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 Cloud in banking: automated clearing houses. 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.
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 315+ 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 Visa are some of the other prominent patent filters in this space.
In terms of application diversity, Fidelio Acquisition held the top position, while CFPH and Stripe stood in second and third positions, respectively. By means of geographic reach, Xero leads the pack, followed by Madison Dearborn Partners 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.
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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.
