Bank of America Corp. continues to break records in innovation — logging a more than 15% year-over-year increase in patents granted.
Charlotte-based BofA (NYSE: BAC) was granted 512 patents in 2021, compared to 444 in 2020. Growth in multiple patent categories drove those results, including artificial intelligence, blockchain, data analytics and payments. Other important topics overall are mobile/consumer banking (18% of total patents granted), information security (17%) and programming (16%).
BofA closed out the year with 5,191 patents granted or applied for from more than 6,000 inventors across 42 states and 13 countries. More than 1,000 BofA employees applied for 804 patents in 2021, an 11% increase from the 722 patents that previous year.
"Our Bank of America teammates are the most creative and inspiring minds in financial technology," Aditya Bhasin, chief technology and information officer, said in a statement. "Their client-focused passion for turning ideas into innovation ensures we are continually ideating and delivering capabilities and digital solutions that help our clients live better financial lives."
Bhasin was not available for an interview. He took over his current role several months ago, as part of a larger executive team shakeup.
Cameron Wadley, technology senior vice president at BofA, said AI and machine learning will continue to be focus areas. Those capabilities support many processes, including BofA's virtual assistant, Erica, and forecasting models. Demand for those insights is growing. They help customers make better decisions faster, he said.
Wadley said the timeline for patents varies depending on how developed an idea is. Once finalized, the team performs research and then drafts an application. He said, on average, it takes two years for a filed application to receive a patent.
BofA takes a citizen approach to innovation. It encourages all employees to innovate. That leads to more ideas from more perspectives, Cathy Bessant, vice chair of global strategy, said in a previous interview with the Charlotte Business Journal. She was BofA's chief operations and technology officer for more than a decade.
"Bank of America has a dedicated team that works with the different lines of business and technology teams to help assess new innovations," Wadley said. "I appreciate the freedom to bring forward incomplete ideas with the knowledge that like-minded teammates at the bank can help me enrich them into fully formed solutions."
One patent was granted in 2021 for a digital integration token, which uses biometrics to access the CashPro app. Another example is a system that analyzes and remediates computer application vulnerabilities, thus helping to improve security.
Last year, the bank increased its annual budget for new technology to about $3.4 billion. That's compared to the $3 billion budget CEO Brian Moynihan implemented in 2010. Each year, BofA budgets roughly $10 billion for technology as a whole. Covid-19 has further accelerated its prioritization of digital capabilities.
