🚀 How to Start a BFSI Startup and Excel with AI

🔍 BFSI Jargon: Speak the Language Like a Pro

Jumping into BFSI without understanding the lingo is like trying to win a spelling bee in Latin. Here’s a jargon-busting cheat sheet you’ll want to bookmark:

📊 Financial Metrics

• ROI (Return on Investment) – Profit made relative to the money invested.

• ROE (Return on Equity) – Profit earned with shareholders’ equity.

• Current Ratio – Measures a firm’s ability to pay short-term obligations.

• Debt-to-Equity Ratio – Compares debt to shareholder equity — banks watch this closely.

• Gross Margin – Revenue minus cost of goods sold.

🏦 Banking Terms

• CAS (Core Banking System) – Backend system that processes banking transactions (think ledgers, transfers, interest calc).

• SWIFT – Messaging system for international transfers between financial institutions.

• Basel II/III – Global banking regulation frameworks on risk management, liquidity, and capital adequacy.

• LCR (Liquidity Coverage Ratio) – How much liquid assets a bank holds vs short-term liabilities.

• NSFR (Net Stable Funding Ratio) – Ensures banks have long-term stable funding.

🔐 Compliance & Security Terms

• KYC (Know Your Customer) – Verifying the identity of customers.

• AML (Anti-Money Laundering) – Processes that detect and prevent illegal financial activity.

• PCI DSS – Standard for securely handling card transactions (if you touch credit cards, this applies).

• GDPR – EU data protection regulation; applies if you deal with European customers.

• Dodd-Frank Act – US regulation for financial transparency and risk control.

• SOX (Sarbanes-Oxley Act) – Ensures financial data integrity for public companies.

• OWASP – Security standard for secure software development.

• Pen Testing – Simulated hacking to test vulnerabilities in your system.

Phew. Don’t panic — you don’t need to memorize them all. But if you’re going to start a BFSI startup and excel with AI, you’ll need to be fluent in at least the big ones.