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 Innovation in banking: cashless settlement. 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, AR/VR trading platforms and mortgage servicing risk management are disruptive technologies that are in the early stages of application and should be tracked closely. Voice payments, cashless settlement and asynchronous distributed payments are some of the accelerating innovation areas, where adoption has been steadily increasing. Among maturing innovation areas are IM trading platforms and UWB-enabled payments, which are now well established in the industry.
Innovation S-curve for the banking industry
Cashless settlement is a key innovation area in banking
Cashless settlement refers to a system or method of completing financial transactions without using physical cash such as coins or paper currency. Instead, it relies on electronic methods for transferring funds between parties. This can involve various digital payment mechanisms and systems, such as credit and debit cards, mobile wallets, online bank transfers, electronic funds transfers (EFT), and other digital payment platforms.
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 80+ companies, spanning technology vendors, established banking companies, and up-and-coming start-ups engaged in the development and application of cashless settlement.
Key players in cashless settlement – 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 cashless settlement
Source: GlobalData Patent Analytics
Among the companies innovating in cashless settlement, International Game Technology (IGT) is one of the leading patent filers. Resort Wallet and IGTPay are two cashless gaming modules of the company’s IGT ADVANTAGE™ casino management system, offering both cardless and carded cashless payment solutions to boost player convenience, reduce contact, and make the gaming experience seamless. Nant, Angel Playing Cards, and Novomatic are some of the other key patent filers in this space.
In terms of application diversity, Evryx Acquisition held the top position, while Nant and TouchTunes stood in second and third positions, respectively. By means of geographic reach, Nant leads the pack, followed by Milestone Entertainment and Ag 18.
To further understand the key themes and technologies disrupting the banking industry, access GlobalData’s latest thematic research report on Banking.