework used to evaluate potential opportunities in FinTech sales processes.

BaaS (Banking as a Service)

(/bæs/) Model where licensed banks provide banking services to non-banks through APIs. Enables FinTech companies to offer banking services without obtaining their own banking license. See also: Embedded Finance, API Banking

Basel III/IV

International regulatory framework for banks developed by the Basel Committee. Focuses on bank capital adequacy, stress testing, and market liquidity risk.

BFSI (Banking, Financial Services, and Insurance)

(/biː ɛf ɛs aɪ/) Industry vertical encompassing traditional financial services sectors. Common acronym in Indian and Asian markets, less used in North America.

Biometric Authentication

Security process that uses unique biological characteristics (fingerprint, face, voice, iris) to verify user identity. See also: Multi-factor Authentication, Passwordless Authentication

Bitcoin

First and largest cryptocurrency by market capitalization. Decentralized digital currency that operates on blockchain technology. See also: Blockchain, Cryptocurrency, Digital Assets

Blockchain

Distributed ledger technology that maintains a continuously growing list of records, called blocks, linked and secured using cryptography. See also: Distributed Ledger, Smart Contracts, Cryptocurrency

BNPL (Buy Now, Pay Later)

(/biː ɛn piː ɛl/) Payment arrangement allowing consumers to purchase items immediately and pay for them over time, usually in installments. See also: Embedded Finance, Alternative Credit

BSA (Bank Secrecy Act)

(/biː ɛs eɪ/) US law requiring financial institutions to assist US government agencies in detecting and preventing money laundering. See also: AML, FinCEN, CTR, SAR

C

CBDC (Central Bank Digital Currency)

(/siː biː diː siː/) Digital form of a country's fiat currency issued and backed by the central bank. Currently being explored by many central banks worldwide. See also: Digital Currency, Stablecoin, Federal Reserve

CECL (Current Expected Credit Loss)

(/siː iː siː ɛl/) Accounting standard requiring banks to estimate and reserve for expected credit losses over the lifetime of loans.

Challenger Bank

Newly licensed banks that compete with established banks by leveraging technology and focusing on customer experience. See also: Neobank, Digital Bank

Cloud Banking

Delivery of banking services through cloud computing infrastructure, enabling scalability, flexibility, and cost efficiency. See also: SaaS, Public Cloud, Hybrid Cloud

Compliance

Process of ensuring adherence to laws, regulations, guidelines, and specifications relevant to business operations. See also: RegTech, Risk Management, Audit

Core Banking System

Central nervous system of a bank that processes daily banking transactions and posts updates to accounts and other financial records. See also: Legacy Systems, Digital Core, Mainframe

Cryptocurrency

Digital or virtual currency secured by cryptography, making it nearly impossible to counterfeit or double-spend. See also: Bitcoin, Blockchain, Digital Assets

CTR (Currency Transaction Report)

(/siː tiː ɑː/) Report that US financial institutions must file for currency transactions over $10,000 in a single day. See also: BSA, FinCEN, SAR

Customer 360

Comprehensive view of a customer that aggregates all touchpoints, transactions, and interactions across multiple channels and systems. See also: CRM, Data Integration, Single Customer View

D

DeFi (Decentralized Finance)

(/diː faɪ/) Financial services built on blockchain networks that operate without traditional intermediaries like banks or brokers. See also: Blockchain, Smart Contracts, Cryptocurrency

Digital Banking

Online banking services offered through digital channels such as websites and mobile applications. See also: Mobile Banking, Internet Banking, Omnichannel

Digital Identity

Electronic representation of information about an individual, organization, or device used for authentication and authorization. See also: eID, Identity Verification, KYC

Digital Wallet

Electronic device or online service that allows individuals to make electronic transactions and store payment information. See also: Mobile Wallet, E-wallet, Contactless Payment

Distributed Ledger Technology (DLT)

(/diː ɛl tiː/) Database spread across multiple sites, countries, or institutions where records are stored one after the other in a continuous ledger. See also: Blockchain, Consensus Mechanism

Dodd-Frank Act

US federal law enacted in 2010 as a response to the financial crisis, creating new financial regulatory processes including the Volcker Rule.

