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FinTech sector – Current scenario
The financial services sector is experiencing a great deal of churn. There are several start-ups and newer companies challenging the incumbents. These newentrants are using digital platforms to deliver products and services more efficiently, employing newer business models. The points given below elaborate on thecurrent scenario.
• Incumbent players are facing cost-cutting and increasing regulation.
• New players are providing financial products and services that are digital ready.
• Incumbent players like banks have traditionally used a product-based sales approach.
• New players are focusing on selling along with enhancing convenience and user experience.
• The above trends are forcing the existing financial services players to reinvent themselves and invest in technology for a digital future.
• To prepare themselves for these changes, the incumbent players are doing a combination of the following - all of which have IP implications.
• Investing in FinTech start-ups.
• Eyeing other FinTech start-ups as potential acquisitions.
• Changing their business models around delivering products and services.
• The IP focus is around technology that delivers financial products and services.
• More conveniently.
• Better customer experience.
• Lower cost.
• With new, more efficient business models.
20-10-2015 Copyright © 2015 Relecura Inc., All rights reserved. 2
FinTech sector – Investment activity
• FinTech financial activity has grown from around $928 million in 2008 to$2.97 billion in 2013 and $12.21 billion in 2014.
• Global FinTech investment jumped 201% between 2013 and 2014, breaking $12 billion mark with more than 730 deals.
• US made up the lion’s share and is leading the world in FinTech investments. The rate of the value of startup financing rose nearly 200% from 2013 to 2014.
• Europe showed the highest growth with an increase of 215% YOY to $1.48 billion in 2014.
• Payments are the fastest growing segment under the FinTech umbrella.
• FinTech related M&A activity in 2014:
Transaction volume rose by 8% over 2013, from 343 to 371.
Transaction value increased by 5% over 2013, from $27.37 billion to $28.70 billion.
Payment category transaction volume increased by 44% over 2013, from 95 to 137 and the deals totaled more than one-third of the aggregate volume. (Berkery Noyes Report).
• In the first half of 2015,
There have been 192 FinTech mergers and acquisitions - valued totally at $18.9 billion across 192 deals.
M&A in the Capital Markets segment showed the largest increase in volume 31% rise, from 58 to 76 deals.
The aggregate capital invested into top FinTech companies working in capital markets is $600 million as of April, 2015.
Four out of top 10 deals occurred in the Capital Markets segment.
o SS&C Technologies acquisition of Advent Software (19 patent documents) for $2.6 billion.
o Playtech’s acquisition of Plus500 for $697 million.
• Two of the significant deals of 2014
First Data Corp, a provider of payment processing services found in 1971, raised $3.5 billion in private equity led by KKR.
Lending Club, a peer-to-peer lending platform founded in 2006 raised $865 million on the New York Stock Exchange, valuing its business at $8.5 billion and hitting the record for the biggest US tech IPO of 2014.
• Since 2009, six major banks – Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo have made strategic investments in 30 FinTech tech companies.
20-10-2015 3Copyright © 2015 Relecura Inc., All rights reserved.
FinTech patents - Overview
20-10-2015
• Analysis
• Key findings
• Top patent holders
• Financial categories
• Technology categories
• Technology categories vs.
Financial categories
• Assignee Topic Map
• Comparative Topic Map –
Assignees, Concepts
• Key patent holders – FinTech
companies
• Key patent holders – Banks
• Key patent holders – Other
sectors
• Key patent holders –
Unicorns
• FinTech patents - Dashboard
• Filing trends – overall
• Filing trends – Financial
categories
• Filing trends – Top patent
holders
• Filing trends – By jurisdiction
• Top forward cited assignee
• Top cited patents
• Patent quality
• Top holders of high quality
patents
• Patent transaction trends
• Top patent buyers & sellers
• Key transacted companies
• References
• Appendix A - Methodology
• Appendix B - Search details
4Copyright © 2015 Relecura Inc., All rights reserved.
FinTech patents - Analysis
• FinTech categories employed for analysis:
o Financial Categories
Payment
Banking
Wealth Management
Capital Market
Insurance
Lending
o Technology Categories
Data and Analytics
IOT (Internet of Things)
Mobile Platform
Security
Cloud Computing
Cryptocurrency
• Sub searches are conducted using the classification codes and keywords to arrive at the results for each of the FinTech financial and technology categories.
• By analyzing these patents we determine the key companies holding patents, key companies citing patents, market areas for patent filings, various sector companies active in filing patents, filing trends, holders of patents with high Relecura patent quality, key patents that are heavily cited.
• Patent assignments are analyzed to determine transaction trends, thus identifying key companies buying and selling patents.
• For the key transacted companies, details of funding raised or M&A information (if available) are provided.
20-10-2015 5Copyright © 2015 Relecura Inc., All rights reserved.
FinTech patents – Key findings
• Visa, Bank of America, Hitachi followed by Shinhan Bank and Bizmodeline are the top patent holders of FinTech Patents.
• The top 200 patent holders own only 39% of the FinTech patents in the key categories. Thus the FinTech patents are spread over many assignees.
• Key financial entities holding patents include Bizmodeline, First Data, Diebold followed by Intuit, Chicago Mercantile Exchange and Hartford.
• Key banks holding patents include Visa, Bank of America, Shinhan Bank (Japan), MasterCard and JPMorgan.
• Other sectors active in FinTech include telecom, IT, software, and electronics.
• NTT, Nokia, KT Corp and Qualcomm are some of the Telecom companies with FinTech patent holdings.
• In the IT and software sector - SAP, Accenture, Oracle, Microsoft, Google and Apple have patent assets in the FinTech domain.
