Bank of America blockchain patent spree continues. The American multinational banking giant has filed a patent application for using blockchain in “ATM as a Service”.
This patent application is one of the more recent ones from Bank of America. The United States Patent and Trademark Office (USPTO) has published it in December 2018.
Blockchain has a significant potential for disrupting the banking and financial services industry. As experts note, blockchain has key use cases in the following areas:
- Payment processing;
- Clearance and settlement systems;
- Fundraising;
- Securities;
- Loans and credit;
- Trade finance.
However, the realization of this potential needs wider adoption of this technology on the part of banks and financial services institutions. That’s not easy, as banks have reservations about crypto.
Banks need to look at blockchain as separate from cryptocurrencies. They need to explore the technology in depth. This will enable them to get a better grip on where blockchain stands currently, and what more does it need.
The good news is that Bank of America is doing exactly that. They already have a large number of blockchain patents. More are on their way. They are covering a wide range of use cases.
A patent to transform ATMs?
Bank of Americas‘ latest patent application looks at transforming the ATMs with blockchain. One bank might operate a particular ATM, however, ATMs already serve in a “Multi-purpose, Multi-tenant” mode.
Customers of different banks can use an ATM even if it’s dedicated to one particular bank. They also use ATMs for purposes beyond just cash withdrawal.
The Bank of America blockchain patent application for “ATM as a Service” seeks to expand the scope of ATMs. Blockchain will enable ATMs to handle larger transaction volumes.
The bank foresees blockchain improving the transaction throughput in ATMs. Gift registry transactions, money transfers, and even point-to-point video communication using an ATM could be possible, as the patent application indicates.
Bank of America will implement an open protocol for a robust data transport layer. The proposed solution will use modern data encryption, moreover, it will incorporate other security measures.
Bank of America has several other key blockchain patents, for e.g.:
- They plan to use blockchain for data storage;
- The bank has a patent for a crypto exchange system.
Banks exploring blockchain
While Bank of America is innovating rapidly using blockchain, the good news is that other banks are also exploring the technology. Royal Bank of Canada plans to use blockchain for credit score transparency. American Express plans to use blockchain to expedite payment transactions. The increased interest on the part of banks augurs well for blockchain.
