FinTech jargon to understand the buzz around it | EPS Recruitment Agency Singapore

FinTech jargon to understand the buzz around it

With the recent announcement of the Digital Bank licences in Singapore, the buzz around FinTech grows louder. The concept of Financial Technology appears to have captured the imagination of small enterprises, banks, and financial institutes and has also piqued the interest of most consumers.

Every technological advancement brings with it a range of new lexicons for the layman to comprehend. The finance sector known to be laden with difficult terminology is now made more complex with the incorporation of technology, increasing the jargon by multi-fold. The world of FinTech is starting to sound like an increasingly niche space where obscure terminology is springing up.

Trying to keep up with all the on-going discussions surrounding the topic of FinTech but find reading articles about big topics such as Blockchain, Cryptocurrency, and RegTech an impossible task? Here are definitions of common FinTech jargon that explain ideas that are most discussed but often least well understood. Spend a few minutes of your time to arm yourself with definitions of common terminologies, which are essential to understanding the FinTech revolution.


EPS Consultants is a leading recruitment agency specialising in FinTech recruitment services. Our consultants are proficient in the FinTech industry and we subscribed to market-leading tools that allow us to expand our search. We are committed to building a strong team of FinTech professionals for our clients who can bring companies’ development plans to greater heights.


Perhaps, it is because FinTech is an extremely broad term, making it difficult for one to pinpoint an exact definition and grasp the concept fully. FinTech, also known as Financial Technology, essentially refers to any financial services that are delivered with the help of technology.

When FinTech first emerged, it was initially used to describe the technological back-end systems of established financial institutions. In recent times, as the focus shifted to consumer-oriented services, the definition of FinTech broadens to a broad variety of technological interventions into personal and commercial finance. It covers an array of sectors such as investment, P2P lending, insurance, fund transfer, and regtech.

To understand the different sectors, read in-depth here.

Angel Investor

Angel investor also known as business angel, informal investor, angel funder, private investor, or seed investor, refers to an individual who provides funding capital for start-ups or new businesses. These groups of investors are typically individuals who have spare cash available and are looking for a higher rate of return. They usually provide the capital in exchange for taking an equity position in the company. Hence, angel investment is a form of equity financing, which is commonly used by businesses that experience a tight cash flow or the lack of collateral with which to secure business loans from financial institutions.

Banking License

MAS is Singapore’s central bank and sole bank regulator, overseeing all financial institutions in Singapore. To conduct a banking business in Singapore, banks are required to apply for a banking license, which includes a full bank license, wholesale bank license, and offshore bank license. The new addition – Digital Banking License, allows businesses to offer the same banking services as traditional banks but operate without physical infrastructure.

Note that since April 2016, MAS has stopped issuing offshore bank licenses, and all existing offshore banks will be converted to wholesale banks.

Big Data

The onslaught of IoT and other connected devices has created a massive uptick in the amount of information organizations collect, manage and analyze. Big Data has a definition that is literal to its name. It refers to a large volume of data – both structured and unstructured – that is too huge or complex to be processed by a traditional data management application. Big Data has become such a hot topic as it possesses great potential and opens countless opportunities for businesses in terms of cost reductions, optimized offerings, and personalising customer interactions.

Data Mining

With relations to Big Data, data mining refers to the process whereby data scientist uses the combination of machine learning and artificial intelligence to analyse a large amount of data. The aim of data mining is to discover hidden connections and patterns and to use the information for future trend predictions.

Machine Learning

Machine learning is a brand of artificial intelligence based on the idea that systems can learn from data, identify human patterns and make decisions without the need for explicit programming. Machine learning typically focuses on the development of computer programs that can learn from a large amount of data. It gains the ability to automatically apply mathematical calculations to Big Data delivering faster and more accurate results, even on a very large scale.

Deep Data

When Big Data is analysed, and insights are produced. The relevant and actionable information that is gained is known as deep data.