• IP commercialization firms like Intellectual Ventures, CFPH, Elwha LLC and Island Intellectual Property LLC are present in this space.
• E-commerce companies like eBay, Amazon and Alibaba are FinTech patent holders.
• Patent filings in FinTech have shown a steady increase in the post 1999
period.
• Top Patent holders such as Visa, Bank of America, and MasterCard have significantly increased their FinTech patent filings after 2007.
• The active markets for FinTech as indicated by the preferred jurisdictions for patent filings by the top players. These are U.S.(#1), Japan (#2), Korea (#3), China (#4) and Europe (#5).
• An increase in patent assignments is seen after 2007, indicating an increased number of transaction activity in recent times.
• Companies acquiring FinTech patents include III holdings, EBay, Western Union, JPMorgan, Google and Inventor Holdings.
• Companies selling FinTech patents include American Express, IBM, Walker Digital, First Data, Bank One and US Bank.
• American Express is involved in both buying and selling patents. It has bought patents from Serve Virtual Enterprises and sold patents to multiple companies including III holdings, Xatra Fund and Propulsion Remote Holdings LLC.
• IBM has sold patents to eBay, Google and Toshiba.
20-10-2015 6Copyright © 2015 Relecura Inc., All rights reserved.
FinTech patents – Top holders
Patent HoldersNo of
Equivalents
% Share of FinTech
EquivalentsVISA 1,342 1.60
BANK OF AMERICA 1,052 1.25HITACHI 1,048 1.25
SHINHAN BANK 907 1.08BIZMODELINE CO LTD 867 1.03
MASTERCARD 808 0.96EBAY 758 0.90IBM 747 0.89OKI 734 0.87
FIRST DATA 603 0.72FUJITSU 596 0.71
SONY 594 0.71TOSHIBA 586 0.70DIEBOLD 566 0.67
JPMORGAN CHASE 532 0.63MICROSOFT 476 0.57
NEC 419 0.50NTT 415 0.49SAP 373 0.44
INTUIT 370 0.44
20-10-2015
Key finding:• The FinTech patent holdings are spread out over several players. There are no players that hold an
overwhelming majority of the patents.
The above results* are based on 145,589 relevant patent documents for FinTech comprising of 79,798 equivalents**.* Results are based on non-expired patents filed in the last 20 years.** An EQUIVALENT refers to a set of patent filings with the same priority documents, representing a single invention.
7Copyright © 2015 Relecura Inc., All rights reserved.
20-10-2015
FinTech patents – Financial Categories
8Copyright © 2015 Relecura Inc., All rights reserved.
FinTech patents – Key patent holders (Financial Categories)
Relecura Assignees Payment Wealth Management Capital Market Insurance Lending Banking
VISA 3,437 20 4 71 3 815
HITACHI 1,540 167 295 114 102 1,133
BANK OF AMERICA 1,070 258 86 74 208 802
OKI 952 30 68 10 23 1,046
JPMORGAN CHASE 760 282 218 50 155 489
FUJITSU 1,115 32 125 73 46 557
MASTERCARD 1,628 10 5 7 4 275
FIRST DATA 1,451 28 8 50 10 393
SONY 1,351 23 86 19 53 334
PAYPAL INC 1,143 109 20 43 64 383
IBM 1,049 103 90 78 67 239
DIEBOLD 1,158 3 1 1 2 285
TOSHIBA 979 33 70 55 16 300
CITI 646 140 106 8 92 371
SHINHAN BANK 290 229 71 22 235 790
BIZMODELINE 617 85 8 1 160 431
AMERICAN EXPRESS 622 120 8 96 78 319
WESTERN UNION 828 16 7 4 48 250
NEC 732 39 80 24 28 287
CHICAGO MERCANTILE EXCHANGE 18 494 530 59 7 14
NTT 805 19 37 20 29 267
III HOLDINGS 1 LLC 622 14 6 4 3 207
MICROSOFT 807 15 9 4 3 55
NOKIA 724 3 0 1 2 7
GOLDMAN SACHS 48 261 273 128 10 29
QUALCOMM 658 6 1 2 0 11
GOOGLE 629 3 4 4 1 24
NCR CORPORATION 627 8 2 2 7 37
THE HARTFORD 31 156 9 468 8 28
EBAY 590 10 18 4 6 41
20-10-2015 9
Key findings:• Visa holds a large number of filings in the payment
category.
• Oki holds a majority of their filings in banking.• The Chicago Mercantile Exchange holds a significant
number of filings in wealth management and capital
market.• Hartford is the key patent holder in the insurance category.
Copyright © 2015 Relecura Inc., All rights reserved.
FinTech patents – Top 10 holders (Financial Categories)
20-10-2015
Rank (based on # of equivalents held)
Payment Banking Wealth Management Capital Market Insurance Lending
1 VISA OKI CHICAGO MERCANTILE EXCHANGE
CHICAGO MERCANTILE EXCHANGE
THE HARTFORD SHINHAN BANK
2 HITACHI HITACHI SHINHAN BANK HITACHI USAA BIZMODELINE
3 MASTERCARD SHINHAN BANK JPMORGAN CHASE DAIWA SECURITIES GROUP INC
HITACHI BANK OF AMERICA
4 EBAY BANK OF AMERICA GOLDMAN SACHS GOLDMAN SACHS ACCENTURE JPMORGAN CHASE
5 OKI BIZMODELINE CO LTD BANK OF AMERICA JPMORGAN CHASE SWISS RE FANNIE MAE
6 BANK OF AMERICA FUJITSU HITACHI TRADING TECH INT INC GOLDMAN SACHS WOORIBANK
7 SONY VISA MORGAN STANLEY FUJITSU IBM HITACHI
8 BIZMODELINE CO LTD JPMORGAN CHASE DAIWA SECURITIES GROUP INC
MUFG TOKIO MARINE MUFG
9 FIRST DATA MUFG ACCENTURE CFPH LLC STATE FARM CAPITAL ONE
10 DIEBOLD NEC BIZMODELINE ITG SOFTWARE SOLUTIONS INC
BANK OF AMERICA / THE TRAVELERS COMPANIES
GE
10Copyright © 2015 Relecura Inc., All rights reserved.
