Fintech Terminology / Glossary / Dictionary - B

Banking license 

A banking license is an official authorization granted by a government or regulatory authority that allows a company or institution to establish a bank and legally conduct banking activities (such as accepting deposits from customers, providing loans and credit, and offering various financial services such as checking accounts, savings accounts, and investment options). There are various prerequisites in order to obtain a banking licence; from capitalisation to an extensive business plan. These differ depending on the jurisdiction in which the business operates.

Obtaining a banking license is an important step for any organization that wants to operate as a bank and offer banking services to the public. The license provides credibility and trust to customers, reassuring them that the bank operates under the supervision and regulations set forth by the governing authorities.

Without a banking license, a company cannot legally engage in traditional banking activities or use terms like "bank," "banking," or "savings" in its business operations. The licensing process involves scrutiny of the institution's financial stability, compliance with laws and regulations, and its ability to protect customer deposits and financial interests.

Bank Identification Number (BIN)

BIN stands for "Bank Identification Number." It is a unique set of digits, usually the first four to six digits of a credit or debit card number, that helps identify the issuing bank or financial institution. The BIN is used to process and route transactions, allowing merchants and banks to recognize the type of card being used and its issuer. Sometimes, it is also referred as an Issuer Identification Number (IIN).

When you make a payment or do a transaction using a credit or debit card, the BIN is used to determine which bank issued the card and what type of card it is (e.g., Rupay, Visa, Mastercard, American Express, Diners etc). This information is essential for processing the transaction securely and efficiently, as it helps to verify the legitimacy of the card and ensure that the payment is routed to the correct bank for authorization and processing.

Big Data 

Big Data refers to structured and unstructured data that is too large or too complex to be processed by a traditional data management application. Big data in fintech refers to the large and complex sets of financial information and transactions that are collected, processed, and analyzed to gain valuable insights and make informed decisions in the financial technology (fintech) industry. Using big data in fintech allows companies to better understand customer behavior, assess credit risks, detect fraudulent activities, personalize financial services, and optimize investment strategies, among many other applications. It enables fintech firms to enhance their offerings, improve efficiency, and ultimately provide more tailored and innovative solutions to individuals and businesses in the financial sector. In FinTech, most typically we find Big Data implemented for sentiment analysis, fraud detection, fraud prevention and personalizing customer interaction.


Blockchain is a technology that allows information to be stored and shared across a network of computers in a secure and transparent way. It's like a digital ledger or record-keeping system that can't be easily altered or tampered with. Each piece of information, or "block," is connected to the one before it, creating a chain of blocks, hence the name "blockchain." This makes it very hard to change past records without changing all the subsequent blocks, which would require agreement from the entire network. It's often associated with cryptocurrencies like Bitcoin, but its potential uses go beyond that to include secure record-keeping for various types of data and transactions.

Buy Over Time

Buy over time refers to the practice of purchasing goods or services and paying for them in installments over a specified period, rather than paying the full amount upfront. This approach makes expensive items more affordable by spreading out the cost. It can involve an initial down payment and subsequent regular payments. It's important to understand any associated interest or fees before committing to such an arrangement.

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