Leading companies across the globe are focusing on blockchain technology considering the wide range of industrial benefits it promises. Global blockchain patents are majorly focused on banking and financial services industry, followed by manufacturing, telecom among other industries. It is estimated that as of October 2018, over 1,100 patents were applied by companies operating in BFSI and the patents were registered by both technology companies as well as financial services institutions.
CHART: BLOCKCHAIN PATENTS APPLIED AS OF OCTOBER 2018
The above chart showcases the leading companies by its patents applied and it highlights some of the banks namely, Bank of America, peoples Bank of China, and JP Morgan Chase and Wells Fargo are driving the blockchain market in banking industry.
- Unlike other industries, banks are focusing on developing blockchain technology leveraging their inhouse teams, which highlights the push for digitalization as well as the need for compliance and security within banks
- Tech giants such as Intel, Microsoft, Google, Accenture and IBM are focusing on BFSI industry owing to the increasing opportunities with blockchain within core banking and payment services
- Payment technology enablers and payment network service providers including, Tencent, Visa, Paypal, American Express are focusing on developing blockchain technology in P2P and cross-border payments.
- The trend towards bitcoin and crypto currencies is expected to continue despite the sanctions from various central banks
- Companies including Goldman Sachs, Bank of America, Coinbase, Mastercard have registered patents related to crypto currencies to accomplish legal-tender transfers. Also, some of these patents are aimed at decentralizing the digital currencies to secure transactions
Analyst view point
The increasing push towards blockchain technology by banking & financial services instructions highlights the wide range of use cases of blockchain technology. It is expected that banks and financial services companies would improve their efficiencies by up to 15% while reducing its operational expenditure. The increasing number of patents applied by the leading banks is due to the need for creating customized blockchain use cases for their core banking operations and payment services. Also, it highlights the need for more secured data processing and storage services for banks to excel blockchain offerings.
Worldwide Cryptocurrency and Blockchain Technology Market – By Verticals (BFSI, Retail, Media & Entertainment, Gaming Industry, Healthcare, Travel & Tourism, Transportation & Logistics, Education and Others) and Regions (Americas, Europe, Asia-Pacific, and MEA): Drivers, Opportunities, Trends and Forecasts, 2016-2022