FinTech patents – Key findings (Financial Categories)
20-10-2015
FinTech Category No of Equivalents Top Patent Holders Top Cited Companies Patent Holders of high Quality Key companies Buying Patents
Payment 50,446Visa, Hitachi, MasterCard, Ebay, Oki and Bank of America
Visa, IBM, Bank of America, Microsoft and American Express
Visa, First Data, Diebold and JPMorgan eBay, HP, Verizon, PayPal, Google, Visa, Qualcomm,
Banking 21,571Oki, Hitachi, Shinhan Bank, Bank of America, Bizmodeline and Fujitsu
Bank of America, IBM, JPMorgan, Visa and American Express
JPMorgan, Visa, Bank of America and First Data
JPMorgan, PayPal, MasterCard and Intuit
Wealth management 12,011
Chicago Mercantile Exchange, Shinhan Bank, JPMorgan, Goldman Sachs and Bank of America
IBM, Bank of America, JPMorgan and Chicago Mercantile Exchange
Chicago Mercantile Exchange, Trading Tech Int Inc, JPMorgan, Goldman Sachs and Bank of America
E*trade Financial Corp, Verisign and Fair Isaac Corp
Capital market 9,489
Chicago Mercantile Exchange, Hitachi, Daiwa Securities, Goldman Sachs and JPMorgan
BGC Partners, Chicago Mercantile Exchange, Trading Technologies Int Inc, CFPH LLC and JPMorgan
Chicago Mercantile Exchange, Trading Tech Int Inc, JPMorgan, CFPH LLC and BCG Partners Inc
Thomson Reuters, ITG Software, Chicago Mercantile Exchange
Insurance 6,652
Hartford, USAA, Hitachi, Accenture followed by Swiss RE and Goldman Sachs
Hartford, IBM, Genworth, USAA and Bank of America
Hartford, IBM, Genworth, USAA, Bank of America and Allstate
Massachusetts Mutual Life Insurance Company, AIG, Swiss Reinsurance Company Ltd, Trizetto Group and Prudential Financial
Lending 6,592Shinhan Bank, Bizmodeline, Bank of America, JPMorgan and Fannie Mae
Bank of America, Fannie Mae, IBM, JPMorgan, USAA and American Express
Fannie Mae, JPMorgan, Metabank, Bank of America, PayPal and American Express
Barclays, First Data Corp, Bank of America, Verifone, Altisource Solutions
• FinTech financial categories considered for this study include payment, banking, wealth management, capital market, insurance and lending.
• There has been increased filing in many of these categories, starting in late 90’s and early 2000’s. The filings were flat till 2010-2011, after which they have been steadily increasing.
• Payment is the key FinTech financial category garnering over 60% of FinTech patents we studied.
• A summary of the key findings by FinTech financial category is given below.
11Copyright © 2015 Relecura Inc., All rights reserved.
FinTech patents – Technology Categories
• Key enabling technology categories in the FinTech space include Data and Analytics, Internet-of-Things (IOT), Mobile platform, Security, Cloud Computing, and Cryptocurrency.
• The FinTech patents have been partitioned based on the above and some quick facts are given below.
20-10-2015 12
Technology No of FinTech Equivalents Key Patent holders
Data & Analytics 29,955HITACHI, OKI, SHINHAN BANK, TOSHIBA, SONY, BIZMODELINE, FUJITSU, NTT, NEC, VISA
IOT 29,946HITACHI, VISA, SONY, MASTERCARD, NTT, NEC, PAYPAL INC, BANK OF AMERICA, SHINHAN BANK, IBM
Mobile Platform 19,412VISA, BIZMODELINE, MASTERCARD, BANK OF AMERICA, PAYPAL INC, QUALCOMM, FIRST DATA, DIEBOLD, SHINHAN BANK, NOKIA
Security 11,674VISA, HITACHI, BANK OF AMERICA, IBM, OKI, FIRST DATA, MASTERCARD, TOSHIBA, MICROSOFT, NTT
Cloud Computing 7,230IBM, VISA, DIEBOLD, AMERICAN EXPRESS, MICROSOFT, MASTERCARD, BIZMODELINE, ACCENTURE, III HOLDINGS 1 LLC, INTUIT
Cryptocurrency 714VISA, BANK OF AMERICA, MASTERCARD, PAYPAL INC, OBOPAY INC, ELWHA LLC, KONAMI, QUALCOMM, APPLE, SEARETE
Copyright © 2015 Relecura Inc., All rights reserved.
FinTech patents - Technology vs. Financial Categories(Patent counts)
• Relecura’s Bucketing Module has been used to partition the FinTech patents based on (i) Financial Categories (financial product or service) and (ii) Enabling technologies employed, i.e. Technology Categories.
• Patent counts for the intersection of each of the Financial Categories (Columns) and Technology Categories (Rows) are shown below.
20-10-2015 13Copyright © 2015 Relecura Inc., All rights reserved.
