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COVER
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The Concise
FINTECH COMPENDIUM
Patrick Schueffel
Copying and reprinting
. This booklet contains proprietary information,
which is protected by copyright. All rights are reserved. However,
material in this booklet may be reproduced by any means for
educational and scientific purposes without fee or permission with the
exception of reproduction by services that collect fees for delivery of
documents. This permission is subject to the following conditions: (i) the
customary acknowledgment of the source is given; (ii) the material may
not be used for any commercial purposes without the author’s prior
written consent; (iii) the copies must retain any copyrights or other
intellectual property notices contained in the original material. This
consent does not extend to other kinds of copying for advertising or
promotional purposes, or for resale. Requests for permission for
commercial use of material should be addressed to the School of
Management, Institute of Finance, Professor Patrick Schueffel, Chemin
du Musée 4, 1700 Fribourg, Switzerland. Requests can also be made by
e-mail to: patrick.schueffel@hefr.ch
© 2017 by Patrick Schueffel. All rights reserved.
School of Management Fribourg (HEG-FR)
HES-SO // University of Applied Sciences and Arts Western Switzerland
Published in Switzerland
Visit the School of Management Fribourg home page at
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PREFACE
To be meaningful and effective, discussions require sound
definitions. Fintech as a rather young field of business and
academic endeavor has not yet yielded commonly accepted
definitions. This booklet attempts to help building a definitional
foundation for this new field by providing definitions for terms
from the Fintech sphere, but also from its constituent subjects
Finance and Technology. It is the result of many questions I
received from students, scholars, and practitioners alike and
the discussions emerging from these inquiries. Yet, the reader
of this booklet should always bear two things in mind: First,
definitions are never right or wrong per se, but only useful or
less useful in a certain context. Secondly, definitions are never
set in stone but evolve over time. Accordingly, we can also
expect the definitions provided in this booklet to be challenged
over time and depending on the contexts are they being used
in.
Finally, a word of thanks to my colleagues and friends from the
School of Management Fribourg, Rico Baldegger, Paul Loeffler
and Nicolas Steiner, who patiently discussed Fintech topics with
me and generously shared their insights. With such excellent
sparring partners, any errors that remain in this booklet are
obviously my own.
Patrick Schueffel
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1
accelerator
(startup
accelerator, seed
accelerators)
An accelerator is a time-limited, cohort-
based program, supporting > startup
companies in their business endeavors. the
program typically includes mentorship and
educational components and is generally
concluded by a public > pitch event or
demo day for potential investors.
agile
Agile is a set of principles for software
development. When applying these
principles solutions evolve through the
collaborative effort of self-organizing
cross-functional teams. Agile promotes
iterative work cadences and empirical
feedback and thus encourages rapid and
flexible response to change.
algorithm
An algorithm is a set of rules or a
procedure to be followed for solving a
mathematical problem.
Altfi (alternative
finance)
Altfi is a term describing financial channels,
processes and instruments that have
developed outside of the conventional
finance system comprising regulated banks
and capital markets.
AML (anti-money
laundering)
AML is a set of measures, laws and/or
regulations designed to prohibit the
practice of > money laundering.
2
angel investor
(business angel)
An angel investor is an affluent or high net
worth individual who provides early capital
for a business > startup, usually in
exchange for convertible debt or
ownership equity. Oftentimes this idivdual
also provided knowledge and contacts for
the start-up.
API (application
programming
interface)
An API is a set of functions and protocols
for building application software. It defines
methods of communication between
various software components and provides
access to data of an operating system,
application, or other service. It facilitates
developing computer programs by
providing building blocks which can then
be assembled by the developer.
artificial
intelligence (AI)
Artificial intelligence (AI) is the ability of
computer systems to perform tasks
normally associated with the aptitudes of
intelligent beings, such as learning and
generalizing or even reasoning and
interpreting; these abilities enable systems
to accomplish complex tasks such as visual
perception, speech recognition, decision-
making, or translation between languages.
augmented reality
(AR)
Augmented reality is an enhanced version
of the physical, real-world reality of which
elements are superimposed by computer-
generated or extracted real-world sensory
3
input such as sound, video, graphics or
haptics.