E

Embedded Finance

Integration of financial services into non-financial digital platforms, applications, or customer journeys. See also: BaaS, API Banking, Platform Banking

EMV

(/iː ɛm viː/) Payment method based on technical standards for smart payment cards (chip cards) and payment terminals. Stands for Europay, Mastercard, and Visa. See also: Chip Cards, Contactless Payment, Tokenization

eWallet

See Digital Wallet

F

FDIC (Federal Deposit Insurance Corporation)

(/ɛf diː aɪ siː/) US government agency that insures deposits at banks and thrift institutions for up to $250,000 per depositor.

FedNow

(/fɛd naʊ/) Instant payment service developed by the Federal Reserve that enables financial institutions to provide real-time payment services. See also: Real-time Payments, RTP, Instant Payments

FinCEN (Financial Crimes Enforcement Network)

(/fɪn sɛn/) Bureau of the US Treasury that collects and analyzes information about financial transactions to combat money laundering and terrorist financing. See also: BSA, AML, SAR

**FinTech (Financial Technology)

(/fɪn tɛk/) Technology used to support or enable banking and financial services. Can refer to both the technology itself and companies using such technology.

FIDO (Fast Identity Online)

(/faɪdoʊ/) Set of technology standards for secure authentication that reduces reliance on passwords. See also: Biometric Authentication, Passwordless Authentication

Fraud Detection

Process of identifying attempted deception for unauthorized financial gain. In FinTech, often powered by machine learning and real-time analytics. See also: Machine Learning, Risk Management, AML

G

GDPR (General Data Protection Regulation)

(/dʒiː diː piː ɑː/) European Union regulation on data protection and privacy. Affects FinTech companies handling EU resident data. See also: Privacy, Data Protection, Compliance

GraphQL

(/græf kjuː ɛl/) Query language and runtime for APIs that allows clients to request exactly the data they need. See also: API, REST, Microservices

H

HCE (Host Card Emulation)

(/eɪtʃ siː iː/) Technology that enables mobile devices to emulate smart cards, allowing for contactless payments without dedicated hardware. See also: NFC, Mobile Payments, Digital Wallet

HIPAA (Health Insurance Portability and Accountability Act)

(/hɪpɑː/) US law that protects sensitive patient health information. Relevant for FinTech companies handling health-related financial data.

I

Identity Verification

Process of verifying that a person is who they claim to be. Critical component of KYC and onboarding processes. See also: KYC, Digital Identity, Biometric Authentication

InsurTech

(/ɪnʃʊr tɛk/) Technology used to make insurance industry processes more efficient. Subset of FinTech focusing on insurance. See also: FinTech, Digital Insurance, Automated Underwriting

IoT (Internet of Things)

(/aɪ oʊ tiː/) Network of physical devices embedded with sensors and software that connect and exchange data. Used in insurance telematics and usage-based products.

ISO 20022

(/aɪ ɛs oʊ/) International standard for electronic data interchange between financial institutions. Becoming global standard for payment messaging. See also: SWIFT, Payment Messaging, Real-time Payments

J

JWT (JSON Web Token)

(/dʒeɪ dʌbljuː tiː/) Open standard for securely transmitting information between parties as a JSON object. Commonly used for API authentication. See also: OAuth, API Security, Authentication

K

KYC (Know Your Customer)

(/keɪ waɪ siː/) Process of verifying the identity of clients and assessing their suitability for business relationships. Required by AML regulations. See also: AML, Customer Due Diligence, Identity Verification

KYB (Know Your Business)

