Mizuho and IBM develop new AI tech for financial market forecasting
The tool uses AI developed by IBM Research – Tokyo, including a “unique” artificial neural network technology called the Dynamic Boltzmann Machine (DyBM) which mimics the human brain’s learning scheme.
The market forecasting tool is being deployed within Mizuho Financial Group’s Global Markets Company to work on asset liability management (ALM) and treasury portfolio operation.
Mizuho says ALM and treasury portfolio are “always important for banks, especially when loan demands are sluggish, and forecasting sharp rises and falls in interest rates and stock prices is a top priority”.
According to Mizuho, it leveraged outputs of multiple forecast models using market data for the last two decades to identify past dates which have high degree of similarity with the current market, then mapped the subsequent price trends of each similar date to develop the new forecasting tool that predicts future price trends and volatility.
Also in Japan, and in a separate development published today (27 March), Mitsubishi UFJ Financial Group (MUFG)’s subsidiary Japan Digital Design (JDD) formed an alliance with ExaWizards for AI developments in the financial sector.