Traditional Finance
Traditional Finance refers to the established financial systems, institutions, and practices that have evolved over centuries, including banking, insurance, stock markets, and regulatory frameworks. It operates through centralized intermediaries like banks, brokers, and exchanges, relying on legacy technologies and manual processes for transactions, record-keeping, and compliance. This domain encompasses areas such as corporate finance, investment management, and financial analysis, often governed by strict regulations and standardized methodologies.
Developers should learn about Traditional Finance when building applications for banking, trading platforms, or financial services that integrate with legacy systems, as it provides essential context for compliance, risk management, and user needs. It is crucial for roles in fintech, where understanding concepts like securities, derivatives, and regulatory requirements (e.g., KYC, AML) enables the development of secure and compliant software. Use cases include creating payment gateways, portfolio management tools, or automating financial reporting in established industries.