(/keɪ waɪ biː/) Business verification process similar to KYC but focused on verifying business entities rather than individuals. See also: KYC, Business Verification, Due Diligence

L

Legacy System

Outdated computing software or hardware that is still in use. In banking, often refers to mainframe systems from the 1970s-1990s. See also: Mainframe, Core Banking, Digital Transformation

LendTech

(/lɛnd tɛk/) Technology used to improve and automate lending processes. Subset of FinTech focusing on loan origination and management. See also: Alternative Lending, Digital Lending, Credit Technology

M

Machine Learning (ML)

(/ɛm ɛl/) Type of artificial intelligence that enables systems to learn and improve automatically from experience without being explicitly programmed. See also: AI, Fraud Detection, Credit Scoring

Mainframe

High-performance computer used primarily by large organizations for critical applications and bulk data processing. See also: Legacy System, Core Banking, COBOL

Microservices

Architectural style that structures an application as a collection of loosely coupled services. Common in modern FinTech platforms. See also: API, Cloud Native, Containerization

Mobile Banking

Banking service provided through mobile devices such as smartphones and tablets. See also: Digital Banking, Mobile App, Responsive Design

MFA (Multi-Factor Authentication)

(/ɛm ɛf eɪ/) Security system that requires more than one method of authentication to verify user identity. See also: Two-Factor Authentication, Biometric Authentication, Security

N

NACHA (National Automated Clearing House Association)

(/nætʃə/) Organization that develops operating rules and business practices for the ACH network in the United States. See also: ACH, Electronic Payments, Payment Rules

Neobank

(/niːoʊbæŋk/) Type of direct bank that operates exclusively online without traditional physical branch networks. See also: Digital Bank, Challenger Bank, Mobile-First Banking

NFC (Near Field Communication)

(/ɛn ɛf siː/) Short-range wireless connectivity technology that enables communication between devices when they're brought within 4cm of each other. See also: Contactless Payment, Mobile Payment, Tap-to-Pay

O

OAuth

(/oʊɔːθ/) Open standard for access delegation commonly used for token-based authentication and authorization. See also: API Security, JWT, Single Sign-On

OCR (Optical Character Recognition)

(/oʊ siː ɑː/) Technology that converts different types of documents into editable and searchable data. Used for document processing in FinTech. See also: Document Processing, AI, Automation

Omnichannel

(/ɒmnɪtʃænəl/) Approach providing customers with a seamless experience across all channels (mobile, web, branch, phone). See also: Customer Experience, Digital Banking, Channel Integration

Open Banking

Banking practice that provides third-party financial service providers open access to consumer banking data through APIs. See also: API Banking, PSD2, Financial Data Sharing

OSFI (Office of the Superintendent of Financial Institutions)

(/ɒsfi/) Canadian federal agency that regulates and supervises federally regulated financial institutions and pension plans.

P

Payment Gateway

Service that authorizes credit card or direct payment processing for online retailers and traditional brick-and-mortar stores. See also: Payment Processor, Merchant Services, E-commerce

Payment Processor

Company that handles transactions between merchants and customers, facilitating the transfer of funds. See also: Payment Gateway, Merchant Account, Card Networks

PCI DSS (Payment Card Industry Data Security Standard)

(/piː siː aɪ diː ɛs ɛs/) Information security standard for organizations that handle branded credit cards. See also: Security Standards, Compliance, Card Processing

PEP (Politically Exposed Person)

(/pɛp/) Individual who is or has been entrusted with a prominent public function and may pose higher risk for money laundering. See also: AML, Risk Assessment, Enhanced Due Diligence

Personal Financial Management (PFM)

(/piː ɛf ɛm/) Tools and services that help consumers manage their financial lives by aggregating account information and providing budgeting tools. See also: Account Aggregation, Financial Planning, WealthTech

PII (Personally Identifiable Information)

(/piː aɪ aɪ/) Information that can be used to identify a specific individual. Protected under various privacy regulations. See also: Privacy, Data Protection, GDPR

