BofA Patents Increase Nearly 70% in 5 Years

Rhea-AI Summary

Bank of America achieves record patent portfolio growth with nearly 6,600 patents, marking a 13% year-over-year increase and a 70% surge since 2019. The company now ranks 64th on the Top 300 list of patent owners. With a focus on client-centric innovation, Bank of America invests $12 billion annually in technology, allocating $3.8 billion to new initiatives in 2024. The company boasts over 7,300 inventors globally, with 26% being women, and emphasizes technology categories like AI, machine learning, and augmented reality to enhance client experiences.

Financial Analyst

Bank of America's announcement of a significant increase in its patent portfolio indicates a strategic focus on innovation and technology development, which is critical in the financial services industry. The 13% year-over-year growth and the 70% increase since 2019 in patents suggest a sustained investment in R&D, which could lead to the development of new products and services that enhance customer experience and operational efficiency. The $3.8 billion allocation to new technology initiatives for 2024, part of a broader $12 billion technology budget, reflects a substantial financial commitment that may result in long-term cost savings through improved processes and a stronger competitive edge in digital banking.

From an investor's perspective, this focus on technology, particularly in AI and machine learning, positions Bank of America favorably against competitors as the industry shifts towards more automated and intelligent financial solutions. The high citation count of their patents by other companies also underscores their influence and the potential for licensing revenue. However, investors should monitor how effectively the bank converts these patents into tangible products that contribute to revenue growth, while also considering the amortization costs of these investments on the bank's financial statements.

Market Research Analyst

The financial services sector is increasingly driven by technological innovation and Bank of America's aggressive patent acquisition highlights its intent to be at the forefront of this trend. The bank's rise on the Intellectual Property Owners Association's Top 300 list is indicative of its growing influence in the technology space. With 57 million clients using its digital capabilities, the bank's investments seem to be translating into increased digital engagement, a critical metric in today's market where customer convenience and security are paramount.

Moreover, the diversity of the bank's inventors and the inclusion of new technology categories like augmented and virtual reality suggest a broadening of their innovation scope, which could open up new market opportunities and customer segments. The bank's ability to retain and attract clients through its high-tech offerings may increase customer loyalty and reduce churn, which is vital in a competitive banking landscape.

Technology Innovation Expert

Bank of America's substantial patent growth, especially in AI and machine learning, underlines the bank's commitment to integrating cutting-edge technologies into its services. The mention of new patents in augmented and virtual reality points towards an exploration of immersive technologies, potentially revolutionizing customer interactions and service offerings in the financial industry.

However, the practical application and user adoption of such technologies remain crucial for achieving a return on investment. The bank's ability to convert these innovations into user-friendly applications will be key to realizing the business value of its patent portfolio. It's also important to note that while patents are indicative of innovation, the true market differentiator will be the deployment of these technologies in a way that improves customer satisfaction and drives business growth.

• Committed to client-focused innovation, Bank of America now holds nearly 6,600 patents.
• Most U.S. patents of any financial services company in the country
• More than 7,300 inventors around the world
• Nearly 1 out of 5 patents granted last year related to AI and machine learning innovations.

CHARLOTTE, N.C., March 6, 2024 /PRNewswire/ -- Bank of America today announced a record year for its patent portfolio, which has grown to nearly 6,600 granted patents and pending patent applications – a year-over-year increase of 13%, and an increase of nearly 70% since 2019. A record 644 patents were granted to the company last year, an increase of 54% compared to the total number of patents granted in 2019. As a result, the company rose from 75^th to now 64^th on the Intellectual Property Owners Association's Top 300 list of patent owners.

"Technology helps us deliver world-class capabilities to clients, enabling them to manage their finances efficiently and securely and to interact with us when, where and how they want," shared Aditya Bhasin, Chief Technology and Information Officer for Bank of America. "We innovate to meet and anticipate our clients' needs. As our pace of innovation accelerates, we're continually listening to clients and building solutions to improve and simplify their experiences."

Technology categories in which new patents were granted to Bank of America last year include information security, artificial intelligence (AI), machine learning, online and mobile banking, payments, data analytics and a new category: augmented and virtual reality.

This record year of patents granted was made possible by Bank of America inventors around the world, who mirror the diversity of the bank's clients. Bank of America has more than 7,300 inventors across 42 U.S. states and 14 countries, with 26% of them being women. Worldwide, fewer than 17% of inventors are women.

Bank of America spends $12 billion annually on technology, of which $3.8 billion will be allocated to new technology initiatives in 2024. Over the last decade, the company has spent $32 billion on new technology initiatives. These ongoing investments – combined with our high-tech, high-touch approach – continue to enhance the client experience across all channels, and to drive operational efficiencies across our company.

One of the greatest measures of success is the degree to which clients engage with our digital solutions. Today, 57 million clients leverage our digital capabilities to help manage their financial lives. Last year, our clients digitally connected with their finances a record 23.4 billion times, an 11% increase year-over-year.  

Bank of America patents have been cited by other companies in the financial services and technology industries more than 53,000 times, further demonstrating the company's influence on technology and innovation.

Melissa Gordon Glenn
Global Information Security executive and Bank of America patent holder 
"Having the ability to ideate and collaborate with other bank teammates on functionality that could enhance our clients' interactions and experiences is inspiring. It was a proud moment for me when my first patent was granted," shared Melissa. "In addition to the great work my team achieves daily, I want them to be empowered to innovate and be personally connected to how our company supports Responsible Growth. To do so, I encourage each of my team members to identify at least one idea for patent consideration annually." 

Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,800 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 57 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE: BAC).

Reporters May Contact:

Alex Lawson, Bank of America
Phone: 1.704.387.8291
alex.lawson@bofa.com

Catherine Page, Bank of America
Phone: 1.704.519.7314
catherine.page@bofa.com

 

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SOURCE Bank of America Corporation

FAQ

How many patents does Bank of America currently hold?

Bank of America now holds nearly 6,600 patents.

What was the year-over-year increase in Bank of America's patent portfolio?

Bank of America saw a 13% year-over-year increase in its patent portfolio.

How much does Bank of America allocate to new technology initiatives annually?

Bank of America allocates $3.8 billion to new technology initiatives in 2024.

What technology categories do Bank of America's new patents cover?

Bank of America's new patents cover information security, AI, machine learning, online and mobile banking, payments, data analytics, and augmented and virtual reality.

How many inventors does Bank of America have globally?

Bank of America has over 7,300 inventors globally.