Payment Banking Wealth Management Capital Market Insurance Lending
Data & Analytics 18,447 8,736 4,154 3,278 2,679 2,353
IOT 21,994 6,738 2,708 2,856 1,443 1,957
Mobile Platform 16,426 3,229 827 567 609 763
Security 8,540 2,602 1,330 1,424 639 790
Cloud Computing 4,585 1,365 984 612 556 516
Cryptocurrency 597 113 57 28 15 58
Financial Categories
Tech
no
logy
Cat
ego
rie
s
FinTech patents – Technology vs. Financial Categories(Key patent holders)
20-10-2015 14Copyright © 2015 Relecura Inc., All rights reserved.
Payment Banking Wealth Management Capital Market Insurance Lending
Data & Analytics18,447
Hitachi (475)Sony (391)
8,736Hitachi (360)
Oki (353)
4,154Shinhan Bank (85)
Hitachi(68)
3,278Daiwa Securities Group (91)
MUFG (48)
2,679The Hartford (163)
Hitachi (46)
2,353Shinhan Bank (91)Bizemodeline (77)
IOT21,994
Hitachi (390)Visa (322)
6,738Hitachi (200)
Shinhan Bank (176)
2,708Trading Tech Int Inc (43)
JPMorgan Chase (40)
2,856Hitachi (67)
Trading Tech Int Inc (57)
1,443The Hartford (37)
Accenture (15)
1,957Shinhan Bank (37)Bizemodeline (32)
Mobile Platform16,426
Visa (654)MasterCard (257)
3,229Visa (126)
Shinhan Bank (93)
827Bizmodeline (24)Woori Bank (20)
567Mitake Co Ltd (19)
Orbis Patents Lts (10)
609The Hartford (32)State Farm (21)
763Bizemodeline (30)Shinhan Bank (19)
Security8,540
Visa (245)Hitachi (144)
2,602Hitachi (111)
Oki (82)
1,330ITG Software (29)
Goldman Sachs (28)
1,424Hitachi (35)
Goldman Sachs (33)
639The Hartford (19)ITG Software (18)
790Shinhan Bank (35)Freddie Mac (18)
Cloud Computing4,585
Visa (107)Diebold (89)
1,365American Express (44)
Capital One (25)
984GE (32)
American Express (15)
612Accenture (12)
Blackbird Holdings (12)
556The Hartford (39)State Farm (21)
516American Express (23)
Rawllin International (12)
Cryptocurrency597
Bank of America (13)MasterCard (12)
113PayPal (4)Sony (4)
57American Express (4)
Content Technologies (3)
28Phone1 Inc (2)
15Zynga Inc (4)
Digonex Technologies (2)
58IBM (3)
Socolof Alex (3)
Financial Categories
Tech
no
logy
Cat
ego
rie
s
FinTech patents – Assignee Topic Map
20-10-2015
Key findings:• The size of the bubble denotes the number of patent assets held by the
company and the proximity of the bubbles indicates the similarity between the portfolios, in terms of technologies addressed.
• For example Visa and Hitachi are far apart, indicating that their patents address dissimilar technologies, whereas the proximity between Visa and American Express points to a similarity in the technologies addressed by their individual portfolios.
15Copyright © 2015 Relecura Inc., All rights reserved.
FinTech patents – Comparative Topic Map (Assignees)
20-10-2015 16
The Comparative Topic Map of patent holders for the FinTech categories.
Absolute count comparison: The size of each bubblerepresents the number of patent equivalents across portfolios and the colored sectors represent relative number of equivalents in the respective portfolios of each category.
Copyright © 2015 Relecura Inc., All rights reserved.
FinTech patents – Comparative Topic Map (Concepts)
20-10-2015 17
The Comparative Topic Map of concepts for the FinTech categories.
Absolute count comparison: The size of each bubblerepresents the number of patent equivalents across categories and the colored sectors represent relative number of equivalents in the respective portfolios of each category.
Copyright © 2015 Relecura Inc., All rights reserved.
FinTech patent holders – Pure-play FinTech companies
20-10-2015
FinTech Companies No. of Equivalents
BIZMODELINE CO LTD 867
FIRST DATA 603
DIEBOLD 566
INTUIT 370
CHICAGO MERCANTILE EXCHANGE 297
THE HARTFORD 292
USAA 278
KOREA INF & COMM CO LTD 202
DAIWA SECURITIES GROUP INC 164
GLORY KOGYO 163
CHINA UNIONPAY CO LTD 121
GIESECKE & DEVRIENT 121
NAUTILUS HYOSUNG INC 104
ITG SOFTWARE SOLUTIONS INC 98
CUMMINS ALLISON CORP 97
FANNIE MAE 97
TRADING TECH INT INC 96
SQUARE INC 83
SWISS RE 80
BGC PARTNERS INC 78
FinTech Companies No. of Equivalents
BOKU, INC. 76
CHECKFREE CORP 75
FMR LLC 75
WINCOR NIXDORF 74
SHACOM COM INC 61
DISCOVERY HOLDINGS LTD 58
T MONET CO LTD 58
BCCARD CO LTD 56
GENWORTH 56
STATE FARM 55
SYNCADA LLC 52
THINKPOOL CO LTD 52
FAIR ISAAC CORPORATION 51
TOKIO MARINE 51
VERIFONE INC 51
ALLSTATE 50
FREDDIE MAC 50
OMX TECHNOLOGY AB 50
THE TRAVELERS COMPANIES 50
AIG 49
FinTech Companies No. of Equivalents
PRUDENTIAL FINANCIAL 49
BITWALLET INC 48
FISERV 48
BLACKHAWK NETWORK 47
MONEYGRAM INTERNATIONAL, INC. 43
METAVANTE CORP 42
YODLEE INC 41
KOREA SMART CARD CO LTD 40
SHINHAN CARD CO LTD 38
KOREA FINANCIAL TELECOMM & CLEARINGS INST 37
TRADING TECHNOLOGIES INT INC 37
TENDYRON TECHNOLOGY CO LTD 36
CHARLES SCHWAB 35
AMERIPRISE FINANCIAL 34
MS&AD INSURANCE 34
CHICAGO BOARD OPTIONS EXCHANGE, INCORPORATED 33
FUJIAN LANDI COMMERCIAL EQUIP 33
HAREXINFOTECH INC 33
NIPPON CONLUX 33
PAYPAL, INC. 33
The above list is arrived by considering the top 200 patent holders from the overall FinTech patents set, and then categorizing the type of patent holder.