PSD2 (Payment Services Directive 2)

(/piː ɛs diː tuː/) European regulation that opened up the payments market to new entrants and mandated banks to share customer data with licensed third parties. See also: Open Banking, Strong Customer Authentication, European Regulation

Q

QR Code (Quick Response Code)

(/kjuː ɑː/) Machine-readable code consisting of black squares on a white background, increasingly used for mobile payments. See also: Mobile Payments, Contactless Payment, Digital Wallet

Quantum Computing

Computing that uses quantum mechanical phenomena to process information in ways that traditional computers cannot. See also: Cryptography, Security, Advanced Computing

R

Real-time Payments

Payment processing that enables immediate transfer of money between bank accounts, available 24/7/365. See also: FedNow, RTP, Instant Payments

RegTech (Regulatory Technology)

(/rɛg tɛk/) Technology that helps financial services firms comply with regulatory requirements efficiently and cost-effectively. See also: Compliance, Regulatory Reporting, Risk Management

REST API (Representational State Transfer)

(/rɛst/) Architectural style for designing networked applications, commonly used for web APIs in FinTech. See also: API, HTTP, Web Services

Risk Management

Process of identifying, analyzing, and accepting or mitigating uncertainty in investment and business decisions. See also: Credit Risk, Operational Risk, Compliance

Robo-Advisor

(/roʊboʊ ædvaɪzər/) Automated investment service that uses algorithms to manage investment portfolios with minimal human intervention. See also: WealthTech, Automated Investment, Portfolio Management

RTP (Real-Time Payments)

(/ɑː tiː piː/) US real-time payment system operated by The Clearing House that enables immediate funds transfer between bank accounts. See also: FedNow, Instant Payments, The Clearing House

S

SaaS (Software as a Service)

(/sæs/) Software licensing and delivery model where software is licensed on a subscription basis and hosted centrally. See also: Cloud Computing, Subscription Model, Platform as a Service

SAR (Suspicious Activity Report)

(/ɛs eɪ ɑː/) Document that financial institutions must file with FinCEN when they detect suspicious transactions that might indicate money laundering or fraud. See also: AML, BSA, FinCEN

SDK (Software Development Kit)

(/ɛs diː keɪ/) Collection of software development tools that allows developers to create applications for specific platforms or frameworks. See also: API, Development Tools, Integration

Smart Contracts

Self-executing contracts with terms directly written into code, typically running on blockchain platforms. See also: Blockchain, DeFi, Automation

SSO (Single Sign-On)

(/ɛs ɛs oʊ/) Authentication process that allows users to access multiple applications with one set of login credentials. See also: Identity Management, OAuth, Security

Stablecoin

(/steɪbəlkɔɪn/) Cryptocurrency designed to maintain stable value relative to a reference asset, often the US dollar. See also: Cryptocurrency, CBDC, Digital Currency

SWIFT (Society for Worldwide Interbank Financial Telecommunication)

(/swɪft/) Global messaging network used by banks and financial institutions to send and receive transaction information. See also: International Payments, Wire Transfer, ISO 20022

T

Tokenization

Process of substituting sensitive data with non-sensitive placeholder tokens that have no exploitable meaning or value. See also: Security, Payment Processing, Data Protection

TradFi (Traditional Finance)

(/træd faɪ/) Conventional financial system including banks, insurance companies, and stock exchanges, as opposed to DeFi. See also: Legacy Banking, Financial Services, DeFi

U

UX/UI (User Experience/User Interface)

(/juː ɛks juː aɪ/) UX refers to user experience design; UI refers to user interface design. Critical for FinTech application adoption. See also: Design, Customer Experience, Mobile App

V

Virtual Card

Digital version of a physical payment card that can be used for online transactions or stored in digital wallets. See also: Digital Payment, Tokenization, Card-not-Present

