Abstract
Financial technology has become an important part of the banking industry in recent times. This study attempts to propose a framework to identify emerging areas and trends using financial business method patents. Based on the abstracts of financial business method patents registered at the United States Patent and Trademark Office, this study first applies latent Dirichlet allocation to identify emerging topics. The probability of the annual occurrence of each topic is adjusted through the exponentially weighted moving average to reflect the importance of the recent probability of topics. Each topic is classified as “hot” or “cold” depending on whether the exponentially weighted moving average of the probabilities exceeds the threshold. We applied survival analysis to the time gap of recurrently becoming hot from a cold status with the associated factor of financial business method patents. The findings suggest that the topic with the short granted period and high forward citation is likely to become hot. In addition, the topic that is aged and specific in narrow areas is likely to continuously change into the hot or cold status. The approach proposed in this study contributes toward understanding topic emergence in the financial area and pursuing sustainable development.
Highlights
Innovation has been considered as the important factor in achieving a sustainable economy [1]
Business Method (BM) patents for financial technology play a critical role in sustainable development in the financial industry [2,3,4]
This study considers pure financial BM patents that are closely related to the financial systems of institutions such as banks, security companies, and insurance companies
Summary
Innovation has been considered as the important factor in achieving a sustainable economy [1]. Business Method (BM) patents for financial technology play a critical role in sustainable development in the financial industry [2,3,4]. Such flow from innovation to business led by BM can eventually contribute to the sustainable growth of the economy. The financial applications of BM patents have increased significantly due to the recent industrial convergence of the IT and financial sectors, i.e., “Fintech” [7,8,9,10,11] Many financial institutions, such as banks and credit card companies, focus on financial BMs, mostly concentrating on Fintech [12,13]. Non-financial companies have begun to recognize the importance of financial BM patents in the era of industrial convergence [14,15]
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