Decentralised Finance (DeFi)

The integration of financial services — such as payments, lending, insurance, or investment — directly into non-financial platforms and customer journeys. Embedded finance enables companies like e-commerce platforms, SaaS providers, and gig economy marketplaces to offer financial products without becoming licensed financial institutions, typically through Banking-as-a-Service partnerships.

A set of technology-based financing solutions that optimise cash flow by enabling suppliers to receive early payment of their invoices at a discount, funded by a financial institution or platform, while the buyer retains its original payment terms. Supply chain finance (also known as reverse factoring) benefits all parties: suppliers improve working capital, buyers extend payment terms without damaging supplier relationships, and financiers earn a return backed by the buyer's credit quality.

A self-executing program stored on a blockchain that automatically enforces the terms of an agreement when predetermined conditions are met, without requiring intermediaries. Smart contracts enable trustless transactions, automated escrow, decentralised finance protocols, and programmable business logic.

A regulatory authorisation granted to financial technology companies permitting them to offer specific financial services such as payments, lending, investment management, or insurance. Licencing requirements vary by jurisdiction and activity — in the UK, the FCA regulates fintech firms under frameworks including the Payment Services Regulations, the Electronic Money Regulations, and the FCA Regulatory Sandbox.

A regulatory and technological framework that enables third-party financial service providers to access consumer banking data through secure APIs, with the customer's explicit consent. In the UK, open banking was mandated by the CMA's Open Banking Remedy (2018) and is governed by the Open Banking Implementation Entity.

Digital intangible assets recorded and verified on a distributed ledger, including cryptocurrencies, tokenised securities, non-fungible tokens, and smart contracts. The valuation and accounting treatment of blockchain assets remain an evolving area, with significant implications for enterprise balance sheets.

A security interest granted by a borrower over its intellectual property assets — including patents, trademarks, copyrights, and trade secrets — as collateral for a loan or other financial obligation. IP charges must typically be registered at both the relevant IP registry (such as the UK Intellectual Property Office or USPTO) and the general security interests registry (Companies House, UCC, or PPSA).

The EU directive (2015/2366) that regulates payment services and payment service providers, mandating strong customer authentication, open banking through account access APIs (XS2A), and enhanced consumer protection. PSD2 has fundamentally reshaped the European payments landscape by requiring banks to provide licensed third parties with access to customer account data and payment initiation capabilities.