B2B (business to
business)
B2B is a characterization for a type of
business arrangement or transaction that
exists between businesses.
B2C (business to
consumer)
B2C is a characterization for a type of
business arrangement or transaction that
exists between a business and an
individual consumers or clients.
BaaS [1]
(banking as a
service)
Banking as a service is an end-to-end
process ensuring the comprehensive
execution of a banking service provided
over the Internet. Such a service is typically
available on demand and is carried out
within a given timeframe.
BaaS [2]
(Blockchain as a
service)
Blockchain as a service is a software
licensing and Internet based delivery
model in which centrally hosted software
is licensed on a subscription basis that
enables companies to build Blockchain
applications.
4
banking as a
platform
Banking as a platform is a concept which
allows independent Fintech firms to
provide their services in a similar fashion
as bank-end banking systems. These
services then typically integrate seamlessly
via > APIs into the existing back-office of
incumbent banks.
beacon
A beacon is a small Bluetooth device which
is used by vendors, merchants, and banks
etc. to send information such as offers,
promotions, coupons to the mobile
devices of (potential) customers passing by
in close proximity.
big data
Big data is a term for extremely large or
complex data sets that organizations can
mine and analyze for their gains with
specific data processing software.
biometrics
Biometrics is the process of measuring and
analyzing a person's unique physical or
behavioral characteristics as a means of
verifying personal identity.
Bitcoin
Bitcoin is a > Blockchain based >
cryptocurrency and a > digital payment
system invented by an unknown in 2008.
5
Bitcoin mining
Bitcoin mining is the process of creating
and releasing new > Bitcoin currency. This
is done by verifying and adding
transactions to the > Blockchain as rewards
for doing computational work.
Blockchain
The Blockchain is a publicly accessible >
distributed ledger that was initially
designed and implemented to enable >
Bitcoin transactions. It is a piece of IT
infrastructure that serves as a database
which is used to keep a continuously
growing list of records, so called blocks.
boot-strapping
Bootstrapping is a financing process that is
self-reliant with as little as external funding
as possible, apart from > friends and
family.
business model
A business model is the architecture
describing the core elements of how an
organization generates and delivers value.
business plan
A business plan is a document prepared by
a company's management stating the
firm's near-term business objectives and
the financial, marketing, and operational
reasoning underpinning it.
6
chatbot
A chatbot is a computer program which is
designed to simulate conversation with
human users via auditory or textual
methods, oftentimes over the Internet.
cloud computing
Cloud computing is the practice of using a
network of remote servers hosted on the
Internet to store, manage, and process
data, rather than a local server or a
personal computer.
cockroach
A cockroach is a company that builds
slowly and steadily from founding
onwards. It pays particular attention to
revenues and profits and sees to it that
costs are kept low so that it grows
particularly resilient from a financial point
of view.
collaborative
finance
Collaborative finance is a category of
financial transactions, such as >
crowdfunding, > P2P lending, > P2P
insurance that directly occur between
individuals and without using traditional
financial institutions as intermediaries.
Collaborative finance contributes to the >
democratization of finance
7
Colored Coin
A Colored Coin is an expression describing
a set of methods for representing and
managing real world assets using the >
Bitcoin > Blockchain infrastructure.
comparison site
A comparison site is a Website that
compares the scope and price of a
particular product or service across
different providers.
corporate venture
capital (CVC)
Corporate venture capital is a > venture
capital investment made by a corporation
or its investment entity directly in external
> startup companies.
crowdsourcing
Crowdsourcing is the practice of obtaining
needed services, ideas, or content by
soliciting contributions from a group of
people, oftentimes from an online
community via the Internet.
crowdfunding
Crowdfunding is one specific form of >
Crowdsourcing where funding for a project
or business is raised from a number of
8
people, oftentimes via campaigns
launched via the Internet.
crowdlending
see > P2P lending
cryptocurrency
(math based
currency)
A cryptocurrency is a > digital currency in
which > encryption techniques are used to
control the generation of units of currency
and verify the transfer of funds, operating
independently of one single central unit.
