The banking industry continues to be a hotbed of patent innovation. Activity is driven by digitalization, enhanced security, operational efficiency, ever changing consumer expectations, and growing importance of technologies such as artificial intelligence (AI), Internet of Things (IoT), and cybersecurity. In the last three years alone, there have been over 129,000 patents filed and granted in the banking industry, according to GlobalData’s report on Cybersecurity in banking: cryptocurrency transactions. Buy the report here.
However, not all innovations are equal and nor do they follow a constant upward trend. Instead, their evolution takes the form of an S-shaped curve that reflects their typical lifecycle from early emergence to accelerating adoption, before finally stabilizing and reaching maturity.
Identifying where a particular innovation is on this journey, especially those that are in the emerging and accelerating stages, is essential for understanding their current level of adoption and the likely future trajectory and impact they will have.
30+ innovations will shape the banking industry
According to GlobalData’s Technology Foresights, which plots the S-curve for the banking industry using innovation intensity models built on over 165,000 patents, there are 30+ innovation areas that will shape the future of the industry.
Within the emerging innovation stage, distributed ledger transactions, is a disruptive technology that is in the early stages of application and should be tracked closely. Voice-based authentication, geofenced transactions, and embedded secure elements are some of the accelerating innovation areas, where adoption has been steadily increasing.
Innovation S-curve for cybersecurity in the banking industry
Cryptocurrency transactions is a key innovation area in cybersecurity
Cryptocurrency transactions refer to the transfer of digital assets or currencies using a decentralized blockchain network. The transactions occur directly between the sender and receiver without the need for intermediaries like banks or financial institutions. They are verified and processed through the blockchain network, which ensures transparency, security, and immutability of the transactions.
GlobalData’s analysis also uncovers the companies at the forefront of each innovation area and assesses the potential reach and impact of their patenting activity across different applications and geographies. According to GlobalData, there are 470 companies, spanning technology vendors, established banking companies, and up-and-coming start-ups engaged in the development and application of cryptocurrency transactions.
Key players in cryptocurrency transactions – a disruptive innovation in the banking industry
‘Application diversity’ measures the number of applications identified for each patent. It broadly splits companies into either ‘niche’ or ‘diversified’ innovators.
‘Geographic reach’ refers to the number of countries each patent is registered in. It reflects the breadth of geographic application intended, ranging from ‘global’ to ‘local’.
Patent volumes related to cryptocurrency transactions
Source: GlobalData Patent Analytics
Among the companies innovating in technologies associated with cryptocurrency transactions, Advanced New Technologies is one of the leading patent filers. The company has filed patents related to blockchain data protection based on a generic account model and homomorphic encryption, signature verification for a blockchain ledger, and blockchain-based data authorization, transaction processing, reconciliation, and recordkeeping methods and apparatus. IBM, Mastercard, and nChain, are some of the other key patent filers in cryptocurrency transactions.
In terms of application diversity, Mythical Venture held the top position, while Labyrinth Research and Nasdaq stood in second and third positions, respectively. By means of geographic reach, Eluvio leads the pack, followed by Civic Technologies and Labyrinth Research.
To further understand the key themes and technologies disrupting the banking industry, access GlobalData’s latest thematic research report on Cybersecurity in Banking.