The banking and payments industry continues to be a hotbed of innovation owing to ever-changing consumer expectations. The rapid technological developments in the areas of banking and payments that aim to offer seamless experience to consumers are now becoming even more vital for industry participants as competitors leverage new technologies such as artificial intelligence, Internet of Things, cybersecurity, and embedded finance as they compete to stay relevant and grow in the market. 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: IM trading platforms. 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 stabilising 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 stage 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
IM trading platforms is a key innovation area in banking
Instant Messaging (IM) is a text-based communication application which is used for trading in financial markets. Traders are increasingly using IM tools to create a private conversation with clients and to provide them with market updates. However, usage of such tools is increasing security and compliance risks for financial companies.
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 40 companies, spanning technology vendors, established banking companies, and up-and-coming start-ups engaged in the development and application of IM trading platforms.
Key players in IM trading platforms – 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 IM trading platforms
| Company | Total patents (2010 - 2022) | Premium intelligence on the world's largest companies |
| Headwater Research Llc | 202 | Unlock Company Profile |
| Headwater Partners I LLC | 191 | Unlock Company Profile |
| Deephaven Data Labs LLC | 101 | Unlock Company Profile |
| Broadcom Inc | 81 | Unlock Company Profile |
| The Macerich Co | 25 | Unlock Company Profile |
| Hitachi Ltd | 17 | Unlock Company Profile |
| Japan Exchange Group Inc | 15 | Unlock Company Profile |
| CME Group Inc | 12 | Unlock Company Profile |
| Advanced New Technologies Ltd. | 9 | Unlock Company Profile |
| Hangzhou FUZAMEI Technology Co | 7 | Unlock Company Profile |
| Illumon LLC | 7 | Unlock Company Profile |
| Intercontinental Exchange Inc | 6 | Unlock Company Profile |
| Nasdaq Inc | 5 | Unlock Company Profile |
| Advanced Micro Devices Inc | 5 | Unlock Company Profile |
| Camtek Ltd | 4 | Unlock Company Profile |
| Taikang Insurance Group | 4 | Unlock Company Profile |
| ItsOn, Inc. | 4 | Unlock Company Profile |
| The Celo Foundation | 3 | Unlock Company Profile |
| Push Technology Limited | 3 | Unlock Company Profile |
| Alibaba Group Holding Ltd | 3 | Unlock Company Profile |
| Exegy Incorporated | 2 | Unlock Company Profile |
| Celo Labs Inc | 2 | Unlock Company Profile |
| CME Group Berhad | 2 | Unlock Company Profile |
| China United Network Communications Ltd | 2 | Unlock Company Profile |
| The ODP Corp | 2 | Unlock Company Profile |
| Aeris Communications Inc | 1 | Unlock Company Profile |
| China United Network Communications Group Co Ltd | 1 | Unlock Company Profile |
| Advanced Transaction Systems Limited | 1 | Unlock Company Profile |
| Tencent Holdings Ltd | 1 | Unlock Company Profile |
| Kingdee International Software Group Company Ltd | 1 | Unlock Company Profile |
| DLCC LLC | 1 | Unlock Company Profile |
| China Investment Corp | 1 | Unlock Company Profile |
| Oracle Corp | 1 | Unlock Company Profile |
| KB Financial Group Inc | 1 | Unlock Company Profile |
| Mirae Asset Securities Co., Ltd. | 1 | Unlock Company Profile |
| Arista Networks Inc | 1 | Unlock Company Profile |
Source: GlobalData Patent Analytics
Headwater Research, Headwater Partners I, Deephaven Data Labs, Broadcom, The Macerich, and Hitachi are some of the key patent filers in the IM trading platforms space. Several patents have been filed in this field related to systems and apparatuses for securely communicating issuer updates.
In terms of application diversity, Deephaven Data Labs leads the pack. Illumon and The Macerich stand in second and third positions, respectively. By means of geographic reach, Deephaven Data Labs holds the top position, followed by Broadcom and Headwater Research.
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.
