Published: 03.09.2019

fintech vardnica bank lv eng 2019

Application programming interface (API)

ikonas api 129Software enabling immediate interaction between two systems. Systems use API to transfer information and execute operations on behalf of their users.

API is a set of predefined procedures, functions and structures. It is implemented as an add-on (service) which can be used with external software products. API is used by software developers to create various software add-ons and interconnect systems.

Artificial intelligence (AI)

ikonas maksligais intelekts 129Devices that use data analysis and algorithms to be able to make independent judgements, take rational decisions and recognise text, speech, sounds, images, faces, scents, emotions and other features of objects and subjects.

With the development of artificial intelligence, the abilities of humans and animals are being transferred to machine environment. This leads to the automation and robotisation of processes and operations. The development of this technology enables us to use machines in our every-day processes, thus making our lives easier. With artificial intelligence becoming increasingly more advanced, some emerging devices use their computing capacity to adopt new ways of learning by taking atypical decisions and assigning new characteristics to existing things.


ikonas blokkede 129A decentralised database; a continuously growing list of blocks (records). Each block contains a time stamp and a cryptographic reference to the previous block. To alter a previously created block, all subsequent blocks would also have to be altered. Therefore, the blockchain technology is secure.

The blockchain technology was developed in 2008 by a hacker or group of hackers under the pseudonym Satoshi Nakamoto for the purpose of creating and maintaining the bitcoin cryptoasset. After witnessing the success of bitcoin, other developers also used the blockchain technology to create new cryptoassets. More than 10 years after the creation of bitcoin, the two elements – cryptoassets which are based on the blockchain technology and blockchain itself which can also be used for other purposes – exist independently.


ikonas pula finansejums 129A form of funding a project where money is raised from a large number of supporters rather than a single investor, on an online platform. For their investment, participants receive e.g. interest payments.

Crowdfunding is used to finance various projects such as start-ups at their development stage, real estate construction projects, etc.


ikonas kriptoaktivi 129Electronic means of exchange, maintained on a decentralised basis. The permanence of executed transactions is ensured and the emission of new units is controlled by means of cryptography.

The first cryptoasset – bitcoin – was introduced in 2009. It was followed by many other blockchain-based cryptoassets. The exchange of cryptoassets takes place on unregulated cryptoasset exchange platforms where participants set the market price based on demand and supply. Users should be aware that cryptoassets are only stored in an electronic environment and they often have no collateral, e.g. in the form of gold or real estate.


ikonas kiberdroshiba 129Protection of information systems against the theft of or damage to the hardware, software and data, and protection against the disruptions or changes to the provided services.

With the development of technologies and their role in ensuring everyday services, the digital vulnerability is growing; therefore, cybersecurity and the protection of ones data in particular should be given increasing attention.


ikonas dati 129A character or sequence of characters stored in physical or electronical form. When combined with knowledge, they become information describing the status of a real object.

Each data unit represents a particular event, object or process. Data can be classified into financial, statistical, geographic, meteorological, nature-related, transport-related, cultural and scientific data.
Data are collected, stored, measured and analysed. Data are supplemented with metadata (data about data) containing information on the time, place, ambient temperature and/or other data collection conditions.


ikonas datubaze 129Electronic data that are organised in a pre-defined structure and can be accessed via a database management system.

The type of data to be stored on a database is defined upon its creation. Data are organised in rows and columns, with an index or designation assigned to each of them. This enables users to identify and search the data organised in the database. A database can be updated by entering, modifying or deleting data. Data can be retrieved from a database by using an adequate management system. This way, the data remain unchanged. A database is managed by an administrator who assigns access rights, registers users and is responsible for data integrity, security and the database performance.

Data cloud

ikonas datu makonis 129A virtual data storage infrastructure. With the permission of the user, the data are accessible from physical devices such as PCs, tablets and smartphones that have a connection to the internet.

In reality, the data are stored in logical sets of data on one server or several network servers which can be located on different sites. These servers are managed by data service providers responsible for data security, continuous operation of servers and access to data. Users buy or rent from these service providers a certain amount of server space for the storage of their data.

Fintech (financial technology) company

ikonas fintech 129A company which develops and uses new and innovative technologies in the area of financial services. This leads to the development of new financial products and services or a significant improvement of the existing ones.

A fintech company can be a start-up developing innovations in a specific field/area. The term can also be applied to technology companies, e.g. companies offering their customers innovative financial management tools via their platforms. By offering a faster, more convenient and cheaper service which attracts a significant number of customers and, thus, also motivates the traditional banks to change, fintech companies have transformed the financial services sector in a relatively short time.


innovationA process whereby new scientific, technological, social, cultural or other ideas, designs and technologies are implemented to create a highly demanded and competitive product or service.

Innovations are classified into product, process, marketing and organisational innovations. Each of these types of innovations represents new solutions, methods and strategies that significantly change and improve the existing work process. Innovation is considered both the creation of an entirely new product, process or method and the change of an existing product, process or method by significantly improving all or one of their aspects.

