Mitsubishi UFJ Financial Group plans to establish an organization as early as next month to look into the use of artificial intelligence in loan application screenings and market trend predictions.
The new entity will be called MUFG AI Studio. MUFG aims to develop new financial services and improve operational effectiveness by proactively adopting AI in the financial sector.
The financial group plans to use AI to screen loan applications through analyzing the risk of bankruptcy and other factors because AI is capable of understanding corporate earnings and financial flows. The AI is also expected to read worldwide news reports and forecast changes in stock and bond prices.
Under the initiative, MUFG is also considering using AI in other areas, including to collect expertise from people who have performed well in trading bonds and to find new loan borrowers. MUFG would then use that expertise to train its employees.
MUFG plans to concentrate its AI researchers, who are currently scattered throughout the group, for joint research with external entities including the University of Tokyo and an information technology start-up. MUFG aims to put the results into practical use in fiscal 2019 or later.
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