Financial Technology (FinTech) Questions and Answers

Financial Technology (FinTech) Questions and Answers FinTech (Financial Technology) refers to new tech that seeks to improve and automate the delivery and use of financial services venture capital money provided by large investors to finance new products and new businesses that have a good chance to be very profitable Cryto-currency A digital cash system that uses cryptography to secure the exchange financial transactions. Bitcoin the most popular and fastest-growing digital currency created in 2009 Blockchain A digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly Peer-to-peer (P2P) lending providing loans to individuals or businesses through online services that match lenders with borrowers NBFCs entities or institutions that provide certain bank-like and financial services but do not hold a banking license, and thus are unregulated by financial and state regulators default when a borrower fails to repay a portion or all of a debt guaranteed loan 3rd party guarantees to pay loan if borrower is unable to Market Capitalization refers to how much a company is worth as determined by the stock market and is defined as the total market value of all outstanding shares Affirm a company that seeks to cut credit card companies out of the online shopping process by offering a way for consumers to secure immediate, short-term loans for purchases Better Mortgage a company that seeks to streamline the home mortgage process with a digital-only offering Tala a company that offers digital financial services to help the traditionally underbanked borrow, save and grow their money FICO score Credit score from 300-850 that rates how likely a person is to fall 90 days behind in a payment. Robinhood a company that offers mobile-first brokerage experience for customers Lending Club a company that creates a market place connecting borrowers and lenders Kabbage a company that offers small business loans to help customers get working capital Robo-Advisor digital platforms that provide automated, algorithmic investment services with minimal human supervision Betterment a company that uses robo-advisor technology to recommend a portfolio and automate the investment process B2B a business that markets its products or services to other businesses. B2C the process in which businesses sell to consumers