Lately, our Companies We Follow series has focused on some big names in innovation from the financial sector. Both the Bank of America and JPMorgan Chase are heavily involved in developing technologies to serve the personal finance needs of individual customers as well as many tools that are designed to aid organizations large and small. Today, we thought that we would spend some time scoping out a wider breadth of invention from entities outside of the two banking giants which typically earn most of our focus.
In terms of innovation, banking services have been impacted by the incredible spread of computing and Internet technologies over the last twenty years. Indeed, patent portfolios that deal with point-of-sale biometrics, secure identity authentication for electronic funds transfer, automated teller machines and transaction card systems that prevent unauthorized use have all recently been offered by ICAP patent brokerage. But even with this innovation and activity some industry pundits have surmised that the Internet age has yet to truly impact the financial services sector. If these predictions are true we could see truly disruptive innovations that will continue to impact the marketplace in positive ways, perhaps even approaching the level of disruption that smartphones caused when upending both personal computing and cellular communications.
Digital currencies like Bitcoin, social media-based identification systems and enhanced application programming interfaces for online banking services have been developed and are slowly establishing larger user bases. Some banks and financial services corporations have varying opinions on what constitutes innovation in their fields, but a focus on developing stronger relationships with consumers is a common thread throughout.
Most of the technologies we explore below are directed at improvements to ATMs, including ATM platforms on mobile devices, enhanced commercial banking services available through ATMs and increased security features for discouraging theft or fraud. Other intriguing financial innovations include smarter credit cards which can conduct transactions using wireless communications, an investment system for online gambling services and a classroom kit for teaching financial literacy to students. While some of these innovations no doubt would qualify as software patents, they seem tied to tangible elements with a physical presence in a way different from those patents recently profiled for Bank of America and JPMorgan Chase.
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Financial Innovations in Patent Applications: From Smarter ATMs to Bluetooth-Enabled Credit Cards
Intriguing developments in the world of financial services are being developed all over the world, from large American financial corporations to groups working in Brazil, India or South Korea. One area where we noticed a lot of activity in research and development was in automated teller machines (ATMs) and an increase in the type of services they offer. An ATM which is designed to offer professional banking services that go well beyond the typical deposit or withdrawal machine are discussed within U.S. Patent Application No. 20140337213, titled Automated Teller Machine Enabling Video Consultation with Consultant During Financial Transactions and Transaction Method Using the Same. This machine is designed to offer bank customers a tool for obtaining necessary financial information or consultation about financial products if they are too busy to go to a bank. The patent application, filed by Nautilus Hyosung Inc. of Seoul, South Korea, claims an ATM that includes a first communication unit to process financial requests and a second communication unit which processes a request for consulting services. A consulting service input is utilized to send a request through the second communication unit when such a request is made.
Another innovation for greater interactivity in ATMs comes from the Wells Fargo Bank of San Francisco, CA, and is described by U.S. Patent Application No. 20140315159, filed under the title Banking Services Experience Center. The patent application would protect a system for creating an interactive banking experience which is comprised of a number of banking workflow scenarios; the system also incorporates an environmental control system for creating ambient conditions for the scenarios and a detection system which can detect gestures and voice commands from users. Developed by a team of four inventors from India, this system is intended to help customers who would like an explanation of certain banking processes that can be carried out at ATMs, in online banking environments or elsewhere.
An ATM configured to offer a variety of banking services to accommodate a wide range of customers is the focus of U.S. Patent Application No. 20140339302, entitled Automated Banking Machine That is Operable to Automatically Detect and Store Service Activities. The automated banking machine that would be protected utilizes a transaction function device and implements a method to automatically cause a financial transfer responsive to financial account data read by a data reader. This technology could support the operation of ATMs that can process commercial transactions involving deposit bags, rolled coin dispensing or even touchscreen interactions; one of the achievements of this invention is that various components of the ATM are easier to maintain or replace. This patent application was filed by Diebold Self Service Systems of North Canton, OH.
Security in ATMs is another area of recent focus for the R&D activities of some financial corporations. Methods for the prevention of criminal theft at ATMs have been incorporated into the innovation outlined by U.S. Patent Application No. 20140351124, filed under the title Self-Service Banking System. Filed by OKI Brasil Indústria e Comércio de Produtos e Technologia en Automação S.A., the patent application would protect a self-storage banking system with one or more sums storages which are configured to be placed away from a means for depositing or withdrawing sums, the two connected by a means of transporting sums. By setting the storage component at a distance from the deposit or withdrawal mechanisms, the invention hopes to make it harder to steal money from an ATM by using explosive materials or similar methods.
Intriguing technological developments which focus on enhanced credit card services were found in a couple of patent applications which piqued our interests. Credit cards that can transmit large amounts of data when used in a transaction are disclosed by U.S. Patent Application No. 20140317715, which is titled Bluetooth Enabled Credit Card With a Large Data Storage Volume. This innovation is assigned to a group of three inventors: Finis Conner of La Quinta, CA; An Van Li of Austin, TX; and Anil Nigam of Saratoga, CA. This patent application would protect a smart card that has a mass storage for storing private data and a processor for receiving a request to access a user’s private data. In response to the request, the processor also processes biometric data of a user to authenticate the user before providing private data. This technology provides a secure method for completing purchases through Bluetooth connections which can process data over distances of 30 meters with a data storage volume of greater than 10 megabytes. Customer incentive programs have been another area of innovation that we find is well-represented among the patent applications filed by banks and financial corporations.
