Fintech Patents

Fintech encompasses all manner of developed software and apps used in the finance sector, as well as the infrastructure used to run these programs. This includes banking, insurance, point-of-sale, security and transaction technologies, amongst others. In truth, the boundaries of what may/may not be referred to as Fintech are hard to define and legislation of what is considered patentable is similarly in flux. Thus, Fintech patent applications should be carefully considered and drafted based on a clear understanding of current software patenting law in the jurisdictions of relevance.

Probably the most famous example of a Fintech patent is the 1-Click purchase technology developed by Amazon. Whilst conceptually, the technology is not complex, it bypasses several processes in purchasing items online, making purchasing easier for Amazon’s customers. Another example of a Fintech application is the use of biometrics for mobile payment apps, as in the case of Apple’s Touch ID to make purchases using Apple’s mobile wallet (Apple Wallet), application store (App Store), and multimedia store (Itunes).

Benefits and challenges of patenting financial technology

In the exponentially growing Fintech market, a Fintech patent is important to maximise the commercial value and establish protection for investment in your innovation. In addition, a Fintech patent can enable the patent owner to license the application to other parties. Even banks and traditional financial institutions have become increasingly welcoming of Fintech and are filing patent applications for their own Fintech infrastructure. The main challenge in filing a Fintech patent is in the framing of the invention. Subject matter objections can arise where a patent application fails to show that the innovation is more than an abstract idea.

Another difficulty in filing a Fintech patent is the 18-month shadow, what do we mean? Patent information is only disclosed publicly by the patent office at 18 months after the priority date. Therefore, it is possible and especially in rapidly developing markets like Fintech, that an application with similar or identical concept may have been filed prior and the applicant would not know about it until it is published 18 months after it is filed.

Examples of granted fintech patent applications

Mobile banking apps
AU Patent # 2001241977
Multifunctional mobile banking system

Euronet Worldwide, Inc

Online payment portals
US Patent # 2013205573 etc.
Payment application framework

Paypal, Inc

Security and identity verification
AU Patent # US8782775B2
Embedded authentication systems in an electronic device

Apple, Inc

Loan management applications
AU Patent # 2009202196
Loan portfolio management and automatic loan repayment method and system

Advanced Merchant Payments, Ltd

Block chain and cryptocurrency
AU Patent # 2018100999
Integration of Cryptocurrency Splitting Technology, Highly Scalable Blockchain Network and Mirror Advertising Technology for transparency of Business Operations and Taxation

Cherkas, Ruslan MR; Pavlenko, Ivan MR; Sashin, Sergey MR; Tcherkas, Dmitri DR; Vasilenko, Alex MR; Williams, Elise MRS

Insurance applications
AU Patent # 2011101529
A Method of Providing Insurance

IUG Asset Management Limited

Loan calculators, personal financing apps
AU Patent # 2018101796
An Online Home Loan Comparison Calculator with added functionality, allowing the user to ascertain the net effect of adding the cost of a Solar PV System to the original home loan amount. The Solar Home Loan Calculator allows the user to compare 2 different loan amounts with 2 varying or equal interest rates, showing a net loss or gain in terms of loan payments. The calculator also allows the user to input the electricity savings generated by the Solar PV System in dollar terms, as extra loan repayments, illustrating the reduction in overall home loan interest payable, loan term & LVR

Xenara Financial Pty Ltd

The Baxter IP approach in filing fintech patents

Baxter IP has been continuously awarded in the field of software patents with several industry awards – we are highly experienced in this field. Our patent attorneys provide careful counsel, listening carefully to your ideas and providing recommendations, not just options. In drafting fintech patent applications, your patent attorney will emphasise the process of delivering the outcomes of the application in the real-world context so as to minimise the possibility that the application will be considered by the examiner as abstract.

Depending on specific circumstances, however, other strategies may be more appropriate. It is important to discuss your particular situation with a qualified attorney to determine the best strategy in each case.

Examples of fintech patent applications filed through Baxter IP

  1. AU Patent #2016309943 – A computer implemented method for processing a financial transaction and a system therefor. Identitii Pty Ltd
  2. AU Patent #2014904037 – Electronic payment system & method. Spectrum Message Services Pty Ltd
  3. AU Patent #2017100687 – A computer system and a computer implemented method for management of a mortgage obtained on a property. Mifsud, Karl Norman
  4. AU Patent #2018101720 – A computer implemented method for preventing unauthorized access to a secured network. Mogrelia, Mehrzaad

Our fintech industry experts

What are the key regions for fintech patents?

What are the key regions for fintech patents?AustraliaChinaJapanKoreaCanadaEuropeUSA

Some of our fintech clients include:

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