Cryptocurrency businesses oftentimes
raise money through > ICOs.
cybersecurity
Cybersecurity are the measures,
technologies, processes, and practices
taken to protect a computer or computer
system against unauthorized access or
attack or damage.
data aggregation
Data aggregation is the process of
gathering and refining information and
expressing them in a summary form.
9
democratization of
finance
Democratization of finance is a term
describing the process by which financial
services and products become more
accessible to more people.
digital challenger
bank
A digital challenger bank is a bank that
significantly changes the way clients
experience and procure banking services
by the means of > digitalization and thus
challenges traditional banks.
digital currency
(electronic money,
digital money)
A digital currency is a type of currency that
is non-physical (i.e. no banknotes and coins
exist thereof) and which can only be
transmitted via electronic means, typically
allowing for instantaneous transactions
and borderless transfer of ownership.
digital money
see > digital currency
Digital Native
A digital native is a person born or brought
up after the widespread adoption of digital
technology and thus familiar with
computers and the Internet from an early
age.
10
digital payment
A digital payment is a computer-based
transaction of money authorized
electronically on an electronic device.
digital wallet
(mobile wallet,
mWallet)
A digital wallet is an electronic device that
stores payment and authentication
information and thus permits an individual
to make > electronic payments and/or >
mobile payments. By using digital wallets
users can purchase items on-line with a
computer or use smartphones to purchase
something at a store. Some digital wallets
also permit money transfers among users.
digitalization
Digitalization describes the act of
converting information from analog to
digital which can lead to changes in a >
business model and provide new > value
propositions as well as new revenues.
disruptive
technology
A disruptive technology is a technology
that initiates massive economic
transformations in existing markets and
value networks, typically displacing
established market leaders, products,
and/or alliances and thus disrupting the
status quo.
11
distributed ledger
A distributed ledger is a digital system that
is consensually shared and synchronized
across a geographically spread network
across multiple sites, institutions and/or
geographies.
DLT (distributed
ledger technology)
see > distributed ledger
ecosystem
(business
ecosystem)
An ecosystem is a network of interacting
individuals and organizations such as
suppliers, producers, competitors, and
other stakeholders that produces goods
and services of value to customers, who
are themselves members of the
ecosystem.
elevator pitch
An elevator pitch is a very short > pitch
that takes only as long as an elevator ride.
electronic payment
(e-payment,
Epayment,
electronic funds
transfer)
An electronic payment is a payment made
from one bank account to another via
electronic means without the direct
intervention of bank staff instead of using
cash or check, in person or by mail.
12
electronic money
see > digital currency
EMV (Europay,
Mastercard and
Visa)
EMV is a global technical standard set forth
by Europay, MasterCard, and Visa for
credit and debit cards as well as for
payment terminals and automated teller
machines that can accept them.
encryption
Encryption is the process of encoding a
message or information into another form
which cannot be easily understood by
anyone except authorized parties.
Ether
Ether is a cryptocurrency token which can
be transferred between accounts and used
to compensate > Ethereum nodes for
computations performed.
Ethereum
Ethereum is a public > Blockchain based
distributed computing platform for
applications that run smart contracts.
13
Fiat money
Fiat money is unredeemable money that
has no intrinsic value and which is made a
currency by a resolution (from Latin,"fiat"
meaning "let it be done").
financial inclusion
Financial inclusion is the process of making
financial products and services -
transactions, payments, savings, credit,
investments and insurance - affordable to
disadvantaged and low-income segments
of society in a fair and transparent fashion.
The objective of financial inclusion is to
decrease those segments of society which
are > underbanked or even entirely >
unbanked.
Finserv (FinServ)
Finserv is an abbreviation for financial
services or the financial services industry.
Fintech
Fintech is a new financial industry that
applies technology to improve financial
activities.
