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 is now becoming even more vital for industry participants as competitors leverage new technologies such as artificial intelligence, Internet of Things, cybersecurity, and embedded finance 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: EMV tokenisation.
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
EMV tokenisation is a key innovation area in cybersecurity
EMV tokenisation is a security feature that is used to protect sensitive payment card data during digital transactions. It involves the use of a unique identifier or "token" to replace the actual card number, which helps to prevent fraud and unauthorised access to the cardholder's account.
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 EMV tokenisation.
Key players in EMV tokenisation – 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 EMV tokenisation
Source: GlobalData Patent Analytics
nChain is a key patent filer in the field of EMV tokenisation. The company has filed several patents for providing a secure method for exchanging entities via a blockchain, solutions for the transfer and access control of electronic/digital tokens, blockchain technologies for the control and performance of secure exchanges and tokenisation techniques. It has also patented exchange processes conducted between two parties via a blockchain such as the Bitcoin blockchain, and a universal tokenisation system for blockchain-based cryptocurrencies. Some other key patent filers in the EMV tokenisation industry are Bizmodeline and Tencent.
In terms of application diversity, Huawei Investment & Holding leads the pack. Sony and Microsoft stood in the second and third positions respectively. By means of geographic reach, Licentia holds the top position followed by Black Gold Coin and Gelliner.
To further understand the key themes and technologies disrupting the banking industry, access GlobalData’s latest thematic research report on Cybersecurity in Banking.