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Glossary

AES

Advanced Encryption Standard (AES) is the currently defined standard for encryption of digital data. Since 2005, sensitive and confidential data is encrypted via a special algorithm which so far has not been able to be attacked. This method fulfills the highest level of confidentiality, so that even governmental documents can be secured with this method.

API

Application Programming Interface (API) is an interface that allows other programs to be integrated into an existing system. As an application programming interface, it is applied for example by Microsoft Windows so that external companies can develop and implement software for the operating system.

Big Data

The term big data refers to large amounts of data that cannot be evaluated through traditional data processing methods due to their size and complexity or their rapid changes. Instead, they are saved, processed and evaluated with special solutions with the aim of linking together very diverse data and to gain new insights. 

Bitcoin

Bitcoin is a digital currency that is based on an independent and decentralized payment system. By means of the Bitcoin Core software, participants can conduct transactions with bitcoins in a P2P network. Because bitcoin is a purely online currency, goods can be traded and services can be paid across borders. There is no central financial institution that generates bitcoins and is involved in payment transactions. Transactions with bitcoins are only administered by means of a database called blockchain. The value of bitcoins is thus determined by supply and demand.

Blockchain

Blockchain is a decentralized database that administers transactions with the digital currency bitcoin. Here, single or multiple transactions are bundled into data blocks and validated by means of checksums. The joint data blocks form the block chain. Over the Bitcoin Core software all members of the community can download and regularly update the database.

CFT / CTF

Combating the Financing of Terrorism (CFT) or Counter-Terrorist Financing (CTF) refers to guidelines and laws that have been implemented in order to prevent and uncover the illegal purchasing of assets. The focus is on crimes of global terrorism and money laundering. It involves Anti Money Laundering (AML): a set of processes, laws and regulations to fight money laundering.

Cloud Computing

In Cloud Computing, IT infrastructures, platforms and software are offered as a service over a network (e.g. over the Internet). Here, the actual system is saved in a distant data center, but can be used from the local workplace computers. One aspect of this technology is Software as a Service (SaaS), in which customers use software offered by the data center for their own purposes. Fintechs use this in the area of electronic payment transactions; as new security standards are continuously being defined, purchasing specific software does not pay off. Disaster Recovery as a Service (DRaaS) is also possible over Cloud Computing.

Collaborative Finance

Collaborative Finance arose from the principle of Collaborative Consumption and the Sharing Economy. The growing networks and development of communication through the Internet makes it possible for private persons as well as organizations and institutions to share, swap, rent and trade products and services. Through sharing information, tailored, personal financial solutions can be formed. It is common for Collaborative Finance to exhibit a high level of personalized credit transactions (e.g. micro loans) and P2P transactions.

Crowdfunding

Crowdfunding is a new type of funding in which many smaller monetary amounts are collected from Internet users over social networks, platforms, blogs, etc. in order to finance projects. To do so, the capital needed for the project is defined and uploaded for crowdfunding. Capital is then collected over a certain period in order to subsequently implement the project if the targeted amount has been reached.

Digital Native

A digital native is a person who has grown up in the digital world. As opposed to the digital immigrant, the digital native already knew the digital world as a child.

Disaster Recovery Site

A Disaster Recovery Site (DR Site) is used by companies and organizations that are dependent on their digital data and IT infrastructure to a large degree. If the internal system breaks down or becomes temporarily unusable, the DR Site can then be used as an alternative backup. It means that the business operations can be continued and no severe losses are incurred. Because it is relatively expensive to set up and maintain this kind of system, the service already exists: Disaster Recovery as a Service (DRaaS).

eIDV

Electronic Identity Verification (eIDV) is another term for an identity check. By means of an Internet-based system, the identity of business partners, for example, can be verified with little effort.

EMV

EMV stands for the three companies Europay International, MasterCard and VISA. These companies developed the standard that credit and debit cards use for settling transactions with a microchip rather than the former magnetic stripe. The advantages of this change include improved security due to data encryption and the possibility to use further features. The EMV standard allows payment cards to be used across borders.

IPv6 / IPng

Internet Protocol version 6 (IPv6), also known as Internet Protocol next generation (IPng) is one of the processes for transmitting data, especially over the Internet, that has been standardized since 1998 by the Internet Engineering Task Force (IETF).

Cryptocurrency

Cryptocurrencies refer to digital means of payment that can be traded and paid globally over the Internet. Through these forms of digital currency, methods of cryptography are used in order to encrypt the data behind the currency and thus to ensure its security and reliability. One example of this kind of currency is bitcoin.

MasterCard

An American, multinational financial services corporation with its headquarters in the MasterCard International Global Headquarters in Purchase, New York, Westchester County, United States.

NFC

NFC stands for Near Field Communication. This technology facilitates the exchange of data over a short distance between a NFC chip and a corresponding reader. It is especially used for micropayment and mobile payment by means of credit cards and smartphones.

Open source software

Open Source Software (OSS) describes a freely available software. It can be used by several users at the same time and is not linked to an end device.

Payment gateway

Payment Gateway facilitates the online payment of goods and services with a credit card. In doing so, it presents an interface between the PoS system of a vendor, the purchaser and their bank.

Robo-advisor

Robo-advisors are fintech companies that offer online asset management services. Through the high level of automation and standardization in terms of advisory services, they are generally less expensive than human financial advisors. However, they are restricted in the customization of their advisory services as they skip the associated advice and interaction with customers that a personal advisor can provide. Through the sole use of software programs and entered customer data, a specific investment strategy is developed and presented to the customer.

Screen scraping

Screen Scraping refers to a process of extracting and evaluating data from texts on a computer monitor so that it can be displayed on another end device. Some fintech companies that offer banking apps use this process in order to show account data from app users on various end devices.

Social trading

The exchange of knowledge, opinions and experiences about securities, individual investment decisions and the associated purchasing or sales strategies on specialized platforms and social networks is referred to as social trading. Community members are able to make more tailored decisions and reach assessments or even to copy complete strategies for ones own investments.

Tokenization

Tokenization is used in data protection. Here, confidential data elements are replaced by a token and can thus be transferred securely. The token does not have any external or significant meaning or value. However, it is possible to convert the token back to the original data by means of the tokenization system.

Visa

Visa U.S.A. is one of the leading payment service providers worldwide and is backed by a secure payment network. Visa connects more than 13,300 financial institutions, 6.9 million accepted transaction points and 520 million cards.