Mizuho Taps IBM Japan To Enhance Its Risk Management Efforts

Mizuho Bank and IBM Japan announced Thursday (Aug. 24) Mizuho Bank had begun operations toward more advanced and efficient risk management. The financial institution is employing cognitive technology to take measures against financial crimes such as terrorism financing. Governments around the world have urged financial institutions to regulate these types of crimes more severely.

In a press release, Mizuho Bank said it chose IBM’s recently announced RegTech offering, IBM Financial Crimes with Watson, to achieve its risk management goals. The Watson-powered software, which runs on the IBM Cloud, analyzes a wide range of data sources, including retrieving various news sources and extracting data using screening technologies, which were previously done by hand. The bank said the technology can efficiently verify financial crime investigation efforts.

Mizuho said it will test the service in Singapore, a country at the center of the growing Asian market which proactively imposes anti-crime regulations and incorporates FinTech.

To ensure customers can use banking services safely, and to protect financial infrastructure, Mizuho Bank noted it has accelerated its risk management approach to remain fully-compliant with regulations and prevent financial crimes. To do this, the bank is collecting and inspecting large volumes of data to meet requirements and prevent crime before it occurs.

After this verification, Mizuho said it will look at expanding the technology to its global network, including locations outside of Singapore.

This isn’t the first partnership between Mizuho Bank and IBM Japan. Back in June, IBM Japan announced the launch of API banking for Mizuho Bank, providing the financial institution with the ability to tailor services to its customers. In a press release, IBM announced the bank will use IBM Japan’s FinTech API solution, as well as IBM API Connect, on the IBM Cloud and IBM DataPower Gateway.

“API banking becomes a crucial step that helps drive open innovations by new technologies for customers, business partners, and Mizuho Bank,” said Masahiko Kato, senior technical officer with Mizuho Bank, in the press release. “Instead of competition, Mizuho continues to collaborate with business partners to create and provide innovative, secured services for customers.”