Fintech Flashcards
(26 cards)
What is Fintech
FinTech is a broad term that refers to the use of technology to improve, innovate, and automate the delivery and use of financial services.
Key Drivers of FinTech
-Technological Innovations
-Changing Consumer Demands
-Regulatory Environment
-Globalization
Key components of Fintech
-Payments and Money Transfers
-Lending and Crowdfunding
-Robo-Advisors and Wealth Management
-insurtech
-regtech
-blockchain and cryptocurrencies
What is insurtech
Use of technology to streamline and automate the insurance industry (e.g., Lemonade, Metromile)
What is regtech
Technology that helps financial institutions comply with regulations more efficiently (e.g., identity verification, transaction monitoring
Tends in fintech
-AI and Machine Learning:
-Digital Banking and Neobanks
-Embedded Finance
-Cryptocurrency and Blockchain Expansion
-Financial Inclusion
Applications of FinTech in Real-World Scenarios
-personal finance management
-investment platforms
-digital leading platforms
-blockchain based payments
-insurance
Challanges of Fintech
-data privacy and security
-anti money laundering
-licensing and compliance
-consumer protection
-smart contacts
Impact of fintech on traditional financial insitutions
-cost reduction
-collaboration and competition
-distruotion of traditial banking
Future outlook for Fintech
-increased intergration
-decentralized finance DeFi (removing the middle man)
-quantum computing and blockchain
Whats a neobank
Online only banking institutions
Blockchain?
Blockchain is a distributed ledger technology that enables data to be stored across a network of computers in a secure, transparent, and immutable manner.
Main features of blockchain?
-decentralisation
-transparency
-immutability (record of events and transactions)
-security
Cryptocurrencies
Cryptocurrencies are digital or virtual currencies that rely on blockchain technology for their operation
Examples of Cryptocurrencies
-bitcoin
-ethereum
-stablecoins
What is ripple and how does it work in the context of Fintech
Ripple is a block chain based payment protocol using XRP for fast, lower cost cross border transactions between banks
What is DeFi stand for and what does it enable?
Decentralized finance, allows lending and borrowing without a middle man via smart contracts
What is Aave ?
A decentralized lending platform that allows users to borrow and lend cryptocurrencies
What is the tokenisation of assets?
The process of creating digital tokens on a blockchain to represent ownership of real world assets
What is RealIT?
Platform that tokenised real estate properites, allowing fractional ownership through blockchains
What are smart contracts and how do they function?
self executing contract coded on a blockchain that execute automatically when conditions are met
Which blockchain is most associated with smart contracts and dApps?
Ethereum
What are security tokens?
digital tokens that represent ownership of assets like stocks or bonds
Benefits of blockchain and cryptrocurrenties in fintech
Efficiency and Cost Reduction
Financial Inclusion
Transparency and Security
Innovation in Financial Products
