Mitsubishi’s FX subsidiary Kabu.com makes another push into AI

Japanese Forex broker Kabu.com Securities, a subsidiary of Mitsubishi UFJ Financial Group Inc (TYO:8306), is partnering with xenodata lab to deliver another offering based on artificial intelligence (AI) technologies to its clients.

The broker will offer its clients “xenoFlash for kabu.com” – a service that automatically analyzes the financial results of listed companies, based on a natural language processing mechanism. Based on this analysis, an infographic with the highlights is delivered. The “flash” part of the service name means that the analysis is made at high speed – it should take no more than a minute.

Another advantage of the service, on top of the fast delivery of the infographic, is that it aims to cover not only big companies but also small and mid-size ones that are not covered by big securities firms’ analysts. In the beginning, the service will cover 2,300 companies.

This is the second push by Kabu.com into the world of AI solutions. In May this year, the company introduced “AlpacaSearch for kabu.com”, a solution developed in collaboration with AI startup AlpacaDB Inc. The AI system scans the share prices of Japan-listed companies in order to identify shares showing similar trends. The AI technology detects correlations that human traders cannot notice and, after that, signals trading opportunities. In addition, this solution detects overvalued and undervalued stocks by identifying correlating stock charts. These findings are then used for a trading strategy where investors go long on the underperforming shares and go short on the overperforming shares in a correlated pair.

Another Japanese online trading expert – Monex Inc, a subsidiary of Monex Group, Inc. (TYO:8698), has begun the delivery of a new market analysis report, based on an AI program. The solution is a product of the collaboration between Monex and fintech company Good Moneyger, whose AI solution – VESTA, aims to reduce chances of investment loss by examining market data and cycles and estimating chances of market crashes.

Japan’s financial companies have been among the leaders in adopting AI solutions. The trend, of course, is not limited to Forex brokers. One of the first Japanese companies to have made the headlines early this year is Fukoku Mutual Life Insurance, which has announced it would make 34 staff members redundant over the deployment of IBM’s Watson AI solution. The company explained back then that the move was set to boost productivity while cutting costs significantly.