CBFO Fintech Glossary

Financial technologies that create new expansions in the financial ecosystem are called "fintech" by shortening two words. The concept of fintech, which has become widespread in recent years, was introduced into Turkish with the suggestions and guidance of our Finance Office. In addition to financial technologies, there are many concepts when evaluated in terms of the technologies utilized and new business models. The content and scope of the study will be updated from time to time depending on the new terms that will emerge with the advances in financial technologies and the new meanings attributed to these terms.

Banking as a Service: A business model where non-bank institutions provide financial services to their customers by using the infrastructure and data of banks through APIs.

Blockchain: A network structure where users store encrypted data without the need for third parties and the data is updated through coding into blocks simultaneously in distributed centers.

Buy Now Pay Later: A type of short-term financing in which payments for consumption expenditures can be pay at a future date, usually without interest.

Central Bank Digital Currency: The blockchain-based digital currency issued by national central banks.

Crowdfunding: A system that enables many investors to come together to fund a company, idea or project.

Cryto Assets: Assets which are developed through distributed ledger and blockchain technologies, stored in virtual environments via encryption and processed in a decentralized manner..

Decentralized Finance: A finance ecosystem that is built on the blockchain without any connection to a centralized structure and includes financial services operating with smart contracts.

Digital Banking: Only-digital delivery of banking services.

Digital Wallet: Electronic wallet that can be used as a payment instrument where bank and prepaid card information is stored.

e-KYC: A method used to verify the identity of their customers in digital environments in adherance to legal requirements.

Embedded Finance: Offering financial products and services by non-financial institutions by integrating them into their products and services.

Fintech: The institution or product that offers financial services via innovative, complementary, and accelerating business models using digital technologies.

Insurtech: The institution or product that offers insurance services via innovative, complementary, and accelerating business models using digital technologies.

Non Fungible Token: Blockchain-based digital asset which is unique and not fungible.

Open Banking: An approach that aims to share data of banks with third parties through application programming interfaces.

Open Finance: An approach where financial data is open to third parties within certain rules and open banking is implemented in a way that covers all of the financial sector stakeholders.

P2P Lending: A type of financing that brings together borrowers and lenders on online platforms without the involvement of intermediary financial institutions.

Platform Banking: An approach where institutions, especially banks, offer nonfinancial services together with financial services on a platform.

Regulatory Sandbox: A structure that allows financial institutions and fintechs to conduct live experiments on newly developed products and services under the supervision of the regulatory authority before public release.

Robo Advisory: A digital application which makes investment recommendations to and enables portfolio management for users.