Posts Tagged: "banks"

Financial Institutions Face Fork in Patent Road

Large banks have a reputation for being slow to change. However, in the past decade, the financial services industry has seen the wholesale adoption and implementation of new technology as firms realize that consumers and businesses are increasingly demanding a strong digital experience. In 2007, Bank of America was one of the first financial institutions to offer a mobile banking application and since then, the rest of the industry has followed suit. Now, consumers could not go without their banking apps ­– imagine going to the bank to deposit a check.

Is being called a ‘patent troll’ defamatory? NH inventor files suit against banking industry to find out

In a New Hampshire State Superior Court, this so-called ‘patent troll’ has decided to fight back. Automated Transactions and Dave Barcelou have filed a defamation complaint against the crème de la crème of those deemed “too big to fail” and who many might consider to be too big to defeat… The minute Barcelou was able to enforce his patented technologies in court, winning a sizable settlement from the biggest bank in his hometown of Buffalo, NY, a veritable “Who’s Who” of the financial services leaders joined forces to destroy both Barcelou and his company economically. Besides encouraging one another to ignore Automated Transaction’s demand letters, false and misleading statements started to appear in prominent business publications, which went so far as to say the company had purchased its patents, or alternatively, that the patents were invalid. Over time a unified battle cry arose from the ‘poor little community banks’ he allegedly targeted; “He’s nothing but a patent troll.”

What’s the big deal: Big data in the financial services sector

Customers, myself included, are used to the customer-centric technologies experienced in other ‘digitized’ sectors like publishing or music – these have had to adapt to the digital revolution early. Customers now want that experience replicated in the FS sector. Banks, for example, are beginning to take notice, investing significant amounts of money in IT upgrades: Australia’s Commonwealth Bank invested over AUD $1.1 billion in an end-to-end IT transformation project to replace its aging core banking system and Barclays has been promoting customer-centric technologies like the mobile payments app PingIt for many years.

BoA innovations cover security for financial transactions, wearable payment devices, cryptocurrency

Many of the patents we noticed in our recent survey of BofA technologies are related to enhanced security methods for financial transactions, such as the innovation protected by U.S. Patent No. 9218596, entitled Method and Apparatus for Providing Real Time Mutable Credit Card Information. It discloses a smartcard apparatus having a microprocessor chip, a button, a dynamic transaction authorization number and a Bluetooth low energy device (BLE) that works to transmit an instruction to a smartphone for a request for a dynamic transaction authorization number when the button is depressed and receive the number from the smartphone; the smartcard further has a battery and a dynamic magnetic strip comprising a digital representation of the dynamic authorization number. This technology is designed to enhance security measures in smartcards having magnetic strips without requiring a banking institution to issue new cards. Enhanced security for banking transactions taking place on cloud infrastructures is featured within U.S. Patent No. 9184918, entitled Trusted Hardware for Attesting to Authenticity in a Cloud Environment. I

The Top 10 Patents Issued in 2015

2015 was a truly remarkable year for innovation and we saw major trends in self-driving cars, wearable technologies, digital wallets and much more. I hope you will enjoy this top 10 listing, which includes innovations for providing water in arid regions, wireless charging systems for electronic devices and even the collection and retransmission of sunlight. Of course, as with all of these types of lists, the criteria used for inclusion on this list is subjective, based on my own personal preferences. Please feel free to let us know if you saw something particularly noteworthy in 2015.

Bank of America patents mobile banking programs and video ATM terminals

Mobile devices were the subject of a pair of recently issued Bank of America patents recently. It was at least a little intriguing, however, that the invention relates more to personal security than the protection of financial accounts. U.S. Patent No. 8922657, entitled Real-Time Video Image Analysis for Providing Security, claims a method for providing security to a user by receiving an image of an area frequented by a user, building a directory of non-human object and individual data within that area, recognizing variations between the data directory and a real-time video stream of the area and presenting selectable indicators of recommended security actions associated with the variations to a user via a mobile device. The innovation is intended to provide smartphone owners and other mobile device users with an augmented reality service for identifying unwanted home intrusions and offer them options for contacting authorities.

