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.
30+ 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 165,000 patents, there are 30+ innovation areas that will shape the future of the industry.
Within the emerging innovation stage, distributed ledger transactions, is a disruptive technology that is in the early stages of application and should be tracked closely. Voice-based authentication, geofenced transactions, and embedded secure elements are some of the accelerating innovation areas, where adoption has been steadily increasing.
Innovation S-curve for cybersecurity in the banking industry
Decentralized finance (DeFi) is a key innovation area in cybersecurity
Decentralized finance (DeFi) refers to a financial system built on top of blockchain technology that eliminates intermediaries like banks and brokerages. DeFi utilizes smart contracts to automate financial transactions, provide transparency, and improve efficiency.
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 100+ companies, spanning technology vendors, established banking companies, and up-and-coming start-ups engaged in the development and application of decentralized finance (Defi).
Key players in decentralized finance (Defi) – 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 decentralized finance (Defi)
Source: GlobalData Patent Analytics
Advanced New Technologies is one of the leading patent filers in technologies associated with decentralized finance. The company filed several patents related to distributed ledger technologies including methods and systems of establishing communication between different blockchain networks, creating and mapping decentralized identifiers to real-world entities, implementing contracts through blockchain-based cross entity authentication, and issuing verifiable claims for decentralized identifiers.
Toronto-Dominion Bank, State Farm Mutual Automobile Insurance, and Bank of America are some of the other prominent patent filers in DeFi.
In terms of application diversity, Amazon.com held the top position, while Meditor European Master Fund and Digital Asset Holdings stood in second and third positions, respectively. By means of geographic reach, Toronto-Dominion Bank leads the pack, followed by Ripple Labs and State Farm Mutual Automobile Insurance.
To further understand the key themes and technologies disrupting the banking industry, access GlobalData’s latest thematic research report on Cybersecurity 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.
This news is republished from another source.
