Mizuho develops AI PoC for contract procedures
Written by Chris Lemmon
Japan’s Mizuho Bank and the Nomura Research Institute (NRI) announced the completion of a proof-of-concept (PoC) project which examined 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.
The PoC confirmed that OCR (Optical Character Recognition) can digitise ISDA??contracts and the system can define, extract, and archive the sum total of information from the digitised contract into a format that can be easily accessed and searched. As a result, the time it takes for analysts to register contract information into the system and refer to past information is significantly decreased.
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.”
Hiroyuki Nakayama, general manager of financial business planning division of NRI, added: “We are excited to continue to develop new AI applications for functions across the financial industry with partners like Mizuho.”
Based on the PoC results, Mizuho intends to continue working with NRI to develop a fully-fledged system solution for all derivative contract operations.