An improved method for rewarding credit account holders through points systems is featured in U.S. Patent Application No. 20140344044, titled System and Method for Transacting Purchases With a Cash Vendor Using Points and a Virtual Credit Card. The patent application would protect a computerized method for awarding points to a participant of a program. The method also permits a participant to transact a purchase by using points which have been awarded in a cash vendor system. This invention provides better tools for tracking purchases which have been made using points given through a customer incentive program, especially when program managers use a single large-balance credit card to pay for services and items purchased by program participants with points. This patent application was filed by Maritz Holdings Inc. of Fenton, MO.
Financial innovations have been an interesting area of intellectual property development to explore in the wake of the U.S. Supreme Court’s decision in Alice Corp. v. CLS Bank International. Even though that ruling seemingly eliminated computer programs implementing well-known business services as patent-eligible material, we see patent applications filed and patents issued by the USPTO which are directed at computer programs and computer-implemented methods. One of these is U.S. Patent Application No. 20140344185, which is titled System and Method for Development of Financial Plans. Filed by InStream Solution, LLC, of McLean, VA, it would protect a computer program product designed to provide an integrated financial advisor platform which automatically performs a comprehensive review of a plurality of financial advisor clients and generating updated financial plans based on that review. The computer program product offers a variety of features for financial planning, including peer planning, a 401(k) component, financial plan tracking and a financial advisor marketplace.
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Issued Patents of Note: More ATMs, Investing Casino Winnings and Classroom Games for Financial Literacy
In our survey of patents recently issued in the world of financial services and technology, we again saw a preponderance of innovation in the field of ATMs, both for purposes of security and to support enhanced services for banking consumers. Methods of providing a more personalized electronic banking experience through ATMs and other remote devices is disclosed and protected by U.S. Patent No. 8862508, entitled System and Method for Unifying E-Banking Touch Points and Providing Personalized Financial Services. Issued to co-inventors Thomas Maiorino of Mt. Laurel, NJ, and Daniel Taylor of Downington, PA, this patent protects a method for constructing a unified electronic banking environment which provides at least one common multi-channel coupled to a plurality of e-banking touch points, which can include ATMs, self service coin counters or an online-accessible banking website. This system is intended to help financial institutions unify their e-banking functions for the central regulation of those services.
A system to dissuade ATM users from engaging in fraudulent financial activity is at the center of U.S. Patent No. 8893959, which is titled Check Cashing Banking System Controlled Responsive to Data Bearing Records. This is another ATM innovation that comes from Diebold Incorporated of North Canton, OH. This patent protects an automated banking machine apparatus that causes financial transfers in response to data read by a user data reader and a cash dispenser which dispenses currency notes to authorized users of a financial account. This system of checking financial transactions conducted through an ATM enables financial institutions to identify the source of deposited counterfeit funds or those who may be attempting to launder money through an ATM. The authentication of ATM services at non-ATM devices is an innovation supported by the technology described within U.S. Patent No. 8864022, entitled Authentication Strategies for Remote Financial Institution Services. This Bank of America Corporation invention is comprised of a portable mobile communication apparatus configured to place and receive phone calls, capture images of a user and an authentication card and using that data to authorize a request to access a financial institution service. This innovation is designed to enable bank customers to access ATM services through a mobile computing device with the use of an ATM or credit card.
A couple of patents which we noticed protect some intriguing investment products that can benefit individual bank account holders in a variety of ways. The PNC Financial Services Group of Pittsburgh, PA, has protected a technology designed to bridge the gap between investment products offered by an institution and customer knowledge of those products. U.S. Patent No. 8791949, issued under the title Investment Management Marketing Tool, protects a method for marketing investment services that involves detecting the position of a person relative to a viewing screen, determining whether the viewer is a customer of a financial institution and displaying investment-related service information to the customer. The system is configured to better communicate information about investment products to bank patrons through display screens in highly trafficked areas.
Casino games make for a pretty poor investment strategy, but we were intrigued to find a technology aiming to introduce investment functions into online gambling services, protected within U.S. Patent No. 8784712, which is titled Online Gambling and Investing Methods and Systems Using Behavioral Economics. Issued to Jeffrey Racho of Austin, TX, this patent protects a method for electronic gambling and investment where a player plays an electronic game of chance and is presented with an option for transferring winnings into an investment account. This system incorporates principles of behavioral economic theory developed by Amos Tversky, Daniel Kahneman and Richard Thaler during the late 20th century.
Finally, we wanted to close our look into financial patents with another invention which is designed to increase people’s knowledge of financial topics. A total immersion educational program in these topics is the focus of U.S. Patent No. 8882509, entitled Method and Kit for Teaching Financial Literacy and Civic Engagement. The patent, assigned to Susan Nunamaker of Seneca, SC, protects a kit comprised of student wallets, a set of class money, a motivational behavior chart system, a classroom banking system, a stock and bonds game and a system reflecting adult financial obligations. This invention is designed to provide materials and methods to teachers for engaging students in financial literacy and civic engagement topics which are aligned with the National Strategy for Financial Literacy, developed by the federal government’s Financial Literacy and Education Commission.
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