18Copyright © 2015 Relecura Inc., All rights reserved.
FinTech patent holders - Banks
Banks No of Equivalents
VISA 1,342
BANK OF AMERICA 1052
SHINHAN BANK 907
MASTERCARD 808
JPMORGAN CHASE 532
CITI 353
AMERICAN EXPRESS 335
WESTERN UNION 301
CAPITAL ONE 245
GOLDMAN SACHS 245
INDUSTRIAL BANK KOREA 232
MUFG 232
WOORIBANK 206
20-10-2015
Banks No of Equivalents
INDUSTRIAL COMMERCIAL BANK OF CHINA 153
BARCLAYS 138
MORGAN STANLEY 130
HANA BANK 120
WELLS FARGO 111
CHINA CONSTRUCTION BANK 101
INFOBANK 99
MIZUHO BANK LTD 89
UBS 80
BNY MELLON 59
KOOKMIN BANK CO LTD 55
METABANK 55
TORONTO-DOMINION BANK 39
HSBC 37
19Copyright © 2015 Relecura Inc., All rights reserved.
FinTech patent holders – Other sector companies I
Includes sectors such as Telecom, Information Technology, Electronics, conglomerates and others.
20-10-2015
Telecom
Company No of Equivalents
NTT 415
NOKIA 221
KT 218
QUALCOMM 202
ERICSSON 181
SK TELECOM 280
ZTE 131
ALCATEL-LUCENT 125
AT&T 120
HUAWEI 115
VERIZON 111
ORANGE 107
BLACKBERRY 86
DEUTSCHE TELEKOM 77
BELLSOUTH 72
SPRINT 59
VODAFONE 51
KONINKLIJKE KPN 48
BROADCOM 44
MOTOROLA 44
SWISSCOM AG 42
CHINA MOBILE 32
CUBIC CORP 61
CISCO 50
Multi Industry companies
Company No of Equivalents
IBM 747
SONY 594
TOSHIBA 586
LG 271
SAMSUNG 258
PANASONIC 257
GE 246
SIEMENS 239
SUMITOMO 170
MITSUBISHI 86
PHILIPS 64
Electronics manufacturing
Company No of Equivalents
OKI 734
NEC 419
NCR 344
CANON 129
SEIKO 103
INTEL 98
RICOH 82
CASIO 72
SHARP 72
FUJI ELECTRIC 60
FOXCONN 50
KYOCERA 37
NXP 38
Information Technology
Company No of Equivalents
SAP 373
ACCENTURE 302
ORACLE 213
NOMURA RES INST LTD 136
YAHOO 95
JAPAN RES INST LTD 70
BEIJING PARAGON TECH CO LTD
61
COMPUTER SCIENCES CORPORATION
54
INTERTRUST TECH CORP 47
TATA CONSULTANCY SERVICES 45
SK C&C CO LTD 40
INFOSYS LTD 34
FACEBOOK 53
20Copyright © 2015 Relecura Inc., All rights reserved.
FinTech patent holders – Other sector companies II
20-10-2015
IP commercialization firms
Company No of Equivalents
III HOLDINGS LLC 303
CFPH LLC 148
INVENTOR HOLDINGS, LLC 81
INTELLECTUAL VENTURES 66
SIGNATURE SYSTEMS LLC 50
SEARETE 40
ELWHA LLC 36
ISLAND INTELLECTUAL PROPERTY LLC
35
Hardware & Software
Company No of Equivalents
FUJITSU 596
MICROSOFT 476
GOOGLE 289
HP 274
APPLE 142
Gaming
Company No of Equivalents
IGT 114
SANKYO 75
UNIVERSAL ENTERTAINMENT
47
CANTOR INDEX LLC 37
Retailers
Company No of Equivalents
TARGET 70
WALMART 41
E-commerce
Company No of Equivalents
EBAY 758
AMAZON 162
ALIBABA 143
PITNEY BOWES 138
RAKUTEN 88
SK PLANET CO LTD 83
Others
Company No of Equivalents
DNP 143
TENCENT 130
GEMALTO 110
THOMSON REUTERS 91
JINFU HUANG 74
FUJIFILM 70
XEROX 68
OMRON 64
CUBIC CORP 61
ETRI, KOREA 55
SILVERBROOK RESEARCH 54
GILBARCO INC 53
TOPPAN 50
UNITED PARCEL SERVICE 45
DIGIMARC 45
HYUNDAI 42
HEADWATER PARTNERS I LLC 39
SYMBOL TECHNOLOGIES 38
SCHLUMBERGER 35
WALKER DIGITAL 34
RAWLLIN INTERNATIONAL INC. 33
21Copyright © 2015 Relecura Inc., All rights reserved.
FinTech patents – Unicorns* and Near-Unicorns
20-10-2015
*Unicorn – a term currently in vogue for a start-up that has a US $1 billion valuation or more.
