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Analyzing Fintech Patents – Latest Blockchain and Fintech Patent Examples (2023)

Blockchain technology, which combines hardware and electronics, software, and cryptography, is changing the way global transactions are handled. It removes friction between transacting parties and sometimes eliminates the need for an intermediary.

Innovation and Patents in the Blockchain and Fintech Industry

Blockchain technology is being used by a wide range of industries, from healthcare to banking, to manage supply chains, to credential healthcare professionals, and many other uses.

Fintech (financial technology) covers certain uses of blockchain technology (such as cryptocurrencies), but it encompasses more than just blockchain-based solutions. This includes patented apps that provide for mobile banking technology, investing services, and “smart card technology” for secure payments.

The Fintech industry is characterized by the convergence of software, hardware, and digital security technology and as such, the principles behind patenting technology and strategies for protecting intellectual property relating to technology remain the same.

Fintech Innovations in 2023

If you’ve been following the news, you know that a whole host of innovative new technologies are on their way. These innovations range from Artificial Intelligence to Embedded Finance to Metaverse. It’s time to consider how they will change the way we work, interact with other people and do business in the coming years.

Embedded finance

The embedded finance and fintech innovations in 2023 will have a big impact on the way consumers interact with financial services. It will also provide companies with a more direct path to engage with their customers on a personal level. In the past, businesses had to turn to third-party providers to offer customers access to financial services. This is no longer the case. As a result, this technology is expected to be one of the most important and significant trends in the industry.

Embedded finance allows financial institutions to deliver a range of benefits, such as increased efficiencies and cost reductions. The technology also promises to improve the user experience and enable new revenue streams.

One of the most popular embedded finance companies is Stripe. Another is Amazon, which uses the technology to power its Amazon Pay service. These examples are just a few of the many applications of the tech.

The adoption of this technology will lead to a number of other fintech innovations in 2023. For example, payments will become much faster and convenient. Companies will also be able to increase customer loyalty and satisfaction through this technology.

The adoption of this technology will also benefit underserved consumer groups. This will have a multiplier effect on all industries.

The emergence of Banking-as-a-Service will also help legacy players to create unique offerings. This will allow financial institutions to focus on their core products while leveraging new technologies and capabilities. By offering a more personalized customer experience, these products will boost sales and build customer loyalty.

Although embedded finance has been around for a while, it is gaining momentum rapidly. By 2023, it will be among the top three most important fintech innovations. Several banks are already working to integrate their services into third-party platforms.

However, a number of challenges still stand in the way of achieving a high level of integration. Integrations are costly and complex to develop and maintain.

As a result, companies will have to get the most value for their customers while staying lean and profitable. Many of the best ideas will come from companies that have cross-sector collaboration.

B2B payments

The B2B payments industry is in the midst of an exciting era of innovation and growth. Fintech companies are revolutionizing how people invest and transact. They have created new ways for banks to work with consumers and businesses. These innovations include mobile wallets, mobile and online payment solutions, and secure identity verification technologies.

Businesses around the world are making the shift to a cashless economy, and this trend is accelerating. In the U.S. alone, B2B payments are expected to grow at a 10.8% CAGR through 2023, according to research firm Straits Research.

Payments innovation includes the emergence of digital wallets and digital checks. These technologies can be used to speed up payments and streamline operations. Digital checks, for example, allow for rapid payments to suppliers.

Another key innovation in the payments space is real-time payment systems. This means that a company can route payments to a single point of contact, reducing the number of failed transactions. As well as saving time, these technologies can also improve cost savings.

As more companies move to real-time systems, the need for payment integration will become increasingly important. By bundling payments with a product or service, companies are able to realise process efficiencies, while ensuring that they are aligned with their overall business areas.

The need for sustainable measures is also growing. Companies need to consider their own processes and make changes to ensure that they are environmentally responsible. To do this, they can use payment providers to help them make green buying decisions.

Embedded payments will continue to be a hot topic in the payments industry. Business software providers are beginning to integrate payment solutions into their systems. When integrated, these solutions will be easier to manage and will remove unnecessary processes from the back-office.

Real-time fraud detection is another key innovation in the payments space. By confirming suspicious transactions in real-time, companies can increase confidence in e-commerce purchases. Using AI to identify and report suspicious transactions can also increase security.

