Cracking the FinTech code: Key Terms you must know in 2025
In a world where you can send Money across borders in seconds, take a Loan from your phone, and manage all your Finances without stepping into a Bank—FinTech is no longer a buzzword. It’s a movement reshaping the way we experience Money.
But if you’ve ever found yourself lost in terms like API, KYC, or CBDC, you’re not alone.
In this article, we break down the Core Terminologies that drive this billion-dollar industry—and explain how they impact your daily life and the future of Finance.
Core FinTech Terminologies
These are the must-know concepts that form the backbone of most Financial Technologies:
1. API (Application Programming Interface)
Think of APIs as Digital bridges. they allow different Software Applications to talk to each other. In FinTech, APIs enable Banks to securely share your account data (with your permission) with apps that help you budget, Invest, or Transfer Money—powering innovations like open Banking.
2. KYC (Know Your Customer)
Before any Bank or app can offer you Financial services, they need to know who you are. That’s where KYC comes in. It’s the identity verification process (like submitting ID, address proof, or a selfie) that helps prevent Fraud, Money Laundering, and Scams.
3. AML (Anti-Money Laundering)
AML refers to the tools and rules Financial companies use to detect and stop Criminal Money activities. With growing Digital Transactions, FinTech firms rely on AI-driven systems to flag suspicious behavior and comply with global regulations.
4. P2P (Peer-to-Peer)
Ever lent Money to a friend directly? That’s P2P in real life. In FinTech, P2P platforms allow people to lend and borrow without a Bank in the middle—using Algorithms to match users, assess risk, and manage repayments. P2P lending is reshaping the way individuals think about loans, trust, and financial independence.
5. BaaS (Banking as a Service)
Thanks to BaaS, even non-Banks (like e-commerce sites or ride-hailing apps) can offer Financial services like wallets, Loans, or payments. Behind the scenes, licensed Banks provide the Infrastructure via APIs. It’s a win-win for innovation and customer convenience.
6. NeoBanks
NeoBanks are fully Digital Banks—no branches, no paperwork. they offer Mobile-first, user-friendly Banking experiences with features like instant account opening, real-time spending alerts, and lower fees. Perfect for the always-online generation.
Global FinTech Glossary: Terms that shape the worldwide system
While local apps and services are rapidly growing, the FinTech world is also deeply interconnected globally. Here are three terms every global citizen should know:
1. ISO (International Organization for Standardization)
ISO sets global standards for everything from currencies to cybersecurity. In FinTech, standards like ISO 20022 make sure messages between Financial systems are clear, secure, and consistent—essential for global payments and data integrity.
2. SWIFT (Society for Worldwide InterBank Financial Telecommunication)
If you’ve ever made a Bank Transfer across borders, it probably went through SWIFT. It’s a secure messaging system that connects over 11,000 Banks and institutions around the world, making international Money movement safe and standardized.
3. CBDC (Central Bank Digital Currency)
A CBDC is a government-issued Digital version of a country’s official currency. Unlike cryptocurrencies, it’s backed by the central Bank and regulated. Countries like India, China, and the UK are already testing or launching their own CBDCs to modernize the economy and improve Financial access.
Why Should You Care About these Terms?
Because FinTech is your Future.
Whether you're using a payment app, starting a Business, or Investing online, these Technologies affect your choices, your Money, and even your security.
From smoother Digital payments to smarter Financial tools and broader global inclusion—understanding this vocabulary gives you a real advantage
Trisha Kesarwani
Fintech Specialist
Asiatic In Corp
LinkedIn -
https://fs.blabigo.com/s/3mjdTRUA
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