The banking and payments industry continues to be a hotbed of innovation owing to ever changing consumer expectations. The rapid technological developments in the areas of banking and payments that aim to offer seamless experience to consumers are now becoming even more vital for industry participants as competitors leverage new technologies such as artificial intelligence, Internet of Things, cybersecurity, and embedded finance as they compete to stay relevant and grow in the market. In the last three years alone, there have been over 92,000 patents filed and granted in the banking industry, according to GlobalData’s report on Cybersecurity in Banking: encryption for secure transmission.

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 stabilising 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.

60+ 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 195,000 patents, there are 60+ innovation areas that will shape the future of the industry.

Biometric payments, encryption for secure transmission, and public key encryption protocols are some of the accelerating innovation areas, where adoption has been steadily increasing. Among maturing innovation areas are biometric payer/payee verification and voice-based payer/payee authentication, which are now well established in the industry. 

Innovation S-curve for cybersecurity in the banking industry

Encryption for secure transmission is a key innovation area in cybersecurity

Encryption is the process of converting plaintext into a secret code known as ciphertext for secure transmission of data. The data is decrypted by the end user for whom the original content in intended using a key. End-to-end encryption is often used to transfer sensitive information such as credit card and bank account information over open networks.

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 50 companies, spanning technology vendors, established banking companies, and up-and-coming start-ups engaged in the development and application of encryption for secure transmission.

Key players in encryption for secure transmission – a disruptive innovation in the banking industry

‘Application diversity’ measures the number of different applications identified for each relevant patent and broadly splits companies into either ‘niche’ or ‘diversified’ innovators.

‘Geographic reach’ refers to the number of different countries each relevant patent is registered in and reflects the breadth of geographic application intended, ranging from ‘global’ to ‘local’.

Patent volumes related to encryption for secure transmission

Company Total patents (2010 - 2021) Premium intelligence on the world's largest companies
SoftBank Group 385 Unlock company profile
Visa 260 Unlock company profile
Microsoft 129 Unlock company profile
Capital One Financial 127 Unlock company profile
nChain Holdings 114 Unlock company profile
Security First 104 Unlock company profile
International Business Machines 85 Unlock company profile
Memjet Technology 83 Unlock company profile
Bluefin Payment Systems 59 Unlock company profile
Mastercard 58 Unlock company profile
Nokia 56 Unlock company profile
PayPal Holdings 55 Unlock company profile
Ant Group 49 Unlock company profile
Accenture 49 Unlock company profile
Thales 48 Unlock company profile
Samsung Group 46 Unlock company profile
Telefonaktiebolaget LM Ericsson 44 Unlock company profile
Apple 42 Unlock company profile
Alphabet 40 Unlock company profile
BCE 40 Unlock company profile
MC Familiengesellschaft mbH 40 Unlock company profile
Pendrell 39 Unlock company profile
Dominion Harbor Enterprises 36 Unlock company profile
Bundesdruckerei 36 Unlock company profile
Sony Group 35 Unlock company profile
Worldline 34 Unlock company profile
SSenStone 32 Unlock company profile
Qualcomm 31 Unlock company profile
BlackBerry 31 Unlock company profile
Orange 31 Unlock company profile
Huawei Investment & Holding 29 Unlock company profile
eBay 28 Unlock company profile
Koninklijke Philips 28 Unlock company profile
Universal Secure Registry 27 Unlock company profile
Intertrust Technologies 27 Unlock company profile
Panasonic 26 Unlock company profile
Broadcom 25 Unlock company profile
Pure Storage 24 Unlock company profile
Dell Technologies 24 Unlock company profile
Avast 24 Unlock company profile
Cisco Systems 23 Unlock company profile
Algorand 22 Unlock company profile
Amazon.com 22 Unlock company profile
Tendyron 22 Unlock company profile
Payfone 21 Unlock company profile
Intel 21 Unlock company profile
Cryptomathic 21 Unlock company profile
NEC 20 Unlock company profile
Safran 19 Unlock company profile
Nations Technologies 18 Unlock company profile

Source: GlobalData Patent Analytics

Visa is one of the leading patent filers in Encryption services. The company in July 2022 filed a patent for distributed symmetric encryption. Client computers use a cryptographic key to encrypt or decrypt a message when communicating with a cryptographic device. Some other key patent filers in the encryption industry include SoftBank, Microsoft, Capital One Financial, nChain, and Security First.

In terms of application diversity, Memjet Technology leads the pack. Dominion Harbor Enterprises and Intertrust Technologies stood in the second and third positions, respectively. By means of geographic reach, Safran holds the top position, followed by Huawei Investment & Holding and nChain Holdings.

To further understand the key themes and technologies disrupting the banking industry, access GlobalData’s latest thematic research report on Cybersecurity in Banking.

GlobalData, the leading provider of industry intelligence, provided the underlying data, research, and analysis used to produce this article.

GlobalData’s Patent Analytics tracks patent filings and grants from official offices around the world. Textual analysis and official patent classifications are used to group patents into key thematic areas and link them to specific companies across the world’s largest industries.