relecura ip intelligence report · relecura ip intelligence report. fintech sector –current...

Relecura Inc.

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Relecura IP Intelligence Report

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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.



http://www.berkerynoyes.com/publication/pr/2014Full/fintech.aspx

https://p.relecura.com/Advent+Software+Inc

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.




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.




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.




20-10-2015

FinTech patents – Financial Categories




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

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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




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.




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.

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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




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.



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

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FinTech patents – Technology vs. Financial Categories(Key patent holders)



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

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logy

Cat

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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.




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.




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.




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


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


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.




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




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


IBM 747

SONY 594

TOSHIBA 586

LG 271

SAMSUNG 258

PANASONIC 257

GE 246

SIEMENS 239

SUMITOMO 170

MITSUBISHI 86

PHILIPS 64

Electronics manufacturing


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


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




FinTech patent holders – Other sector companies II

20-10-2015

IP commercialization firms


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


FUJITSU 596

MICROSOFT 476

GOOGLE 289

HP 274

APPLE 142

Gaming


IGT 114

SANKYO 75

UNIVERSAL ENTERTAINMENT

47

CANTOR INDEX LLC 37

Retailers


TARGET 70

WALMART 41

E-commerce


EBAY 758

AMAZON 162

ALIBABA 143

PITNEY BOWES 138

RAKUTEN 88

SK PLANET CO LTD 83

Others


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




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




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.




https://p.relecura.com/Pure+Play+FinTech+Patents

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.




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.




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.




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.




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.




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.




https://d.relecura.com/b610ba83-c732-4985-b5f8-772257cc6f2f

https://d.relecura.com/e8789334-a8b7-42a2-873a-ebddf165cddc

https://d.relecura.com/d9bbc710-bc18-4f31-96ac-4e7bd936eb9f

https://d.relecura.com/545272a8-f3d5-4e37-83b1-d115c70531a4

https://d.relecura.com/50602602-012e-4de7-abe5-1172b50788e0

https://d.relecura.com/bd83f8de-43ca-41ce-bbb5-238d8cc673ba

https://d.relecura.com/aded84da-561d-43ef-8799-bfb57d148b86

https://d.relecura.com/d647219d-5bb5-4af2-b15c-c3b77aa7f2ec

https://d.relecura.com/1188d560-35aa-4ba5-ae2b-f7a66393a7f8

https://d.relecura.com/6f79bbff-4af7-405d-bcf4-3891082bd48b

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.




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




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




FinTech – Top patent buyers




FinTech – Top patent sellers




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




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



http://goo.gl/RFemXV

http://goo.gl/gZyID9

https://goo.gl/uqMt3E

http://goo.gl/U2GDlh

http://goo.gl/ZsUO6b

http://goo.gl/ZWSByb

http://goo.gl/FWcLEK

https://goo.gl/uqMt3E

https://goo.gl/lbIaHs

http://goo.gl/aHLy6h

http://goo.gl/aZ0EPF

http://goo.gl/IMLxPz

http://goo.gl/vxnvAF

http://reubenlevy.me/

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.




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 40/00 Data processing systems for finance, insurance, tax strategies

Payment

CPC/IPC Codes Description


Banking


G06Q 40/02 Banking

Capital Market & Wealth Management


G06Q 40/06 Investment

Insurance


G06Q 40/08 Insurance

Lending


G06Q 20/24 Credit schemes

CPC Code Description

G06Q 40/025 Credit processing or loan processing,




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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