1
first-mover
advantage (FMA)
A first-mover advantage is the advantage a
business gains by being the first significant
1 Schueffel, Patrick. "Taming the Beast: A Scientific Definition of Fintech." Journal of
Innovation Management 4.4 (2017): 32-54.; p.45
14
player to enter a new market or market
segment, leading to higher revenues and
profits over time.
friends and family
Friends and family are a category of
investors who typically provide early > seed
capital at a stage where not much more
than an idea exists.
foreign exchange
Foreign exchange is the process by which
one currency is exchanged for another
currency.
Forex (foreign
exchange market,
FX, currency
market)
Forex is the market where > foreign
exchange takes place.
Gamification
Gamification is the process of applying
games or game-like elements and
principles to other non-game areas of
activity, oftentimes to increase user
engagement and provide > instant
gratification.
15
Generation Y
see > Millenials
GulfTech
In the context of > Fintech GulfTech is a
new domain that applies technology to
improve > IslamTech in the Persian Gulf
region.
Hacker
A hacker is an expert at programming and
solving problems with computer who
potentially also use these skills to gain
unauthorized access to computer systems.
Hackathon
A hackathon is an event, often lasting
several days, in which a large number of >
hackers meet to collaboratively code
computer programs.
ICO (initial coin
offering)
An ICO is an unregulated means of >
crowdfunding applied by > cryptocurrency
businesses as an alternative to the rigorous
and regulated capital-raising process
required by venture capitalists, banks, or
stock exchanges. In an ICO a percentage of
the newly issued > cryptocurrency is sold
to investors in exchange for legal tender or
other cryptocurrencies such as Bitcoin.
16
IDTech
IDTech is a new subdomain within the >
RegTech domain that applies technology to
improve identification processes.
Incubator
An incubator is an organization that
accelerates the development of new and >
startup companies by providing
entrepreneurs with an array of targeted
resources and services such as office
infrastructure and management training.
Through their network of contacts
incubators often provide new paths to
funding from > Angel Investors, > venture
capital firms and other investors. The
services provided by incubators are usually
developed and orchestrated by the
incubator management.
Innovation
Innovation is the multi-stage process
whereby organizations transform ideas
into new/improved products, service or
processes, in order to advance, compete
and differentiate themselves successfully
in their marketplace.
Insurance on
Demand (IoD)
Insurance on demand is an insurance
service that provides clients with insurance
protection when they need, i.e. only
episodic rather than on 24/7 basis as
17
typically provided by traditional insurers
(e.g. clients can purchase an insurance for
one single flight rather than a year-lasting
travel insurance).
instant
gratification
Instant gratification is the satisfaction
gained by experiencing immediate
pleasure or fulfillment.
InsurTech
InsurTech is a new insurance-related
industry that applies technology to
improve insurance services.
Internet Finance
Internet Finance is a term regularly used In
China in lieu of > Fintech.
Intrapreneur
An intrapreneur is an employee who
champions entrepreneurship and
innovation within a larger company by
applying entrepreneurial skills.
Invention
An invention is something that has been
never been made before, oftentimes a
new process or product developed from
study and experimentation.
18
IPO (initial public
offering)
An initial public offering is the process by
which a private company is offered for the
first time to the general public on a
securities exchange. IPOs are typically
conducted by small and young firms
seeking capital to expand, but they can
also be done by large privately owned
companies looking to become publicly
traded.
IslamTech
In the context of > Fintech IslamTech is a
new domain that applies technology to
improve sharia compliant banking and
financing activities.
know your
customer (KYC)
KYC is a set of principles for identifying and
verifying the identity of banking clients to
adhere to anti-money laundering
regulations, but also to ensures that the
bank has detailed information on the
clients' risk tolerance, investment
knowledge and financial standing.
Lab (Fintech Lab)
A Lab is infrastructure and personnel that
is available for projects. Oftentimes
incumbent banks and insurances use labs
to speedily get on an even level with >
Fintech > startups in terms of technological
infrastructure and expertise and to thus
foster > innovation.