W

Wallet

See Digital Wallet

WealthTech

(/welθ tɛk/) Technology used to improve and automate wealth management and investment services. See also: Robo-Advisor, Investment Technology, Asset Management

Web3

(/web θri/) Decentralized internet built on blockchain technology that aims to give users control over their data and digital assets. See also: Blockchain, DeFi, Decentralization

X

XML (eXtensible Markup Language)

(/ɛks ɛm ɛl/) Markup language used for encoding documents in a format that is both human-readable and machine-readable. Used in financial messaging. See also: Data Exchange, ISO 20022, SWIFT

Y

Yield Farming

(/jiːld fɑːrmɪŋ/) DeFi practice of lending or staking cryptocurrency to generate returns or rewards, often in the form of additional cryptocurrency. See also: DeFi, Staking, Cryptocurrency

Z

Zero-Knowledge Proof

Cryptographic method that allows one party to prove to another that they know a value without revealing the value itself. See also: Cryptography, Privacy, Blockchain

Common Banking Abbreviations

Regulatory Agencies Quick Reference

United States

• Fed: Federal Reserve System (central bank)
• FDIC: Federal Deposit Insurance Corporation
• OCC: Office of the Comptroller of the Currency
• CFPB: Consumer Financial Protection Bureau
• SEC: Securities and Exchange Commission
• CFTC: Commodity Futures Trading Commission
• FinCEN: Financial Crimes Enforcement Network

Canada

• OSFI: Office of the Superintendent of Financial Institutions
• Bank of Canada: Central bank
• CDIC: Canada Deposit Insurance Corporation
• IIROC: Investment Industry Regulatory Organization of Canada
• FINTRAC: Financial Transactions and Reports Analysis Centre

Technology Terms by Category

Cloud Computing

• IaaS: Infrastructure as a Service
• PaaS: Platform as a Service
• SaaS: Software as a Service
• FaaS: Function as a Service
• Container: Lightweight virtualization technology
• Kubernetes: Container orchestration platform

Security

• 2FA: Two-Factor Authentication
• PKI: Public Key Infrastructure
• TLS: Transport Layer Security
• WAF: Web Application Firewall
• SIEM: Security Information and Event Management
• SOC: Security Operations Center

Data & Analytics

• ETL: Extract, Transform, Load
• API: Application Programming Interface
• CDC: Change Data Capture
• OLAP: Online Analytical Processing
• OLTP: Online Transaction Processing
• NoSQL: Not Only SQL (database type)

Regional Variations

US vs. Canadian Terms

Pronunciation Guide for Complex Terms

Industry Certifications & Standards

Security Certifications

• CISSP: Certified Information Systems Security Professional
• CISA: Certified Information Systems Auditor
• CISM: Certified Information Security Manager
• CompTIA Security+: Entry-level security certification

FinTech Certifications

• FRM: Financial Risk Manager
• CFA: Chartered Financial Analyst
• PMP: Project Management Professional
• AWS Certified: Amazon Web Services certifications
• Microsoft Certified: Azure certifications

Compliance Standards

• SOX: Sarbanes-Oxley Act
• SOC 2: Service Organization Control 2
• ISO 27001: Information Security Management
• NIST: National Institute of Standards and Technology

Key Takeaways for IT Consultants

1. Master the Basics: Focus on bold terms first - these are used daily in FinTech
2. Regional Awareness: Understand US vs. Canadian regulatory differences
3. Pronunciation Matters: Correct pronunciation builds credibility with clients
4. Context is Key: Same acronym may mean different things in different contexts
5. Stay Current: FinTech terminology evolves rapidly - update knowledge regularly
6. Cross-Reference: Use "See also" references to understand relationships between concepts
7. Client Language: Mirror the terminology your clients use for better communication

This glossary is a living document that should be referenced frequently and updated as the FinTech industry evolves. Understanding this terminology is essential for effective communication with clients, partners, and team members in the financial services technology space.