Patent strategies in the age of FinTech: Understanding IP management practices and open innovation across financial institutions

Purpose: This study examines the changing role of patent strategies within the financial sector, with a particular<br/>focus on the contrasting approaches of traditional banking institutions and FinTech firms and how these strategies shape innovation and competitive advantage in the context of ongoing technological and regulatory<br/>transformation.<br/>Design: The analysis draws on a longitudinal dataset of patent filings from 2000 to 2023, covering six leading<br/>global banks, five major credit card companies, and four prominent FinTech firms. Patent indicators such as<br/>filing volume, forward citations, jurisdictional dispersion, and ownership transitions are integrated with firmlevel financial data, including profitability metrics and structural characteristics, to examine how IP strategies<br/>relate to firm performance.<br/>Findings: The results reveal divergent IP strategies between incumbents and FinTech entrants. Traditional banks<br/>primarily employ defensive IP tactics, whereas FinTech firms pursue more exploratory and innovation-driven<br/>patenting activity. The analysis also shows that inter-firm collaborations, joint ventures, and acquisitions are<br/>increasingly used as strategic tools to strengthen IP assets and enhance competitive positioning.<br/>Implications: The findings underscore the strategic significance of IP management in the financial sector, not only<br/>as a protective mechanism but also as a way to create value, support partnerships, and strengthen competitive<br/>advantage. The study contributes to a deeper understanding of how financial institutions deploy IP strategically<br/>to drive innovation and growth in a changing market.