19
math based
currency
see > cryptocurrency
machine learning
Machine learning is an application of >
artificial intelligence that automates
analytical model building by using >
algorithms that iteratively learn from data
without being explicitly programmed
where to look.
meme
A meme is a discrete unit of knowledge,
such as a word, idea, catchphrase,
behavior, or style that spreads from person
to person. It constitutes to culture what a
gene constitutes to life. Facilitated by the
Internet a meme may also spread via
instant messaging services, social
networks, blogs, or via email and in various
forms, e.g. as a hashtag, image, hyperlink,
video or URL etc.
Millenial
(Generation Y)
Millennials are the demographic cohort
reaching young adulthood in the early 21st
century. Typically the early 1980s are seen
as starting birth years and the mid-1990s
to early 2000s as ending birth years.
Minimum viable
product (MVP)
A minimum viable product is an early
version of a product with just sufficient
features to satisfy early adopters, and to
collect feedback for future product
development.
20
mobile payment
A mobile payment is a > digital payment
via a mobile device so that the transaction
can be conducted independently of the
geographic location of the person
conducting the transaction.
mobile wallet
see > digital wallet
money laundering
The term money laundering describes the
process of transforming monetary
proceeds of crimes into apparently
"legitimate" assets.
mPOS
Describes a mobile > POS. It is the place
where sales are made in case mobile
business is conducted.
mWallet
see > digital wallet
NFC (near field
communication)
NFC is a short-range wireless connectivity
standard that permits systems in close
proximity to detect each other and to
communicate without the need for an
Internet connection.
21
omnichannel
Omnichannel is a client interaction
approach which seamlessly integrates with
and across different channels of exchange
with clients (e.g. letter, e-mail, SMS, in a
physical location, or by phone) and thus
provides clients with a cohesive interaction
experience.
Onboarding (client
onboarding)
Onboarding is the process of adding a new
client to the existing group of clients of a
firm and familiarizing the client with
services, products, and processes. In the
case of banks, onboarding involves > AML
as well as > KYC procedures.
open API
An open API is a publicly available > API
that provides third-party developers with
the necessary information to access a
proprietary system in order to build
applications communicating with this
system.
Open banking
Open banking is a principle that enables
third party developers to build applications
and services around a bank by using >
open APIs; it allows banks to share
customer data with third party companies
or apps so that users can be provided with
data from a range of financial institutions.
Open Innovation
Open innovation is the use of purposive
inflows and outflows of knowledge to
accelerate internal innovation, and expand
22
the markets for external use of innovation,
respectively. 2
open source
Open source is a principle according to
which the source code of software is made
available to anyone and for any purpose,
such as inspection, modifying, and
distribution by the copyright holder.
P2P insurance
(peer-to-peer
insurance)
A P2P insurance is a risk sharing network
where a self-governing group of peers pool
their premiums together to insure against
a risk; each other's risks is absorbed by
every peer contributing funds to insure
each other's losses.
P2P lending (peer-
to-peer lending)
P2P lending is a method of lending money
to individuals or businesses through online
services that directly matches lenders with
borrowers without using an official
financial institution as an intermediary.
2 Chesbrough, H. (2006). Open innovation: a new paradigm for understanding
industrial innovation. Open innovation: Researching a new paradigm, 400, 0-19; p.1
23
payment gateway
A payment gateway is a merchant service
that authorizes payment processing (credit
card, debit card, Paypal etc.) for retailers of
any kind, e.g. online businesses, physical
stores, restaurants etc.
PayTech
PayTech is a subset of > Fintech and a new
domain within the financial industry that
applies technology to improve payments. It
builds on technologies such as the > digital
wallet and > NFC and strives to advance >
electronic payments and/or > mobile
payments, both at > POS and > mPOS.
PFM (Personal
Financial
Management)
PFM is software that helps individuals
manage their personal financial affairs.
Typically, PFM lets users categorize
transactions and add accounts from
various institutions into a single view
oftentimes supported by visualizations.
PIN (personal
identification
number)
A PIN is a numeric or alphanumeric
password or code used in many electronic
financial transactions for authenticating or
identifying a user to a system and/or a
system to a user.
