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: payment card cryptography. 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
Payment card cryptography is a key innovation area in banking
Payment card cryptography refers to the use of cryptographic techniques to secure payment transactions made using credit or debit cards. It includes the use of dynamic authentication values, verification from a first party to a second party using suitably programmed computing apparatus, and posting of auditable, immutable data to a blockchain. The technology aims to prevent fraudulent use of payment cards and ensure the security of financial 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 340+ companies, spanning technology vendors, established banking companies, and up-and-coming start-ups engaged in the development and application of payment card cryptography.
Key players in payment card cryptography – 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 payment card cryptography
Source: GlobalData Patent Analytics
Mastercard is one of the leading patent filers in payment card cryptography. The company recently launched a new type of contactless card that incorporates the next-generation quantum cryptography to offer additional layers of security for protection against hack from both traditional and future quantum computers. nChain, Alibaba Group, and Capital One Financial are some of the other key patent filers in this space.
In terms of application diversity, Nippon Telegraph and Telephone held the top position, while NEC and Bundesdruckere stood in second and third positions, respectively. By means of geographic reach, DeviceFidelity leads the pack, followed by BCE and Crusoe Energy Systems.
To further understand the key themes and technologies disrupting the banking industry, access GlobalData’s latest thematic research report on Banking.