The hype around blockchain is one of the most popular topics in FinTech. However, many people still don’t understand what blockchain is. Moreover, people who do understand it sometimes have a hard time explaining it succinctly, especially if they have to do so in non-technical terms that a wide audience can understand.

In simple terms, blockchain works like a ledger where information is recorded in real-time across a network of computers. Blockchain is essentially a type of database but the key differences lie in these areas:

The way information is stored:

A blockchain collects information together in groups (blocks). Each block has a storage capacity and when filled, it will be chained onto the previously filled block. While traditional databases structure data into tables.


Blockchain allows for decentralisation, where the computers that make up its network are owned and operated by different entities in different geographical locations.


Due to the decentralised nature, all transactions are made available to all members of the network. Also, the transactions are immutable, implying that no alteration of information can be done once added. Only in the case when the majority of the members reached a consensus to alter the information, can edits be made.


Another added advantage of the decentralised nature is the security of information. For an instant, if a hacker were to alter the blockchain and remove certain information, it would no longer align with other members’ copies. By conducting a cross-reference, it would be able to find out the corrupted version and remove that copy, retaining the accurate data.

To succeed in hacking a blockchain, the hackers will have to simultaneously control and alter 51% of the copies so that the corrupted version becomes the majority copy and replace the existing data. Such an attempt would require a huge amount of resources which makes blockchain relatively secured.  


Bitcoin (BTC) follows closely behind the discussion of blockchain as the Bitcoin protocol is built on a blockchain. With blockchain, it serves as a ledger where transactions or payments are recorded with many additional benefits such as the speed of transactions, security, and transparency.  

Introduced in January 2009, Bitcoin is a digital currency that is fully peer to peer, with no trusted third party. Unlike the traditional currencies, Bitcoin does not have any physical representation and all transactions are verified by a massive amount of computing power. Although it does have a legal tender, it is very popular and accepted as a means of payment for certain stores.


Bitcoin is a type of cryptocurrency. It refers to virtual currency and its name is derived from the encryption techniques which are used to secure the network. Encryption is the process that converts the original representation of the information into an alternative form.

Similarly, cryptocurrencies are decentralised networks that are based on blockchain technology. The main difference between cryptocurrency and conventional currency is that they are generally not issued by any central authority. Thus, the value of cryptocurrency is determined by market forces.


Crowdfunding is the act of getting capital from numerous wealthy individuals to finance a new business venture or project. With the advancement in technology, the vast networks of people are connected through the internet, making it much easier for entrepreneurs to expand the pool of investors and get more funding.

P2P Lending

Peer-to-peer platform lending, also called P2P lending, share similar concepts to crowdfunding. However, for P2P lending, investors earn a return via interest payable on the loan instead of equity that is commonly seen in crowdfunding.  


Introduced by the MAS, the FinTech Regulatory Sandbox is a live environment with a well-defined space and duration for FinTech players to experiment with innovative financial products or services. It helps to contain the consequences of failure and maintain the overall stability and safety of the financial system in Singapore.


Insurtech, also referred to as insurance technology, is the use of technology to improve insurance offerings. It helps to reduce costs for stakeholders involved, and enable insurance companies to offer customisable and personalised products.


Regtech, also known as Regulatory technology, is the use of technology within the financial sector to manage and strengthen regulatory processes. The main functions of regtech include compliance, reporting, and regulatory monitoring amongst others.

Know Your Customer (KYC)

Know your customer, otherwise known as KYC, is a common abbreviation used in the FinTech industry. It refers to the process of verifying the identity, suitability, and risks involved with maintaining a business relationship with the client. These procedures are part of the broader scope of a bank’s Anti-money laundering policy.


EPS Consultants is a leading recruitment agency specialising in FinTech recruitment services. Our consultants are proficient in the FinTech industry and we subscribed to market-leading tools that allow us to expand our search. We are committed to building a strong team of FinTech professionals for our clients who can bring companies’ development plans to greater heights.

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