24
pitch (business
pitch)
A pitch is a > business plan delivered
verbally by an entrepreneur to potentials
investors or other funding parties.
POC (proof of
concept), also PoC
(proof of concept)
In project management a PoC is a
significant accomplishment which
demonstrates that the realization of a
certain method, concept or idea is feasible.
POP (proof of
principle)
see > PoC (Proof of Concept)
Portal
see > Web portal
POS (point of sale),
also
POP (point of
purchase)
The POS is the place where retail sales are
made such as a checkout counter such as a
checkout counter at a shop where a
customer completes a transaction or a
market or a city on an aggregated level.
25
PSD2 (Payment
Services Directive
2)
PSD2 is the second Payment Services
Directive, set forth by the European Union
which aims at improving consumer
protection with regards to online
payments, promoting the development
and use of innovative online and mobile
payments, and making European cross-
border payments more secure.
PSP (payment
service provider)
A PSP is a firm that offers other business
services for accepting electronic payments
and thus establishes a connection between
shops and financial institutions such as
banks and credit card firms.
RegTech
RegTech is a new domain within the
financial industry that applies technology
to improve regulatory processes, especially
with regards to > KYC and > AML.
regulatory sandbox
A regulatory sandbox is a supervised space,
open to both authorized and unauthorized
firms, that provides a set of rules that
allows innovators to test their products
and services in a live environment without
following some or all legal requirements,
subject to predefined restrictions.
26
Robo-Advisor
A Robo-Advisor is a self-guided online
wealth management service that provides
automated investment advice at low costs
and low account minimums, employing
portfolio management algorithms.
Robo-Advise
(Robo-Advice)
Robo-Advise is a wealth management
advisory service provided by a > Robo-
Advisor.
ROI (Return on
Investment)
The ROI is a performance measure used to
evaluate the efficiency of an investment in
terms of the amount of return an
investment yields relative to the
investment’s costs.
ROI = (Investment Payoff - Investment
Cost) / Investment Cost.
SaaS (software as a
service)
Software as a service is an end-to end
software licensing and delivery process in
which software is licensed and delivered
by a third party on a subscription basis and
is centrally hosted.
27
Sandbox
see > regulatory sandbox
Scalability
Scalability is the capability of a process,
network, software, system, or organization
to grow and manage expanding workload.
seed capital
Seed capital is the funding required to start
a new business. Oftentimes this initial
funding supports preliminary activities
such as market research, research, and
development (R&D), and > business plan
development. Seed capital is typically
provided by the business owners and >
friends and family
Series A
A series A is the name for a financing
round that is the first significant round of
business financing by private equity
investors or > venture capitalists; it refers
to the class of preferred stock issued as it
is typically convertible preferred stock.
28
Series B
A series B is the name for the second
round of financing for a growing company
through any type of investment, including
private equity investors and > venture
capitalists which typically requires that
certain milestones have been met.
Series C
A series C is the name for the third round
of financing for a growing company
through any type of investment, including
private equity investors and > venture
capitalists which is typically executed in
order to grow market share, do
acquisitions, or to develop more/improved
products and services.
shadow bank
A shadow bank is a non-bank financial
intermediary that carries out one or
multiple traditional banking functions, but
which is not subject to regulatory
oversight.
shadow banking
system
The shadow banking system is a network
of diverse > shadow banks which
collectively provides services similar to
regulated banks but outside conventional
financial regulations.
29
SSO (single sign-on)
SSO is an authentication process that
allows a user to access multiple related,
yet independent, software systems with
one set of login credentials without using
different usernames or passwords.
smart contract
A smart contract is an online contractual
agreement based on applications that run
exactly as programmed without any
possibility of downtime, censorship, fraud
or third-party interference.
social trading
Social trading is the process through which
online investors utilize user-generated
content for the act of online trading by
analyzing financial data and copying trades
as well trading techniques and strategies.
startup (start-up,
startup company)
A startup is a business that is in the
process of being setup and thus that has
just recently begun operation.