Innovation sandbox

ikonas smilshkaste 129An environment, both physical and digital, and a set of tools providing an opportunity for those generating new ideas as well as project teams and start-ups to work together to address challenges, explore possibilities and create concepts in real time and in an appropriate environment which is equipped with the necessary tools and provides access to data.

Innovation sandbox is the approach currently practised by supervisory authorities to promote innovation advancement, identify potential obstacles and improve the regulatory framework. Participation in an innovation sandbox is beneficial both for organisers who ensure favourable conditions and for participants as they intensively share their knowledge, perform tests on their systems and infrastructures and use them, thereby improving their ideas.

Initial coin offering (ICO)

ikonas ico 129Public fund-raising campaign which uses cryptoassets and involves an issue of new cryptocoins or tokens. Cryptocoins or tokens are developed and distributed based on the dispersed accounting technology or the blockchain technology.

Contrary to the initial public offering (IPO) where shares are sold on the stock market, the initial coin offering does not offer the sale of a company's shares. The transaction involves only cryptoassets.

Internet of things (IoT)

ikonas lietu internets 129Connecting physical everyday devices to a single network. Internet of things allows devices to receive data and send them to the user and other devices. Thus, they can be operated – controlled, switched on and switched off – remotely.

Internet of things is a modern way of managing devices remotely by connecting them to the internet or another data transmission network. The connected devices may have various functions and sizes ranging from a smart watch measuring your heart rate and a security camera sending you a warning when an unauthorised person enters the premises to agricultural drones and tractors. Smart devices in your home can also be connected to a single network and managed via smartphone or desktop apps. This is how you create a smart home allowing you to remotely regulate the temperature and lighting and control your smart devices. Older-generation devices or more simple products such as lamps and kettles with smart plugs can also be connected to the internet.

Instant payment

ikonas zibmaksajums 129A service available within a new payment infrastructure ensuring the execution of interbank payments within a matter of seconds 24/7/365. In August 2017, Latvijas Banka was the first central bank of the Eurosystem to introduce the instant payment infrastructure which has been connected to other European payment systems since November 2017.

The main objective of introducing this service was to ensure fast, secure and effective payments for both private and legal persons and to remove the limitations imposed by the credit institutions' working hours. The instant payment service is not exclusive, and no additional fee is applied for the service.

Mobile technologies

mobile technologiesTechnologies available on smart devices. These technologies operate by using the device's processor, additional equipment (camera, fingerprint reader, etc.) as well as mobile and wireless networks.

With the technological solutions and the data transmission speed developing rapidly, the operations users can perform on their smart devices are becoming increasingly more diverse ranging from voice calls to high-resolution video streaming and remote identity verification. At the beginning of the 21st century, modern technologies have significantly changed our everyday lives. However, our over-reliance on devices raises discussion about digital security.

Payment system

payment systemA money transfer system whose participants agree to uniform and standardised terms and procedures for payment processing and settlement.

Payment systems are maintained by both central banks and commercial companies jointly shaping the payment system environment. Certain payment systems ensure, for instance, the settlement of the financial instruments or credit cards. Interbank settlement can be executed via clearing or real-time payment systems. The payments received via clearing systems are bundled in files, with the netting executed and the payment message sent to the receiving bank only at certain times of the day. In real-time payment systems, the settlement for each payment is executed immediately, notifying the receiving bank thereof.

Payment services directive 2 (PSD2)

PSD2The primary objective of the directive is to make the financial services market more open and available to new participants. PSD2 establishes new types of service providers authorised by customers to access their account information and even make payments from their accounts. In addition, PSD2 establishes stricter rules for customer authentication.

EU Member States had to implement the Directive by 13 January 2018. PSD2 closely follows the idea of open banking as it makes available information that was previously accessed exclusively by banks. The security of user data is ensured based on the API technology. Regulation on strong customer authentication will apply from 14 September 2019. According to the new requirements, only authentication based on two or more security elements such as possession and knowledge shall be used.

Smart contract

smart contractA contract that is stored on a blockchain and takes effect automatically, once all contract terms have been fulfilled.

A smart contract ensures high precision, transparency, speed and security, since the information on the fulfilment of contract terms is available to all involved parties.


startupThe initial stage of a business based on an innovative idea or new technology. A start-up develops products or services that are suitable for the international market and ensure dynamic business growth.

A start-up is based on an idea, and its primary objective is to test the potential of that idea and then implement it. The product or service of a start-up is improved, finished and tested in the market in order to attract investment and make the product or service available to the general public. The ideas developed by start-up founders do not always draw the attention of investors. In that case, the invested work will bring no profit but will only serve as a lesson. When attracting investment, start-up founders should also consider that investors will want to have an ownership stake in the business or influence its strategy.

Quick Response code (QR code)

QR kods banklv ENG 129A rectangular module filled with smaller squares in a specific two-dimensional pattern. The module contains encoded information that can be read by using an appropriate device.

The encoded information can also contain a certain command, for instance, to open a particular website, make a payment for a received product or service, etc.