Despite these innovations, there are still a number of challenges for companies in the industry. For example, manual payment methods can be inefficient and expose companies to security risks. Similarly, executives at many companies do not have the resources to make sweeping changes to their practices.

Metaverse

The Metaverse is a new virtual reality utopia that is slowly but surely evolving. It is a combination of technology, including augmented and virtual reality, and it offers a bridge between the digital and physical worlds.

The technologies enabling the Metaverse have a lot of promise. In fact, a recent report by Citibank predicts that the total market could be worth $13 trillion by 2030.

This is a huge opportunity for financial firms. They can enter the Metaverse to improve customer experience. Some examples include virtual trading floors and branches. These will allow consumers to manage their finances and access insurance schemes.

Brands have also begun exploring the marketing potential of the Metaverse. Restaurant operators can virtually try out different restaurant configurations and retail stores can sell virtual replicas of physical products.

Manufacturers can also use Metaverse data to improve their supply chains. Retailers will be able to use this information to provide better products and services to consumers.

Banks will have a strong opportunity to lead the Metaverse. They can launch virtual investment spaces and virtual trading floors to engage customers and attract Gen Z investors.

Companies should prioritize learning about Metaverses and preparing for them. They must also consider security and privacy implications. Managing transactions in the metaverse will be essential to making it as realistic as the real world.

As the technology develops, developers will be able to render virtual worlds more effectively. AI and machine learning will increase the accuracy of user experiences. However, the number of users that will be able to interact with the Metaverse is uncertain.

While the impact of the Metaverse on the economy is enormous, it will not be instant. It will take years to see a true impact. Those companies that are brave enough to make the transition will reap the rewards.

Fintech solutions are already changing the way people make transactions in the real world. Many consumers are now relying on fintech solutions for their everyday financial needs. Therefore, it is essential to prepare for the Metaverse before it takes off.

AI

Artificial intelligence is one of the most important factors driving the fintech innovation market. The global AI industry is expected to reach a market size of $27 billion by 2026. In the fintech space, artificial intelligence is being used to enhance customer experience, boost security and improve loan management.

Many banks are now using AI to tackle fraud. Fraud is a major problem in the finance industry, with an estimated 56 billion dollars lost in 2020. Banks must ramp up their fraud detection efforts to prevent fraud. Thankfully, artificial intelligence has a lot to offer.

Machine learning and facial recognition are two examples of AI technologies that help banks detect suspicious activities. They can also provide personalized recommendations. A machine learning model will be able to process large data sets, identifying hidden patterns and detecting suspicious activity.

Other fintech applications include robo-advisors. These AI-powered chatbots help banking institutions grow their customer base. They can handle typical user issues, such as finding out about duplicate charges, bill reminders and even balance search.

FinTech companies are responding to consumer demand for a more personalized experience. This includes offering apps that enable customers to monitor their budget and make financial plans. Using an AI-powered approach, Bank of America’s app offers a customized approach to each customer.

Artificial intelligence is not only beneficial for the financial industry, but for all industries. It provides valuable insights and helps banks overcome challenges. By using AI, banks are able to reduce data entry and automate many clerical tasks.

In addition to machine learning, many banks are turning to AI for fraud analysis. A well-trained algorithm is as effective as a human analyst, and can spot and respond to fraudulent activity before it occurs.

AI is also being applied to back-office operations, such as credit scoring. A machine learning model can organize large data sets and resolve disputes.

Lastly, banks are shifting towards a more self-healing infrastructure. This requires automation and cultural change on both sides of the bank. For example, banks have begun automating IT tickets when their mobile banking app goes down.

Protecting Your Blockchain and Fintech Patents

Many innovators working in the fintech and blockchain sectors believe their inventions are not eligible to be protected by patents or other IP protection. This is a false assumption.

It is possible to protect algorithm-driven technical innovation and allow innovators freedom of operation as they build businesses on it. In fact, we at PatentPC have done it numerous times. (Check our testimonials).

Key point to note when patenting a Fintech and Blockchain innovation, is that you should be focused on solving the challenges related to Section 101 subject matter eligibility and optimizing intellectual property used to increase shareholder value.

