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 5,000 patents filed and granted in the banking industry, according to GlobalData’s report on Artificial intelligence in banking: credit risk AI. Buy the report here.
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According to GlobalData’s Technology Foresights, which uses over 176,000 patents to analyze innovation intensity for the banking industry, there are 35+ innovation areas that will shape the future of the industry.
Credit risk AI is a key innovation area in artificial intelligence
AI-based credit risk assessment utilizes artificial intelligence and machine learning algorithms to determine a borrower’s creditworthiness. The system analyses the borrower’s credit history, banking transactions, and other financial data to generate a credit risk score and evaluate the potential risk associated with the borrower.
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 820+ companies, spanning technology vendors, established banking companies, and up-and-coming start-ups engaged in the development and application of credit risk AI.
Key players in credit risk AI – 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 credit risk AI
| Company | Total patents (2010 - 2022) | Premium intelligence on the world's largest companies |
| USAA | 353 | Unlock Company Profile |
| State Farm Mutual Automobile Insurance | 262 | Unlock Company Profile |
| Alibaba Group | 261 | Unlock Company Profile |
| Visa | 252 | Unlock Company Profile |
| China Investment | 247 | Unlock Company Profile |
| Ping An Insurance (Group) | 223 | Unlock Company Profile |
| Ant Group | 210 | Unlock Company Profile |
| Mastercard | 205 | Unlock Company Profile |
| The Toronto-Dominion Bank | 164 | Unlock Company Profile |
| Memjet Technology | 158 | Unlock Company Profile |
| Bank of America | 137 | Unlock Company Profile |
| The Hartford Financial Services Group | 129 | Unlock Company Profile |
| CME Group | 109 | Unlock Company Profile |
| PayPal | 107 | Unlock Company Profile |
| Advanced New Technologies | 101 | Unlock Company Profile |
| The Allstate | 101 | Unlock Company Profile |
| Rpx | 98 | Unlock Company Profile |
| Discovery | 93 | Unlock Company Profile |
| INRIX | 88 | Unlock Company Profile |
| Capital One Financial | 84 | Unlock Company Profile |
| Swiss Re | 83 | Unlock Company Profile |
| American Express | 81 | Unlock Company Profile |
| Swiss Re Asia Pacific | 75 | Unlock Company Profile |
| JPMorgan Chase | 69 | Unlock Company Profile |
| Taikang Insurance Group | 59 | Unlock Company Profile |
| International Business Machines | 56 | Unlock Company Profile |
| Experian | 44 | Unlock Company Profile |
| Moody's | 43 | Unlock Company Profile |
| Accenture | 41 | Unlock Company Profile |
| Wells Fargo | 38 | Unlock Company Profile |
| Sony Group | 38 | Unlock Company Profile |
| Upaid Systems | 37 | Unlock Company Profile |
| Industrial and Commercial Bank of China | 35 | Unlock Company Profile |
| eBay | 35 | Unlock Company Profile |
| Cambridge Mobile Telematics | 35 | Unlock Company Profile |
| The Goldman Sachs Group | 29 | Unlock Company Profile |
| Toshiba | 28 | Unlock Company Profile |
| Dominion Harbor Enterprises | 28 | Unlock Company Profile |
| 10353744 Canada | 28 | Unlock Company Profile |
| UnitedHealth Group | 27 | Unlock Company Profile |
| Aon | 27 | Unlock Company Profile |
| Virtu Financial | 26 | Unlock Company Profile |
| Coupang | 26 | Unlock Company Profile |
| Cognizant Technology Solutions | 25 | Unlock Company Profile |
| CoreLogic | 25 | Unlock Company Profile |
| Global Payments | 24 | Unlock Company Profile |
| SAP SE | 24 | Unlock Company Profile |
| Global Payments | 24 | Unlock Company Profile |
| Tencent | 23 | Unlock Company Profile |
| Samsung Life Insurance | 23 | Unlock Company Profile |
Source: GlobalData Patent Analytics
Among the companies innovating in credit risk AI, the United Services Automobile Association (USAA) is one of the leading patent filers. USAA is leveraging AI-driven text recognition and analysis tools to collect and analyze massive volumes of data to gain a better understanding of a customer’s financial profile, perform credit risk analysis with a higher accuracy than traditional statistical methods, and develop and manage credit risk and collection strategies more effectively.
State Farm Mutual Automobile Insurance, China Investment, and Alibaba Group are some of the other prominent patent filers in this space.
In terms of application diversity, INRIX held the top position, while Cambridge Mobile Telematics and Memjet Technology stood in second and third positions, respectively. By means of geographic reach, Memjet Technology leads the pack, followed by INRIX and Cambridge Mobile Telematics.
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.
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GlobalData, the leading provider of industry intelligence, provided the underlying data, research, and analysis used to produce this article.
GlobalData’s Patent Analytics tracks patent filings and grants from official offices around the world. Textual analysis and official patent classifications are used to group patents into key thematic areas and link them to specific companies across the world’s largest industries.
