NRI and Mizuho Bank Complete Research Addressing Applications of AI in Eliminating Tedious Derivative Contract Procedures

NRI and Mizuho Bank Complete Research Addressing Applications of AI in Eliminating Tedious Derivative Contract Procedures
01.08.2017 08:30 am

NRI and Mizuho Bank Complete Research Addressing Applications of AI in Eliminating Tedious Derivative Contract Procedures

Artificial Intelligence , Trading Systems , Derivatives and OTC Derivatives , Investment Management

Nomura Research Institute, Ltd. (NRI), a leading provider of consulting services and system solutions, in collaboration with Mizuho Bank, Ltd., today announced the completion of a proof-of-concept (PoC) project developed to examine the applications of artificial intelligence (AI) solutions for derivative contract operation.

Mizuho executives made the improvement of the operational efficiency of derivative contract procedures a priority and approached NRI to develop a test in which the bank could examine how AI solutions could address this need. Traditionally, the standard derivative contract procedure at Mizuho included the exchange of print ISDA contracts with clients via FAX and PDF and the manual archiving of all the information. As each contract contains an enormous amount of information that is unique to each individual contract, registering the information to the system and referring to past contracts requires not only specialized knowledge but also a large amount of time-consuming manual input.

The PoC confirmed that OCR (Optical Character Recognition) can digitize ISDA contracts and the system can define, extract, and archive the sum total of information from the digitized contract into a format that can be easily accessed and searched after the fact. As a result, the time it takes for analysts to register ISDA contract information into the system and refer to past information is significantly decreased.

“We are excited to continue to develop new AI applications for functions across the financial industry with partners like Mizuho,” said Hiroyuki Nakayama, General Manager of Financial Business Planning Division of NRI. “NRI is at the forefront of AI research and development for the financial services sector in Asia, and we continue to learn new and exciting applications for the technology that we are seeking to implement further through strong partnerships.”

Masahiro Ueki, Senior Vice President of Legal and Compliance Team and Global Markets Coordination Department at Mizuho said, “In addition to the improved operation efficiency brought by the AI implementation, we expect these exciting new systems can also maintain a high-level understanding of ISDA contract operations across the board.” Based on the PoC results, Mizuho intends to continue working with NRI to develop a full-fledged system solution for all derivative contract operations.

NRI has been researching and conducting PoC for AI applications in document management, including contracts and payment record processing. NRI recently evaluated the iManage RAVN AI platform to automatically extract data from thousands of ISDA contracts. iManage automates routine cognitive tasks, provides powerful insights and streamlines how professionals work, while maintaining the highest level of security and governance over critical client and corporate data.

Related News

Meet the minds at the forefront of travel tech at Arabian Travel Market

Leading global technology provider CodeGen will showcase its innovative TravelBox reservation and sales system at Arabian Travel Market Dubai (28 April – 1 May 2019). 

... Read more »

Oracle Adds AI Smarts to Increase Oracle ERP Cloud’s Market Lead

Oracle has extended the artificial intelligence (AI) capabilities within Oracle Enterprise Resource Planning (ERP)... Read more »

Massive Analytic wins DASA Competition to help win the Invisible Battlespace

Private UK based artificial intelligence pioneer, Massive Analytic Limited, has won a ... Read more »

Using advanced AI to stay ahead of cybercriminals

As the threat landscape continues to evolve rapidly, it now includes increasingly sophisticated, zero-day malware that traditional security approaches can no longer keep pace... Read more »

Secutech 2019 to pinpoint real-world business applications through six ‘smart solution pavilions’

Asia’s security industry is once again beginning to shift its attention towards Taipei, as preparations continue ahead of the 22nd edition of Secutech. As anticipation... Read more »

Velocity & B-Hive partnership links Fintech hubs in pan-European collaboration

The IA’s fintech innovation hub and accelerator, Velocity, and Brussels-based fintech ecosystem B-Hive have signed a partnership designed to boost fintech innovation across the... Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App