Describes a procedure or a regulation for solving complex problems or a class of problems, which are sufficiently formalized to be processed by an artificial system. Algorithms are mathematical calculation rules or logical rules anchored in program code that determine the calculation and/or evaluation of data (e.g., if-then conditions). Algorithms are often present in solutions based on artificial intelligence (AI) and allow a high degree of automation in standardized or low-complexity financial processes, which are often typical for fintech solutions. The application of algorithms in a specific setting is referred to as algorithmization.
More Term Definitions
- Advanced Encryption Standard (AES)
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- Anti-Money Laundering (AML)
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