Since most fintech and blockchain innovation relate to software patents, the best way to approach would be from the angle of patenting a software innovation. Check out the latest blockchain and fintech patent examples down below!

defensive and offensive patenting considerations for fintech or blockchain companies

Defensive patenting is the process of obtaining patents on inventions to prevent others from patenting them and potentially suing for infringement. For fintech or blockchain companies, this may include patenting innovative financial products, services, or technologies that they have developed.

Offensive patenting, on the other hand, is the process of obtaining patents with the intention of using them to assert against others. For fintech or blockchain companies, this may include patenting technology or methodologies that may be used by their competitors in the space.

It’s important for fintech and blockchain companies to consider both defensive and offensive patenting strategies, as patents can provide a significant competitive advantage and can also serve as a source of revenue through licensing or litigation.

However, it’s important to keep in mind that patenting can be a costly and time-consuming process, and there is no guarantee that a patent will ultimately be granted. And also patenting may not be the best strategy for open-source projects as it goes against the nature of open-source.

patenting considerations for blockchain, crypto, and fintech

Patenting considerations for blockchain, crypto, and fintech companies can be complex and multifaceted. Here are a few important things to keep in mind:

  1. Timing: Blockchain, crypto, and fintech technologies are rapidly evolving, so it’s important to file for patents as early as possible to ensure that the company has the strongest possible patent portfolio.
  2. Jurisdiction: The patentability of blockchain, crypto, and fintech technologies can vary widely depending on the country in which the patent is filed. It is important to understand the patent laws in different jurisdictions and to file patents in countries where the technology is most likely to be protected.
  3. Open-source nature: Blockchain and crypto technologies are open-source, and thus it is important to understand the implications of open-sourcing a technology before filing for a patent.
  4. Patentability: It’s important to ensure that the technology being patented is novel and non-obvious, and that it’s not simply an abstract idea or mathematical algorithm.
  5. Costs: Patents can be expensive to obtain and maintain, so it’s important for companies to carefully consider the costs and benefits of patenting their technology.
  6. Licensing and litigation: Once a patent is granted, companies have the option to license the technology to others or to assert their patent rights in court. It’s important for companies to consider these options and to have a plan in place for how to leverage their patents.
  7. Clear and concise description: The patent application needs to be described in a clear and concise manner, to make it easy for the patent office to understand the invention and its novelty.

Yet another issue to consider is Alice’s impact on blockchain/fintech as patentable subject-matter. Alice (Alice Corporation v. CLS Bank International) is a 2014 Supreme Court case that established a two-part test for determining whether a software-related invention is eligible for a patent under 35 U.S.C. § 101. The test is used to determine whether a software-related invention is a patent-eligible “abstract idea” or a “significantly more” invention.

When considering patents for blockchain or fintech technology, it’s important to keep in mind the Alice test and how it may impact the patentability of the invention. Here are a few things to consider:

  1. Is the invention an abstract idea? Under Alice, an invention that is simply an abstract idea, such as a method of organizing human activity or a fundamental economic practice, is not eligible for a patent.
  2. Is the invention “significantly more” than an abstract idea? If the invention is more than an abstract idea, it is considered patent-eligible. For example, a specific application of blockchain technology that solves a technical problem in a new and non-obvious way may be considered “significantly more” than an abstract idea.
  3. Is the invention tied to a specific practical application? The court in Alice stated that an abstract idea is not transformed into a patent-eligible invention simply by being implemented on a computer or through the use of technology. Therefore, it is important to describe how the invention is tied to a specific practical application.
  4. Is the invention tied to a specific hardware or software? The court in Alice stated that an abstract idea is not transformed into a patent-eligible invention simply by being tied to a specific hardware or software. Therefore, it is important to describe how the invention is tied to a specific hardware or software.

Overall, it is important to consult with a patent attorney or agent who has experience in the blockchain and fintech space and understands the Alice test, to help navigate these complex considerations and to ensure that the company’s patent application(s) are as strong as possible.

Overall, it is important to consult with a patent attorney or agent who has experience in the blockchain, crypto, and fintech space to help navigate these complex considerations and to ensure that the company’s patent portfolio is as strong as possible.