22
Unicorns (valuation > $1 Billion)
FinTech category operating in # Patent Equivalents held
Valuation($ Billion)
Square Payments 143 6.0
Stripe Payments 1 5.0
Powa Technologies Payments 17 2.7
Klarna Payments 2 2.2
Wonga Lending 16 2.2
Zuora Payments 4 1.5
On Deck Capital Lending 5 1.3
Mozido Payments 58 1.2
IEX Group Capital Market / Investing 3 0.9
Near Unicorns (valuation $500
Million - $ 1 Billion)
FinTech category operating in # Patent Equivalents held
Valuation($ Billion)
iZettle Payments 16 0.8
Kabbage Lending 12 0.8
Ezbob Lending 1 0.6
Zopa Lending 4 0.5
Bill.com Payments 16 0.5
Wepay Payments 2 0.5
Receivables Exchange Lending 1 0.1
Copyright © 2015 Relecura Inc., All rights reserved.
Pure-play FinTech patents – Dashboard snapshot
• Click here to see the Relecura Dashboard for the patents of the pure-play FinTech players. (May take some time to load. No Relecura account is required).
• Relecura Dashboards provide a dynamic snapshot of the key parameters of a portfolio.
• Dashboards can be customized by selecting the preferred widgets to display information of interest to viewers.
• Relecura Dashboards may be shared with collaborators and external parties.
20-10-2015 23Copyright © 2015 Relecura Inc., All rights reserved.
FinTech patents – Filing trends
20-10-2015
Key findings:• An initial increase in filings is observed from 1999 to 2001, followed by a plateau.• A more recent spurt in filings is shown from 2011 onwards.
24Copyright © 2015 Relecura Inc., All rights reserved.
FinTech patents - Filing trends (Financial categories)
20-10-2015 25
Key findings:• An initial increase in filings is observed from 1999 to 2001 in all the sectors, followed by a plateau.• Payment is the most actively filed sector throughout, followed by wealth management and capital markets.
Copyright © 2015 Relecura Inc., All rights reserved.
FinTech – Filing trends of the top patent holders
Key finding:
• Top Patent holders like Visa, Bank of America, and MasterCard have ramped up their filings post 2007.
• There is a large spike in the filings of Shinhan Bank between 2006 and 2009 which has hence tapered off.
• IBM which had a decrease in its FinTech patent filings after 2001, have again started filing FinTech related patents in 2012.
• Interestingly Sony filed for a number of FinTech patents in the period 2000-2004. The filing decreased subsequently.
• MasterCard significantly increased its FinTech patent filings in 2013.
• eBay increased its patent filings in this area post 2011.
• First Data was very active in filing in this area between 2002 – 2008 followed by a decrease thereafter.
20-10-2015 26Copyright © 2015 Relecura Inc., All rights reserved.
FinTech – Filings by jurisdiction
20-10-2015
Top CountriesNo of
Applications% Share of FinTech
Applications
US 45,410 38.07
JP 16,978 14.23
WO 13,958 11.70
KR 9,902 8.30
CN 8,178 6.86
EP 7,630 6.40
CA 4,596 3.85
AU 4,491 3.76
DE 1,516 1.27
GB 1,087 0.91
TW 887 0.74
IN 589 0.49
MX 526 0.44
RU 470 0.39
FR 463 0.39
NZ 318 0.27
ES 309 0.26
BR 292 0.24
SG 225 0.19
AT 162 0.14
Others 221 0.19
Key finding:More than 70% of the FinTech patent filings are in the following jurisdictions – i.e. USA, Japan,Korea, China and Europe – indicating the key markets for this area.
27Copyright © 2015 Relecura Inc., All rights reserved.
FinTech patents - Top forward cited assignee
20-10-2015
Key finding:• IBM, Bank of America, Visa, Microsoft and American Express are the top forward citers of FinTech
patents indication active on-going research in this area.
28Copyright © 2015 Relecura Inc., All rights reserved.
FinTech patents - Top cited patents
20-10-2015
Publication Number
Title Filing Date Star Rating
Relecura Assignee Forward Citations Count
Self Citations
Cited by Others
US5892900ASystems and methods for secure transaction management and electronic rights protection
1996-08-30 4 INTERTRUST 2617 120MICROSOFT(211), SONY(156), DIGIMARC(133), CONTENTGUARD HOLDINGS INC(104), HEADWATER PARTNERS I, LLC(61)
US5794207AMethod and apparatus for a cryptographically assisted commercial network system designed to facilitate buyer-driven conditional purchase offers
1996-09-04 4 PRICELINE.COM LLC 2029 40JPMORGAN CHASE(147), EBAY(65), CITRIX SYSTEMS(53), INVENTOR HOLDINGS LLC(44), WESTERN UNION(43), ORACLE(39)
US5710887AComputer system and method for electronic commerce
1995-08-29 3.5 BROADVISION 1701 0JPMORGAN CHASE(134), RPX(105), MICROSOFT(66), IBM(40), INGENIO, LLC(40), EWINWIN INC(37), EBAY(34), ORACLE(34), USA TECH INC(32)
US5960411AMethod and system for placing a purchase order via a communications network
1997-09-12 4 AMAZON 1621 78RPX(106), JPMORGAN CHASE(82), ROVI(58), CASCADE MICROTECH INC(46), MUSIC CHOICE(34), IBM(31), III HOLDINGS 1, LLC(31), EWINWIN, INC(30)
US6021397A Financial advisory system 1997-12-02 4FINANCIAL ENGINES,
INC.962 11
MILLENNIAL MEDIA INC(68), JPMORGAN CHASE(51), METABANK(40), GOLDMAN SACHS(36), MICROSTRATEGY INC(30)
US5883810AElectronic online commerce card with transactionproxy number for online transactions
