Concentration of KIBIT sales activities in the RegTech sector

「During the interim consolidated accounting period, KIBIT Eye was adopted by Mizuho Securities Co., Ltd. to identify more accurately the services genuinely desired by customers using financial services through advanced analysis and verification of text data converted from call recordings. Shinkin Central Bank has also adopted KIBIT Eye to strengthen email and chat monitoring and enhance its compliance framework."]"Adoption rate: 100% of megabank groups, 80% of the five major securities companies」

「In addition to the new adoption of the audit AI solution KIBIT Eye, which anticipates fraud risks, by Mitsubishi UFJ Trust and Banking Corporation and Mitsubishi Electric Corporation, orders from existing customers also continued steadily」

「In the business intelligence field, the audit AI solution KIBIT Eye, which anticipates fraud risks, was newly adopted by Mitsubishi UFJ Trust and Banking Corporation and Mitsubishi Electric Corporation, while orders from existing customers continued to accumulate steadily」

「At the fraud-prevention study sessions hosted by the company, awareness among customers of preventing fraud risks before they materialize was confirmed by the record number of applications and other indications of companies' stronger commitment and growing needs. As social demand is also expected to intensify, we anticipate that this market will continue to expand.」

「During the cumulative first quarter of the fiscal year, KIBIT Knowledge Probe (キビット ナレッジ プローブ) was used in Japan Post Holdings' cross-group-wide Koe-katsu Project, and we announced a case study of efforts to strengthen the governance framework, demonstrating steady progress in the implementation of our AI technology in society.」

「Driven by demand for companies' digital transformation initiatives, KIBIT Communication Meter was adopted by multiple companies and performed steadily, resulting in revenue of ¥1,056.056 million, up 18.3% year on year.」

「In the business intelligence field, KIBIT Communication Meter was adopted by multiple companies in response to demand for compliance measures arising from companies' digital transformation initiatives, and revenue exceeded the same period of the previous year.」

「Orders for the email and chat audit system KIBIT Communication Meter (キビット コミュニケーション メーター) increased from multiple companies that recognized the superiority of our AI technology. In April 2022, we also began providing WordSonar for VoiceView (ワードソナーフォーボイスビュー), which analyzes the voice of customers at financial institutions to identify early signs of misconduct and improve customer loyalty.」

「In the business intelligence field, progress, particularly on large projects, fell short of initial expectations, and revenue for the cumulative third quarter of the fiscal year fell below revenue for the same period of the previous year."]"We will invest in personnel to build a sales organization capable of continuously winning projects in this growth market.」

「Adoption has progressed steadily, particularly in the financial sector, and on 28 June 2021 we announced that KIBIT products had been adopted by Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. to analyze call data with customers.」

「In business intelligence, the company expanded sales of an online communication audit system for early fraud detection and a compliance-check solution that analyzes records of sales meetings with customers based on laws and internal regulations, against the backdrop of accelerating corporate DX. As a result, adoption of these AI products progressed, particularly in the financial sector, and the company acquired multiple large-scale projects during the fourth quarter of the consolidated fiscal year.」

「In business intelligence, as new lifestyles and telework became established as part of measures against COVID-19, corporate digital transformation (DX) adapted to telework and other changes accelerated, further increasing demand for the company’s AI solutions. Against this backdrop, adoption of the company’s KIBIT products progressed during the third quarter of the consolidated fiscal year, and performance remained strong, including the acquisition of large-scale projects in the financial sector.」

「In addition, in business intelligence, adoption of KIBIT products is progressing in the financial sector, where IT investment remains solid, and the pipeline of large-scale projects is accumulating. The company will work to secure orders in the second half of the consolidated fiscal year.」

「In business intelligence, the company completed implementation of its products at several megabanks during the consolidated fiscal year and will work toward implementing them in large-scale corporate systems to further penetrate existing fields such as financial institutions and intellectual property.」

「Against this backdrop, the company began providing pharmaceutical companies with the “MR daily/weekly report review solution,” which uses its proprietary AI engine KIBIT. The solution was introduced in response to the Ministry of Health, Labour and Welfare’s “Guidelines on Promotional Information Provision Activities for Prescription Drugs,” whose application became mandatory in April 2019.」

「To address these customer needs, the company is actively selling products including the “KIBIT Advertising Review Solution,” designed to address the Act against Unjustifiable Premiums and Misleading Representations, the Financial Instruments and Exchange Act and other regulations. The company expects continued demand in the RegTech field and will continue to focus on it.」

「In business intelligence, revenue increased during the consolidated fiscal year as the number of adopting companies grew through deeper penetration into existing fields such as finance and intellectual property, while projects also grew in scale following the start of commissioned development.」

「In the second quarter, the company was selected for the Patent Office’s public solicitation project, “Improving the Efficiency of Trademark Registration Application Examination Using Artificial Intelligence,” for the second consecutive year. Demand for AI use in government agencies is also increasing, and the company continues to strengthen its response to this important sector.」

「In the first quarter, the company became the first AI-related project to be selected for the Financial Services Agency’s FinTech Demonstration Experiment Hub, and on 1 August 2018 it announced results showing that the use of KIBIT in financial institutions’ record-checking operations significantly improved operational productivity.」

「In addition to the steady accumulation of new adoptions by financial institutions, existing users also expanded their applications, using KIBIT across multiple departments to address new management issues beyond their initial implementation plans.」

「In business intelligence, in addition to the continued steady accumulation of new adoptions by financial institutions, existing users expanded their applications of KIBIT to address new issues across multiple departments beyond its initially intended uses. This is driving the AI business strongly.」

「In business intelligence, sales of the KIBIT Patent Explorer patent search and analysis system remained strong. This reflected not only the accumulation of adoption results at financial institutions as a solution to continuing RegTech needs, but also greater awareness of the product and understanding of its implementation benefits in the intellectual property field.」

「In the business intelligence field, we focused on meeting RegTech demand for rapidly improving operational accuracy through the use of AI in response to various regulations, including the Financial Instruments and Exchange Act. We achieved significant results during the first quarter, including decisions by 9 financial institutions to use our solutions, giving us firm confidence in our ability to address this demand.」

「In particular, the coined term RegTech (regulatory technology) has emerged in the financial sector following FinTech. Given the strong need to rapidly improve operational accuracy through the use of AI in response to tighter regulations, the company intends to concentrate its KIBIT sales organization on the RegTech sector going forward.」