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 Artificial intelligence in Banking: self-checkout terminals.
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.
Within the emerging innovation stage, AI-assisted OCR is a disruptive technology that is in the early stage of application and should be tracked closely. Transaction splitting, automated payment card scanning, and automated clearing houses are some of the accelerating innovation areas, where adoption has been steadily increasing. Among maturing innovation areas is metadata extraction for payments, which is now well established in the industry.
Innovation S-curve for artificial intelligence in the banking industry
Self-checkout terminals is a key innovation area in artificial intelligence
Self-checkout terminals are automated machines that allow customers to scan and pay for their purchases without the assistance of a cashier. These terminals typically feature a touchscreen display, barcode scanner, and payment terminal.
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 self-checkout terminals.
Key players in self-checkout terminals – 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 self-checkout terminals
Source: GlobalData Patent Analytics
Mastercard is a key patent filer in the field of self-checkout terminals. The company has filed several patents for detecting customer presence to initiate the ordering and purchase of goods and services, preparing and delivering an ordered product upon detecting customer presence, and intelligent shopping cart service. Some other key patent filers in the self-checkout terminals industry are Fidelity National Information Services and JPMorgan Chase.
In terms of application diversity, Assa Abloy leads the pack. Omnicell and Accel Robotics stood in the second and third positions, respectively. By means of geographic reach, Standard Cognition holds the top position, followed by Japan Tobacco and Extreme Networks.
To further understand the key themes and technologies disrupting the banking industry, access GlobalData’s latest thematic research report on Artificial Intelligence (AI) in Banking.