1997-09-24 3.5 MICROSOFT 937 7JPMORGAN CHASE(194), III HOLDINGS LLC(62), VISA(41), FIRST DATA(40), LEAD CORE FUND LLC(38), XATRA FUND MX LLC(28)
US5757917AComputerized payment system for purchasing goods and services on the internet
1995-11-01 3.5 PAYPAL, INC. 916 5RPX(103), JPMORGAN CHASE(90), FIRST DATA(66), WESTERN UNION(65), III HOLDINGS LLC(36), PRICELINE.COM LLC(28), XATRA FUND MX LLC(25), TRANSACTION HOLDINGS LTD LLC(23), GOOGLE(21)
US5794219AMethod of conducting an on-line auction with bid pooling
1996-02-20 3.5GENERALE MICRO
FR LLC872 4 EBAY(137), SANOFI(92), BOSCH(47), ARIBA INC(37), PRICELINE.COM LLC(28), LIVE NATION(25))
US5815665ASystem and method for providing trusted brokering services over a distributed network
1996-04-03 3.5 MICROSOFT 867 36CISCO(57), AMAZON(49), SONY(34), VERIZON(33), HP(30), JPMORGAN CHASE(29), FACEBOOK(26), IBM(21), INTEL(21)
US6260024B1Method and apparatus for facilitating buyer-driven purchase orders on a commercial network system
1998-12-02 4OPEN INVENTION
NETWORK LLC836 4
EWINWIN INC(38), APPLE(36), FIRST DATA(36), WESTERN UNION(34), SAP(33), RESTAURANT SERVICES INC(30), JUNE RAY LTD(29), EBAY(23), IBM(22), GOOGLE(17)
Key findings:• All of the top cited patents were filed in the late 1990s.• The top cited patent by Intertrust addresses secured financial transactions and is cited a lot by Microsoft, Sony and Digimarc.• Microsoft holds two patents in the list of top cited patents.
29Copyright © 2015 Relecura Inc., All rights reserved.
FinTech patents – Patent quality
20-10-2015
Key findings:• Very few patents in this technology area have a star rating* of 3 and above• Oki, Shinhan Bank and Bizmodeline doesn’t hold any patents with a Relecura Patent Quality of 3 or above.
* The Relecura Patent Quality is a star rating (out of 5) calculated for each patent using proprietary algorithms.
30Copyright © 2015 Relecura Inc., All rights reserved.
FinTech high quality* patents – Top holders
20-10-2015
* “High quality” patent – Patents with a Relecura Patent Quality star rating of 3 or above (out of 5).* 10,161 filings are deemed “high quality”.** Percentage of high quality patent filings owned by the organization.
Key finding: Visa, Diebold, First Data, Bank of America and JPMorgan are the top holders of the high quality* FinTech patents.
Patent HolderNumber of high quality*
applicationsShare** of high quality
applications
VISA 352 3.46
DIEBOLD 186 1.83
FIRST DATA 183 1.80
BANK OF AMERICA 180 1.77
JPMORGAN CHASE 167 1.64
PAYPAL, INC. 138 1.36
MASTERCARD 124 1.22
III HOLDINGS 1, LLC 118 1.16
WESTERN UNION 107 1.05
GOOGLE 98 0.96
IBM 91 0.90
MICROSOFT 91 0.90
AMERICAN EXPRESS 86 0.85
QUALCOMM 81 0.80
CITI 78 0.77
ACCENTURE 76 0.75
THE HARTFORD 76 0.75
AMAZON 70 0.69
CUMMINS ALLISON CORP 68 0.67
SAP 68 0.67
Patent HolderNumber of high quality*
applicationsShare** of high quality
applications
SONY 67 0.66
CAPITAL ONE 54 0.53
ORACLE 53 0.52
GOLDMAN SACHS 52 0.51
CFPH LLC 51 0.50
AT&T 50 0.49
IGT 50 0.49
INVENTOR HOLDINGS, LLC 49 0.48
INTUIT 48 0.47
APPLE 47 0.46
NOKIA 47 0.46
CHICAGO MERCANTILE EXCHANGE 46 0.45
TRADING TECH INT INC 45 0.44
VERIZON 45 0.44
GE 44 0.43
HP 44 0.43
EBAY 37 0.36
BOKU, INC. 31 0.31
COMPUTER SCIENCES CORPORATION 31 0.31
YAHOO 30 0.30
31Copyright © 2015 Relecura Inc., All rights reserved.
FinTech patents – Transaction trends
20-10-2015
Key findings: FinTech transactions show a steady upward trend with a spurt after 2007.The above results* are based on transactions of 7,946** FinTech patent documents.* Results are based on non-expired patents filed in the last 20 years. The results set is cleaned by removing the patent transactions between the same company, patents mortgaged to bank and inventor transactions.** The results set is grouped by applications, which gives one transaction for both the published application and granted document together
32Copyright © 2015 Relecura Inc., All rights reserved.
FinTech – Top patent buyers
20-10-2015 33Copyright © 2015 Relecura Inc., All rights reserved.
FinTech – Top patent sellers
20-10-2015 34Copyright © 2015 Relecura Inc., All rights reserved.
FinTech – Patent transaction summary
Buyer Seller No of Applications
III Holdings 1, LLC American Express 378
eBay
IBM 128
Others 39
Walker Digital 34
Western Union First Data 154
JPMorgan Chase Bank One 113
GoogleIBM 14
Motorola Mobility 28
Inventor Holdings, LLC Walker Digital 79
Toshiba IBM 72
Bank of America Merrill Lynch & CO INC 42
Xatra Fund MX, LLC American Express 69
Barclays Lehman Brothers INC 49
IGT Walker Digital 55
Lead Core Fund, L.L.C. American Express 56
HP Electronic Data Systems 32
Syncada LLC US Bank 50
Wells Fargo Wachovia 40
American Express Serve Virtual Enterprises 31
Nant Holdings IP, LLC Evryx Acquisition, LLC 40
Propulsion Remote Holdings, LLC American Express 23
Teradata US INC NCR 30
20-10-2015
Key findings:
• American Express sold patents to multiple companies including III Holdings 1 LLC, Xatra Fund and Propulsion Remote Holdings LLC.
