By Daniel Lanyon on 6th August 2018
A new report analysing 100 million patents shows Bank of America is top for blockchain patents while IBM’s fintech patent portfolio is 5 times larger than the 15 largest banks'. Combined.
Deutsche Bank may have experimented with becoming a tech company a few years back as it sought to align itself with the disruptive forces within finance but new research shows that it owns just one fintech patent.
According to analysyis of the 10 millioon patents in the US, Deutsche Bank, Donald Trump’s favourite bank, is not alone. The world’s fifteen largest banks combined own five times’ fewer fintech patents than IBM, four times’ fewer than Microsoft and half as many as Google.
The data from Cipher’s AI-driven patent intelligence platform shows that banks remain at significant risk of disruption as finance becomes increasingly technology-driven.
In a new report it found Bank of America’s portfolio of 2,547 patented makes it the clear leader in fintech patents - by number - with nearly as many as its fourteen closest rivals combined.
“This patent gap leaves banks in a vulnerable position,” explains Nigel Swycher, CEO at Cipher.
“Fintech is key to the future of money and will disrupt every aspect of the financial services industry," he added.
“Without a strong patent portfolio, banks will have less control and influence, leaving tech companies holding all the cards.” “This could cost them dearly as they are forced to pay out vast sums of money for royalties and licensing fees just to secure their standing in the sector.”
The data show that while it is the leader in fintech patents among its peers, Bank of America’s portfolio is dwarfed by every major tech companies.
IBM, which has just passed its 107th birthday, has a portfolio five times for numerous in patents than the top fifteen banks’ put together.
Bank of America, however, seems to be the leader when it comes to blockchain-related patents among established businesses, including tech companies.
Now in its sixth year, the AltFi London Summit returns on 18th March 2019 to 155 Bishopsgate. Last year proved to be a crucial turning point for the key players building the future of finance. Leading platforms launched oversubscribed IPOs, digital banks proliferated and mainstream financial institutions started their own disruptive propositions. With 2019 certain to be another landmark year, more questions will be asked by regulators with investor interest in disruption also poised for more rapid growth.