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 Cloud in banking: automated clearing houses. Buy the report here.
According to GlobalData’s Technology Foresights, which uses over 165,000 patents to analyze innovation intensity for the banking industry, there are 30+ innovation areas that will shape the future of the industry.
Automated clearing houses is a key innovation area in cloud
Automated clearing houses (ACH) are electronic networks used to process batches of low value credit and debit transactions between participating financial institutions. These transactions include direct deposit, payroll, vendor payments, debit transfers, and consumer payments.
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 290+ companies, spanning technology vendors, established banking companies, and up-and-coming start-ups engaged in the development and application of automated clearing houses.
Key players in automated clearing houses – 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 automated clearing houses
Source: GlobalData Patent Analytics
Mastercard is one of the leading patent filers in digital payment technologies associated with automated clearing houses. By leveraging open banking, the company launched two Smart Payment Decisioning Tools, namely Payment Success Indicator and Payment Routing Optimizer, in March 2022, to minimize ACH payment failures, reduce transaction costs, and make the payment experience faster, safer, and smarter for customers. Alibaba Group, Bank of America, and Visaare some of the other prominent patent filters in this space.
In terms of application diversity, Fidelio Acquisition held the top position, while CFPH and Advanced New Technologies stood in second and third positions, respectively. By means of geographic reach, Ripple Labs leads the pack, followed by Xero and Alphabet.
To further understand the key themes and technologies disrupting the banking industry, access GlobalData’s latest thematic research report on Cloud Computing in Banking.