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: transaction fraud 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.
Transaction fraud AI is a key innovation area in artificial intelligence
Transaction fraud AI refers to the use of artificial intelligence and machine learning techniques to detect and prevent fraudulent transactions in various fields including banking and payments. It involves analyzing various data points and transaction patterns to identify potentially fraudulent activities, such as unauthorized access, identity theft, and suspicious transactions.
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 420+ companies, spanning technology vendors, established banking companies, and up-and-coming start-ups engaged in the development and application of transaction fraud AI.
Key players in transaction fraud 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 transaction fraud AI
Source: GlobalData Patent Analytics
Among the companies innovating in transaction fraud AI, Mastercard is the leading patent filer. Mastercard’s AI-powered Consumer Fraud Risk system has been implemented by nine banks in the UK including Lloyds Banking Group, NatWest Group, Bank of Scotland, and TSB.
Brighterion, a Mastercard company, provides AI-based fraud protections to more than 70 of the 100 largest banks in the US. Brighterion is a technology company specialized in Al applications for payment service providers, financial institutions, healthcare payers, and merchants, which was acquired by Mastercard in 2017.
Mastercard also announced a partnership with Network International to launch the Brighterion AI fraud prevention solution across the Middle East and Africa, in February 2023.
Visa, Nant Ip, and Alibaba Group are some of the other prominent patent filers in the transaction fruad AI space. .
In terms of application diversity, Walmart held the top position, while Intel and AT&T stood in second and third positions, respectively. By means of geographic reach, Enlitic leads the pack, followed by Fidelio Acquisition and Nant Ip.
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.
