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: automated collateral validation. 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 collateral validation is a key innovation area in artificial intelligence
Automated collateral validation refers to the process of using technology and algorithms to assess the value and reliability of collateral assets in various transactions. It involves the use of data analysis, machine learning, and other automated techniques to accurately determine the worth of assets and evaluate their suitability for collateral. By automating this process, financial institutions and lenders can streamline their operations, reduce manual effort, and make more informed decisions regarding collateral-based 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 130+ companies, spanning technology vendors, established banking companies, and up-and-coming start-ups engaged in the development and application of automated collateral validation.
Key players in automated collateral validation – 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 collateral validation
Source: GlobalData Patent Analytics
Capital One Financial is one of the leading innovators in collateral validation. The company provides a variety of lending products including auto loans, home loans, and commercial and consumer banking loans. It leverages AI-powered automation tools to determine the loan-to-value (LTV) ratio and validate underlying collateral and guarantees to secure exposures and optimize counterparty risk management before underwriting any collateral-based loans.
Nant Ip, Swirlds, and Memjet Technology are some of the other leading patent filers in the collateral validation space.
In terms of application diversity, Healthy io held the top position, while Memjet Technology and Anoto Group stood in second and third positions, respectively. By means of geographic reach, Swirlds leads the pack, followed by Wuhan Note Exchange Center and MX Technologies.
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.
