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 Innovation in banking: mortgage servicing risk management. Buy the report here.
Smarter leaders trust GlobalData
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
Mortgage servicing risk management is a key innovation area in banking
Mortgage servicing risk management involves ensuring that risks associated with mortgage servicing are minimized and managed effectively. It can include factors such as assessing the creditworthiness of borrowers, monitoring loans for delinquency or other signs of potential default, ensuring compliance with regulations, and implementing appropriate hedging strategies to mitigate risk.
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 120+ companies, spanning technology vendors, established banking companies, and up-and-coming start-ups engaged in the development and application of mortgage servicing risk management.
Key players in mortgage servicing risk management – 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 mortgage servicing risk management
| Company | Total patents (2010 - 2022) | Premium intelligence on the world's largest companies |
| Oracle | 57 | Unlock Company Profile |
| Domo | 32 | Unlock Company Profile |
| CoreLogic | 21 | Unlock Company Profile |
| TransUnion | 20 | Unlock Company Profile |
| China Investment | 14 | Unlock Company Profile |
| Coocon | 12 | Unlock Company Profile |
| Moneycatcha | 9 | Unlock Company Profile |
| Federal Home Loan Mortgage | 9 | Unlock Company Profile |
| Zillow Group | 8 | Unlock Company Profile |
| Woori Financial Group | 7 | Unlock Company Profile |
| NewBanking ApS | 7 | Unlock Company Profile |
| Sony Group | 7 | Unlock Company Profile |
| Land Bank of Taiwan | 6 | Unlock Company Profile |
| Aircraft Technical Publishers | 6 | Unlock Company Profile |
| Ping An Insurance (Group) | 5 | Unlock Company Profile |
| JPMorgan Chase | 5 | Unlock Company Profile |
| Industry Access | 5 | Unlock Company Profile |
| Mega Financial | 5 | Unlock Company Profile |
| Federal National Mortgage Association | 5 | Unlock Company Profile |
| CTBC Financial | 4 | Unlock Company Profile |
| Bank of America | 4 | Unlock Company Profile |
| Sutherland Global Services | 4 | Unlock Company Profile |
| LG | 4 | Unlock Company Profile |
| Taiwan Financial | 4 | Unlock Company Profile |
| Samsung Group | 4 | Unlock Company Profile |
| NICE | 3 | Unlock Company Profile |
| OBIC Group | 3 | Unlock Company Profile |
| Constellation Software | 3 | Unlock Company Profile |
| State Farm Mutual Automobile Insurance | 3 | Unlock Company Profile |
| Meso Scale Diagnostics | 3 | Unlock Company Profile |
| Home Button | 2 | Unlock Company Profile |
| Lianjiawang (Beijing) Technology | 2 | Unlock Company Profile |
| Real Estate Equity Exchange | 2 | Unlock Company Profile |
| Altisource Solutions | 2 | Unlock Company Profile |
| Upwork | 2 | Unlock Company Profile |
| Xome | 2 | Unlock Company Profile |
| Textura | 2 | Unlock Company Profile |
| Shinhan Financial Group | 2 | Unlock Company Profile |
| Hancom | 2 | Unlock Company Profile |
| KT | 2 | Unlock Company Profile |
| Mitsubishi UFJ Financial Group | 2 | Unlock Company Profile |
| Lifull | 2 | Unlock Company Profile |
| Sumitomo Mitsui Financial Group | 2 | Unlock Company Profile |
| Industrial Bank of Korea | 2 | Unlock Company Profile |
| CITIC Group | 2 | Unlock Company Profile |
| Assicurazioni Generali | 2 | Unlock Company Profile |
| Zhejiang Shuqin Technology | 2 | Unlock Company Profile |
| AT&T | 2 | Unlock Company Profile |
| KB Financial Group | 2 | Unlock Company Profile |
| Royal Bank of Canada | 2 | Unlock Company Profile |
Source: GlobalData Patent Analytics
Among the companies innovating in technologies associated with mortgage servicing risk management, Oracle is the leading patent filers. Oracle Financial Services Software, a wholly-owned subsidiary of Oracle, offers a range of mortgage products to create amortized and bearing home loans with auto/manual disbursement and intermediate interest rate. It also offers products to create reverse mortgage contracts for senior citizens and book mortgage loans with the customer’s savings account linked to the contract wherein the interest rate is calculated based on the difference between the expected mortgage principal and the balance in the savings account.
Similarly, Oracle Financial Services BPO is one of the leaders in the mortgage process outsourcing space. It provides mortgage bankers with comprehensive end-to-end mortgage services to reduce the turn-around-time, minimize borrower default rates and fraud risks, and maximize revenue generation.
Domo, CoreLogic, and TransUnion are some of the other key patent filers in the mortgage servicing risk management space.
In terms of application diversity, Coocon held the top position, while Samsung Group and KT stood in second and third positions, respectively. By means of geographic reach, Oracle leads the pack, followed by Domo and TransUnion.
To further understand the key themes and technologies disrupting the banking industry, access GlobalData’s latest thematic research report on Banking.
Data Insights
From
The gold standard of business intelligence.
Blending expert knowledge with cutting-edge technology, GlobalData’s unrivalled proprietary data will enable you to decode what’s happening in your market. You can make better informed decisions and gain a future-proof advantage over your competitors.
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.
