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: privacy masking transaction verification.

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

Privacy masking transaction verification is a key innovation area in cybersecurity

Privacy masking can be defined as a technique used to create a replica of the original data. However, sensitive information is hidden using the technique. Banks leverage this technique to hide classified information and data.

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 40 companies, spanning technology vendors, established banking companies, and up-and-coming start-ups engaged in the development and application of privacy masking transaction verification.

Key players in privacy masking transaction verification – 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 privacy masking transaction verification

Company Total patents (2010 - 2021) Premium intelligence on the world's largest companies
nChain Holdings 270 Unlock company profile
SoftBank Group 122 Unlock company profile
LG 28 Unlock company profile
Intertrust Technologies 22 Unlock company profile
Mastercard 21 Unlock company profile
Coinbase Global 20 Unlock company profile
International Business Machines 18 Unlock company profile
Overstock.com 15 Unlock company profile
Digital Asset Holdings 15 Unlock company profile
Visa 14 Unlock company profile
Ballet Global 13 Unlock company profile
PayPal Holdings 13 Unlock company profile
Sony Group 13 Unlock company profile
Inveniam Capital Partners 13 Unlock company profile
Porsche Automobil Holding 12 Unlock company profile
Microsoft 10 Unlock company profile
Beijing Electronics Holding 10 Unlock company profile
Ant Group 9 Unlock company profile
Universal Group 9 Unlock company profile
JPMorgan Chase 7 Unlock company profile
Shinhan Financial Group 7 Unlock company profile
Samsung Group 6 Unlock company profile
Diamond Standard 6 Unlock company profile
China Merchants Bank 6 Unlock company profile
Nokia 6 Unlock company profile
Barclays 6 Unlock company profile
Corner Banca 6 Unlock company profile
Walmart 6 Unlock company profile
OX Labs 6 Unlock company profile
Wells Fargo 5 Unlock company profile
GMO Internet 5 Unlock company profile
Capital One Financial 5 Unlock company profile
Ngrave.IO 5 Unlock company profile
R3 5 Unlock company profile
MC Familiengesellschaft mbH 5 Unlock company profile
Biometric Blockchain 5 Unlock company profile
Coinplug 5 Unlock company profile
Tencent Holdings 5 Unlock company profile
Digimarc 5 Unlock company profile
CME Group 5 Unlock company profile

Source: GlobalData Patent Analytics

nChain Holdings is one of the leading patent filers in the privacy masking transaction verification space. The company has a patent filed on a solution that provides a method and corresponding system for controlling access. The solution uses an electronic ledger such as the Bitcoin blockchain. Access to the resource is either prevented or disabled by removing the public key from memory. Some other key patent filers in this space include SoftBank Group, LG, Intertrust Technologies, Mastercard, and Coinbase Global.

In terms of application diversity, Ballet Global leads the pack. Intertrust Technologies and CME Group stood in the second and third positions, respectively. By means of geographic reach, Intertrust Technologies holds the top position, followed by LG 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.