2018 BAI Global Innovation Award Finalist
Best Application of Data Analytics, AI or Machine Learning in a Product or Service
Jibun Bank – Japan
AI Support Tools for Foreign Currency Deposits
Jibun Bank provides two AI support tools for foreign currency deposits.
One is “AI Foreign Currency Forecast,” in which AI analyzes historical exchange rate data and predicts the future rate. The user can see the results on their smartphone.
AI predicts fluctuations within one hour, one business day, or five business days for five currencies (USD, EUR, AUD, NZD, ZAR), and displays the results with facial icons that can be understood intuitively. In addition, we announce when foreign currency is likely to change with high probability by alert notifications.
The other AI support tool is “AI Foreign Currency Automatic Saving Plan,” in which AI judges the timing at which the yen appreciates the most against selected currency each month, and automatically deposits foreign currency with the amount set by the customer.
While it is difficult for professional dealers to predict currency rate fluctuations, our AI foreign currency forecast alert has achieved better result than the professionals.
Due to the economic environment with the continued negative interest rate in Japan, we observed the increasing need for foreign currency deposits with higher return, but there were three common challenges which our customers would face.
- As it was very difficult to predict currency fluctuation even by professional dealers, many of our customers were not confident to make judgement at the right timing of foreign currency rate changes from time to time.
- Even with accurate prediction on rate fluctuation, foreign currency deposits are not a practical choice unless an actual transaction can be made immediately with the information.
- Since some customers prefer to deposit foreign currency on monthly basis, rather than one-shot deal, we have been offering
“Foreign Currency Automatic Saving Plan”. However, the customer fund could only be deposited on a fixed date every month, and it may often not be the best rate during the month.
In order to solve the above problems, we decided to provide AI support tools for foreign currency deposits.
By offering a very reliable prediction of exchange rate fluctuation, “AI Foreign Currency Forecast” is very easy for users to judge deposit timing of foreign currency.
When entering randomly, the hitting percentage is 50 percent, the professional dealer’s is around 55 percent, AI foreign currency forecasting alert is 77 percent.
As the users can receive alert notifications and carry out foreign exchange transactions on smartphones which they always carry, the users no longer miss the timing of deposit.
By providing “AI Foreign Currency Automatic Saving Plan”, foreign currency deposits can be accumulated at a rate favorable for customers over conventional saving services.
We have adopted AI technology, such as image recognition and machine learning for “AI Foreign Currency Forecast” and deep learning for “AI Foreign Currency Automatic Saving Plan”. It is different from simple algorithmic trading technology which some FX service providers are using, because we would continue to learn from past and present data with AI technology. In particular, “AI Foreign Currency Automatic Saving Plan” is constantly improving accuracy by adopting deep learning of not just foreign exchange data but also other market data.
Jibun Bank was the first bank in Japan to adopt foreign currency support tools using AI and our AI initiative was featured in numerous media. It was also well received by our customers – more than 80,000 of them registered for the alert notification and the number of user acquisitions was twice what we originally planned. Monthly average users (MAU) of this service are about 30,000, and when alert notifications are delivered, we get 10 times more access than a normal day.
The average usage time of the tool is about 3 minutes and it had an effect of extending smartphone application usage time by 20%, which was the indication that they had been engaged more with Jibun Bank services. Due to the expansion in the use of these unique tools, foreign currency deposit balance increased by 25.5% in the initial 9 months after the product release.