Banks struggle to keep up as cybersecurity risks increase

Regulations will likely start rolling out in the coming year starting at the state level. In May of last year, for example, the New York State Department of Financial Services released a report which said that the agency would add cybersecurity measures to the list of items that it investigates when evaluating a bank’s overall safety and soundness. New York, and New York City in particular, is home to a huge banking industry that represents some of our nation’s largest financial institutions, including American Express, JPMorgan Chase, Goldman Sachs and Merrill Lynch. According to remarks made by NYS DFS Superintendent Benjamin Lawsky in late February, state regulations could involve the use of multi-layer authentication systems for firms regulated by the DFS.

I Thought Banks Didn’t Like Financial Software Patents?

The big banks have backed Schumer for years, which makes sense since he is the senior Senator from the States of New York, which is where all the bankers are located (i.e., on Wall Street). But given all the vitriol aimed at software patents, particularly those in the financial services sector, there is a real irony that big banks are able to get software patents that explicitly cover computer implemented methods in the wake of Alice v. CLS Bank when so many others aren’t. So much of this anti-software patent hysteria was started by the big banks but they seem unaffected. That is an unfortunate theme in America. The big banks on Wall Street destroyed the economy with reckless disregard and yet not a single person went to jail and big bonuses continued to be paid to the very bankers and executives responsible for the economic meltdown that lead to the Great Recession.

JPMorgan Chase Software Patent Portfolio Grows Larger

What really caught our attention were the patent claims JPMorgan Chase recently obtained. Many of the claims cover computer implemented processes, while many are clearly drawn to software innovations even if they don’t specifically define computer implemented processes in the preamble of the claims. It would seem that like Bank of America, JPMorgan Chase is not suffering through Alice rejections that so many others experience.

Big Banks Get Software Patents Despite Alice

There are plenty of patents being issued to these giants of the banking industry which protect methods of processing transactions or performing other services through computer technologies. This year’s Supreme Court decision in Alice Corp. v. CLS Bank International has drawn a lot of attention to software patents, and particularly the type of financial service software patents that were protected by the Alice Corporation patent. The Supreme Court specifically cited that fact that the software was related to financial transactions as at least some reason to rule the patent claims invalid. Yet, there are a number of patents we noticed which were recently issued to these financial corporations involving software technologies for financial services.

Innovation Focus: Financial Sector Giants Like Patents Too

Rather than profile a single company we looked at patents and patent applications from the likes of Bank of America, American Express, Capital One and more. Our recent review of the sector continues to show us some astonishing inventions. Today’s featured patent application comes from Capital One and protects an attachment to mobile devices which establishes a network for handing digital transactions. This attachment would enable a user’s device to be retrofitted so that it can be easily operated as a digital wallet. Methods of tracking online payments through mobile devices, as well as a system for quickly processing loans for online auto sales, are discussed in other patent applications we discuss.

Major Banks Innovating to Increase Consumer Security

Today, we’ve profiled an assortment of patent applications and issued patents coming out of the U.S. Patent and Trademark Office that are assigned to Citigroup Technology of New York, NY; The Bank of America Corporation of Charlotte, NC; and JPMorgan Chase Bank, also of New York, NY. We’ve checked out a few inventions that show the desire of banking corporations to stem the recent tide of major identity theft scandals. Our featured application today takes a look at a new design for a magnetic stripe card reader that would have impeded the progress of criminals who recently stole personal financial information from millions of Target customers. Other patent applications we noticed include a system for identifying phishing websites that steal customer information across the World Wide Web, as well as a personal budgeting manager for financial accounts. These three banking companies have also been receiving patents from the USPTO at a fair clip in recent days, although Bank of America and JPMorgan Chase are paced well ahead of Citigroup in this regard. We discuss a couple of new banking inventions that aim to take advantage of mobile networks and devices, including one patent protecting a system of providing offers to individuals from nearby businesses. Other patents include a system of collecting unused coinage for redistribution among banks and systems for funding an account collectively among many contributors.