Finance is the one of the most fast-changing industries. “Cryptocurrency”, “mining”, “neobanks” - these financial terms are heard frequently, but what do they mean? We prepared a short vocabulary for future financial specialists to learn more about current trends and terminology.
Proximity Mobile Payment
Proximity Mobile Payment is a payment made in close distance without making any physical contact with a corresponding device, such as holding two phones near each other to transfer money between two friends or paying your metro ticket by holding your phone to a reader.
Cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its most endearing allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.
Bitcoin Mining is the process by which transactions are verified and added to the public ledger, known as the block chain, and also the means through which new bitcoin are released. Anyone with access to the internet and suitable hardware can participate in mining. The mining process involves compiling recent transactions into blocks and trying to solve a computationally difficult puzzle. The participant who first solves the puzzle gets to place the next block on the block chain and claim the rewards.
Ethereum is a decentralized software platform that enables SmartContracts and Distributed Applications (ÐApps) to be built and run without any downtime, fraud, control or interference from a third party. Ethereum is not just a platform but also a programming language (Turing complete) running on a blockchain, helping developers to build and publish distributed applications.
Open Banking is a system that provides a user with a network of financial institutions’ data through the use of application programming interfaces, better known as APIs. The Open Banking Standard defines how financial data should be created, shared and accessed.
Direct Payment is a type of preauthorized payment under which an account holder authorizes a bank to pay a fixed amount (such as mortgage payment or rent) or variable amounts (such as those called for in bills or invoices) directly to a landlord, bank, supplier or utility company at regular (usually monthly) intervals. See also standing order.
Voice Recognition is a technique in computing technology by which specialized software and systems are created to identify, distinguish and authenticate the voice of an individual speaker. This method of identification reduces the time of each client's phone call request to the bank approximately by 40-60 seconds (which are normally required to verify the passport data and the code word).
Robo-advisors are digital platforms that provide automated, algorithm-driven financial planning services with little to no human supervision. A typical robo-advisor collects information from clients about their financial situation and future goals through an online survey, and then uses the data to offer advice and/or automatically invest client assets.
Initial Coin Offering (ICO)
An Initial Coin Offering (ICO) is used by startups to bypass the rigorous and regulated capital-raising process required by venture capitalists or banks. In an ICO campaign, a percentage of the cryptocurrency is sold to early backers of the project in exchange for legal tender or other cryptocurrencies, but usually for Bitcoin.
The technological revolution of the internet changed the nature, scope, and competitive landscape of the financial services industry with digital disruption occurring at every level of international financial management operations.
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Definition source: www.investopedia.com