The Arab Monetary Fund, within the activities of the Arab Regional Fintech Working Group, has issued the second edition of the "Fintech Glossary”.
This has been done within the framework of the Arab Monetary Fund’s eagerness to enhance the digital financial literacy in the Arab countries, and its belief in the importance of having robust reference for the terminologies of the financial technology industry, considering the significant role that financial innovation plays in the future of financial and banking services.
The glossary contains 14 chapters covering all the terms of financial technology, which contributes to enhancing the awareness of the financial innovations’ concepts and terminologies.
In this regard, in light of the tremendous and accelerated growth of the Fintech industry, and the great opportunities offered by the fintech industry to enhance the efficiency of financial and banking operations, it becomes important to raise the awareness of the public about the terminologies of financial innovations, in an inclusive and comprehensive manner.
There is no doubt that fostering financial technology awareness will create positive impact on the future of financial and banking services in particular, and on financial stability and diversification of economic activity in general.
The glossary aims to be a gateway to introduce the terms used in various aspects of financial technology, whether in terms of business models and activities, the used technologies, the regulatory and supervisory policies and frameworks, and the institutional frameworks, through (14) chapters that are provided as follows: Artificial intelligence and machine learning, blockchain technology, cloud computing, cryptography, cyber security, data protection, digital identity, decentralised ledger technology (DLT), general terms (overlapping in industry), Insurtech, open banking operations, payments, smart contracts, and finally tokenisation.
The glossary reached 1,129 terms compared with 630 terms included in the first edition that was issued in December 2020.
On this occasion, Director General Chairman of the Board of Arab Monetary Fund, Dr Abdulrahman A Al Hamidy, stressed the importance of the second edition due to the substantial additions included, which boost the comprehensiveness of the glossary, highlighting the need for a regular update of the glossary.
He indicated that issuance of the glossary confirms that developing awareness and literacy about the development in Fintech industry and digital financial services will ensure a better understanding of digital business models and how to apply these innovative technologies in the financial sector, which contributes to enhancing the efficiency of access to formal digital financial services in Arab countries.
He also emphasised the increasing interest shown by Governors of Arab central banks and monetary authorities, in Fintech matters and the prominent role they play as a mechanism for digital transformation in Arab countries.