• IBM sold patents to eBay, Google and Toshiba.
• Google acquired patents from IBM and Motorola Mobility.
• Key patent buys by Banks
• JPMorgan from Bank One Corp.
• Bank of America from Merrill Lynch & Co Inc.
• Barclays from Lehman Brothers Inc.
• Wells Fargo from Wachovia
• American Express from Serve Virtual Enterprises
• Key patent buys from Banks
• III Holdings 1 LLC, Xatra Fund MX LLC, Lead Core Fund LLC, Propulsion Remote Holdings LLC from American Express
• US Bank to Syncada LLC
35Copyright © 2015 Relecura Inc., All rights reserved.
References
References for the overall FinTech sector:
• Bank Systems & Technology Connecting The Banking Community, InformationWeek, June 2014, http://goo.gl/RFemXV
• The Future of FinTech and banking: Digitally disrupted or reimagined?, Accenture, http://goo.gl/gZyID9
• The Future of FinTech and Banking: Global Fin Tech Investment Triples In 2014, CB Insights, March 2015, https://goo.gl/uqMt3E
• Global FinTech Financing Activity, Business Insider, June 2015, http://goo.gl/U2GDlh
• Growth in FinTech Investment Fastest in European Market, Accenture Study, March 2015, http://goo.gl/ZsUO6b
• Financial Technology and Information Industry Trends Report 2014 Full Year , Berkery Noyes, January 2015, http://goo.gl/ZWSByb
• Payments and capital markets sectors dominate FinTech M&A activity, Berkery Noyes, July 2015, http://goo.gl/FWcLEK
• The Future of FinTech and Banking: Global Fin Tech Investment Triples In 2014, CB Insights, March 2015, https://goo.gl/uqMt3E
• Here’s Where 6 Banking Giants Are Placing Their Bets On FinTech Startups, CB Insights, July 2015, https://goo.gl/lbIaHs
• Benzinga FinTech Awards aim to create wealth in capital markets, Futures,
April 2015, http://goo.gl/aHLy6h
• Fintech Unicorn List Q2 2015: An Estimated 46 Have Arrived + 38 On Their Trails, Finovate, July 2015,http://goo.gl/aZ0EPF
References for the FinTech categorization to determine the Financial categories and Technology categories:
• The Future of Financial Services: How disruptive innovations are reshaping the way financial services are structured, provisioned and consumed, World Economic Forum, June 2015, http://goo.gl/IMLxPz
• Innovation and changing consumer behaviours driving FinTech investment and M&A, Mergers Alliance, April 2015, http://goo.gl/vxnvAF
• FinTech blog - http://reubenlevy.me/
20-10-2015 Copyright © 2015 Relecura Inc., All rights reserved. 36
Appendix A – Patent Search - Methodology
• Patent search is conducted using keywords and classification codes related to FinTech.
• The patents filed in the last 20 years are considered for analysis.
• The expired patents are omitted from the analysis.
• Sub-searches on the FinTech superset are conducted to identify patents related to the various categories based on the specific financial product or service they address.
• The categories searched for include payment, banking, wealth management, capital market, insurance, and lending.
• An assignment search is conducted to get a list of transfer records for FinTech patents and its categories - to identify the key companies involved in transacting patents in this domain.
20-10-2015 37Copyright © 2015 Relecura Inc., All rights reserved.
Appendix B – Patent search - Classification codes used with keywords
20-10-2015
FinTech Complete
CPC Codes Description
G06Q 20/00 Data processing systems for payment architectures, schemes or protocols
G06Q 40/00 Data processing systems for finance, insurance, tax strategies
G06Q 2220/00 Business processing using cryptography
IPC Codes Description
G06Q 20/00 Data processing systems for payment architectures, schemes or protocols
G06Q 40/00 Data processing systems for finance, insurance, tax strategies
Payment
CPC/IPC Codes Description
G06Q 20/00 Data processing systems for payment architectures, schemes or protocols
Banking
CPC/IPC Codes Description
G06Q 40/02 Banking
Capital Market & Wealth Management
CPC/IPC Codes Description
G06Q 40/06 Investment
Insurance
CPC/IPC Codes Description
G06Q 40/08 Insurance
Lending
CPC/IPC Codes Description
G06Q 20/24 Credit schemes
CPC Code Description
G06Q 40/025 Credit processing or loan processing,
38Copyright © 2015 Relecura Inc., All rights reserved.
Disclaimer
20-10-2015
This document is provided for information purposes only and the contents hereof are subject to change without notice. This document,including the information and analysis and any opinion or recommendation, is neither legal advice nor intended for investment purposes. Thisdocument is not warranted to be error-free, nor subject to any other warranties or conditions, whether expressed orally or implied in law,including implied warranties and conditions of merchantability or fitness for a particular purpose. Relecura Inc. specifically disclaims anyliability with respect to this document and no contractual obligations are formed either directly or indirectly by this document.
Relecura is a web-based patent and portfolio analysis platform that uses a knowledge discovery framework to simplify IP analysis for prior-artsearch, technology landscaping, competitive intelligence, and IP commercialization activities. For more details visit www.relecura.com or writeto [email protected].
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39Copyright © 2015 Relecura Inc., All rights reserved.