SoftBank, Mizuho to rely on AI for consumer loans

Maria Nikolova

J.Score, a joint venture of SoftBank Group and Mizuho Bank, will be using an AI score to determine the best loan conditions, including interest rates and the maximum amount of money to be provided.

Artificial Intelligence (AI) will help J.Score, a joint venture of SoftBank Group Corp (TYO:9984) and Mizuho Bank, offer loans tailored to the specific needs and life style of each consumer. In an announcement on Monday, the companies unveiled the launch of their new service which will decide on consumer loans based on an AI score. In fact, an AI technology will be responsible for the calculation and analysis of the score.

To make use of the new service, a potential borrower must register on J.Score’s website and then proceed to answer to a minimum of 18 basic questions, concerning one’s life style and preferences. The AI solution may ask questions about one’s dreams, for instance, in order to determine how a person will spend the money.

The novel technology aims to detect future high earners too. This means that people whose current income is not very high when they apply for a loan but are determined as high earners by the AI solution may not be neglected and will not (as usual) get a small amount of money.

The AI score will help J.Score determine the most appropriate interest rates and maximum amount of money to be provided to each customer.

In what is seen as an attractive feature for the younger clientele, the service is entirely web-based, with dedicated mobile applications on their way.

AI keeps taking over more roles in financial services companies, especially when it comes to performing time-consuming tasks involving heavy data amounts. Thus, AI has now been used for monitoring AML compliance. On Monday, Sumitomo Mitsui Financial Group, Inc. (TYO:8316) and SAS Institute Japan Ltd. announced a partnership that will see AI being used in the AML compliance department of Sumitomo Mitsui Banking Corporation. AI will be used to detect and report suspicious transactions with regard to anti-money laundering regulations.

Market surveillance is also an area where AI is applied. In February 2017, Japan Exchange Regulation (JPX-R) and Tokyo Stock Exchange, Inc. (TSE) announced they are working on using AI in their market surveillance operations thanks to technologies developed by NEC Corp (TYO:6701) and Hitachi, Ltd. (TYO:6501).

Read this next

Metaverse Gaming NFT

DCentral Miami brings together all of Web3, NFT, DeFi, Metaverse

The world’s biggest Web3 meeting entitled DCENTRAL Miami is set to take place November 28-29, featuring a lineup of some of the biggest and most influential names in the blockchain space.

Digital Assets

Crypto ban expands across UK banks as Starling joins ‎crackdown

UK digital bank Starling has banned ‎all customer payments related to cryptocurrencies, another blow for the crypto traders ‎who recently saw a sizable number of banks deciding not to ‎finance the wobbly asset class.‎


Markets Direct at FIA EXPO 2022: Traders know what they want from brokers

The FIA Expo 2022, one of the most prestigious events within the global derivatives trading industry, took place in Chicago on 14 & 15 November.


FIA Expo 2022: TNS addresses public cloud limitations with hybrid infrastructure

November is the month of the FIA Expo, one of the largest futures and options conferences in the world, bringing together regulators, exchanges, software vendors, and brokers in one place: the Sheraton Grand Chicago Riverwalk. 

Retail FX

Italy’s regulator blacks out Finance CapitalFX, MFCapitalFX

Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) has shut down new websites in an ongoing clampdown against firms it accuses of illegally promoting investment products in the country.

Retail FX

Suspected leader of Honk Kong ramp-and-dump scam appears in court

A leader of a sophisticated ramp-and-dump scheme made his first court appearance in a Hong Kong court today, charged with market manipulation and various criminal offences. The case stems from an earlier joint operation of Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), and the local police. 

Institutional FX

Cboe’s James Arrante discusses growing demand for fixed income, FX algo

We caught up with James Arrante, senior director of FX & US treasuries product and business management at Cboe Global Markets, to uncover emerging trends in the FX and fixed income markets and learn more about the bourse operator’s recent initiatives.

Retail FX

Eurotrader acquires UK broker Petra Asset Management

Eurotrader Group has formally entered into the UK market with the acquisition of FCA-regulated broker, previously named Petra Asset Management Ltd. The new entity operates under the brand name Eurotrade Capital Ltd.

Inside View, Retail FX

The Game of Chess Continues – OPEC, China and the Oil Market

Over the past decade, the US has been complaining about the amount of power which the BRIC group, and specifically China, has on the global economy. BRIC stands for Brazil, Russia, India and China; these were the world’s fastest growing economies. Only in the past 10 months, the US has turned their attention toward OPEC due to the prices of fuel. Nevertheless, China seems to have a strong influence even over the price of crude oil.