Home  Journals  Finance and Credit  39(615) - 2014 October

A patent for financial services as a tool to protect the technological independence of financial institutions

Available online: 23 October 2014

Subject Heading: FINANCIAL ACTIVITY

JEL Classification: 

Pages: 2-10

The article considers the formation of a new class of inventions relating exclusively to the financial services industry. The author points out that the impact of technologies on the financial industry development has increased manifold in recent decades. In the environment of electronic trade platforms, high-frequency trading algorithms, communication systems and information processing, even now any success or failure critically depends on technologies, systems and methods, which are available at a particular financial institution. This growing dependence has highlighted the importance of intellectual property as both an offensive and a defensive means, and designated the financial industry as a perspective field of operations of modern patent aggregating agents. The author emphasizes that the progress in developing the resource base of the financial industry is evident, especially on such examples as retail robots, communication systems and electronic payment processing. In particular, the practical use of retail robots in recent decade has led to a sharp increase in the market share of robot-assisted traders at all global stock exchanges. Tenderers, financial regulators and economists are actively discussing the advantages and deficiencies of particular systems and different aspects of their impact on pricing processes in the stock market. However, it is no less important that the technological race in this area inevitably leads to selecting the best hardware and software complexes, where software algorithms of trade and hardware technological solutions are tightly protected by patents and know-how, including those that belong to financial institutions that have invested considerable material and human resources in their development. The article provides a brief history of the origin of the new well-established patent-for-financial-services concept. The author considers possible strategic goals of patent protection of intellectual property assets in the financial industry, and also demonstrates that a patent for financial services is the most important instrument serving to protect the technological independence of financial institutions.

Keywords: invention, intellectual property, patent, portfolio, financial, industry, institution, service

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