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 cyber security. 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 Innovation in banking: automated banking machines. Buy the report here.
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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.
35+ 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 176,000 patents, there are 35+ innovation areas that will shape the future of the industry.
Within the emerging innovation stage, mortgage servicing risk management and AR/VR trading platforms are disruptive technologies that are in the early stages of application and should be tracked closely. Cashless settlement, automated banking machines, and asynchronous distributed payments are some of the accelerating innovation areas, where adoption has been steadily increasing. Among maturing innovation areas are UWB-enabled payments, and mobile check deposit processing, which are now well established in the industry.
Innovation S-curve for the banking industry
Automated banking machines is a key innovation area in banking
Automated banking machines, commonly referred to as ATMs, are self-service financial transaction terminals that allow users to perform a variety of banking transactions without the need for human assistance. These machines are equipped with computer hardware and software that enable users to access their bank accounts, withdraw cash, deposit funds, transfer money, check account balances, and perform other financial transactions electronically. ATMs provide convenient and secure banking services, allowing users to perform transactions outside of traditional banking hours and locations.
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 210+ companies, spanning technology vendors, established banking companies, and up-and-coming start-ups engaged in the development and application of automated banking machines.
Key players in automated banking machines – 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 banking machines
Source: GlobalData Patent Analytics
Diebold Nixdorf is one of the leading patent filers in automated banking machines. Diebold Nixdorf is a provider of end-to-end hardware, software, and services for the banking industry. DN SeriesTM is a family of industry-leading ATM solutions provided by the company. Lobby, Through-the-Wall (TTW), Outdoor Walk Up, Outdoor Drive Up, and Island Multi-Function are some of the most advanced and compact ATM solutions offered by the company.
Capital One Financial, Bank of America, and Diebold Self-Service Systems are some of the other key patent filers in automated banking machines.
In terms of application diversity, Princeton Identity held the top position, while Cubic and Hyosung TNS stood in second and third positions, respectively. By means of geographic reach, AT&T leads the pack, followed by BBVA and Gelliner.
To further understand the key themes and technologies disrupting the banking industry, access GlobalData’s latest thematic research report on 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.
