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NRI and Mizuho Bank use AI to alleviate derivative contract operation pain

First Published 1st August 2017

NRI and Mizuho Bank research addresses applications of AI in eliminating tedious derivative contract procedures

Tokyo - Nomura Research Institute (NRI), a provider of consulting services and system solutions and Mizuho Bank have 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.