30
STP (straight
through
processing)
STP is the ability to process financial
transactions from start to finish without
human intervention. By eliminating paper-
based work and by allowing information
flow from one party to another and thus
avoiding manual re-entry of identical
pieces of information, STP optimizes
transaction speed as well as process
quality.
TaxTech
TaxTech is a subset of > Fintech and a new
domain within the financial industry that
applies technology to improve tax
management and administration.
TCO / Total Cost of
Ownership
The total cost of ownership is a
performance measure used to determine
the direct and indirect costs associated
with an asset over its lifecycle.
tokenization
Tokenization is a method of protecting
sensitive information by substituting a
critical data element with a non-sensitive
unique alphanumeric identifier, referred to
as a token, that has no exploitable
meaning or value to third parties.
31
TOTD (talk of the
day)
TOTD describes the latest topic which is
currently discussed. In the fast-changing
domain of > Fintech topics shift swiftly and
thus the latest theme is sometimes labeled
with the #TOTD hashtag.
2FA (two factor
authentication,
TFA, two step
verification)
A two factor authentication is a process of
confirming a user's alleged identity by
using a combination of two different
components, for instance a password and
a physical token (e.g. > PIN and credit
card).
unbanked
Unbanked is a characteristic describing
people who do not use banks or financial
institutions oftentimes because they do
not have access to banking services or
because they prefer cash transactions
outside the banking system.
underbanked
Underbanked is a characteristic describing
people who do not have sufficient access
to mainstream financial services and
products typically offered by retail banks
and thus regularly rely on cash and checks
as a mean of funding rather than bank
32
related methods such as credit cards or
loans.
unicorn
A unicorn is a privately held > startup
company valued at over $1 billion; yet
these unicorns have often not established
a performance record.
user experience
(UX)
The user experience is a person's
perceptions, emotions, attitudes, and
responses that result from the use of a
product, system or service.
value proposition
A value propositions is a claim that value is
delivered to customers and acknowledged;
it represents the reason why a prospect
should prefer the product or service of one
company over those of another.
value network
A value network is a web spanning
organizations, departments, operating
units or people that describes social and
technical resources, relationships,
interactions and dependencies within and
among organizations that typically lead to
value creation.
33
venture capital
(VC)
Venture capital is a type of early risk-
bearing funding that investors provide to >
startup companies and small business
which are believed to have growth
potential.
WealthTech
WealthTech is a subset of > Fintech and a
new domain within the financial industry
that applies technology to improve wealth
management and private banking.
Web portal (Portal)
A Web portal is a specifically designed
World Wide Web site that serves as a
major starting point to access information.
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POSTFACE
This booklet is far from being complete. As an emerging field Fintech
is constantly evolving. Hence, should you be missing one particular
term or expression which you believe ought to be included in this
booklet, do send me an
e-mail: patrick.schueffel@hefr.ch
I look forward to hearing from you!
Patrick Schueffel
About the author
Patrick Schueffel is professor at the Institute of Finance at Fribourg’s School of
Management and a consultant to various Swiss and international banks. His
research interests focus on the areas of Entrepreneurship in Banking & Finance,
Innovation, and International Business. He has published widely in academic as
well as practitioner journals in Switzerland and internationally. Prior to his
academic career Professor Schueffel held various senior positions at banks in
Switzerland. Among others he served as the Chief Operating Officer of Saxo
Bank Switzerland and as a director at Credit Suisse’s Private Banking Division. At
Credit Suisse he was the responsible global innovation officer of the one-
thousand employee strong organizational unit “Investment Services &
Products”. He holds a doctorate degree from Henley Business School at the
University of Reading/UK, a Master Degree from the Norwegian School of
Economics and Diploma from Mannheim University/Germany.
Have you ever wondered what banking as a platform means, what BaaS,
ICO and MVP stand for, and what a Colored Coin is?
Then this booklet is the right guide for you: It explains more than 130
Fintech terms, acronyms, and abbreviations in plain English.
