SimpleForm Supports Development Bank of Japan's Advanced Screening Operations

SimpleForm Co., Ltd. (Meguro-ku, Tokyo; CEO Shota Tashiro; hereinafter "the Company") supported the Development Bank of Japan (Chiyoda-ku, Tokyo; President and CEO Seiji Chika; hereinafter "DBJ") in enhancing its screening operations for new transactions and ongoing management. To leverage corporate qualitative information, which is central to this initiative, the Company's "SimpleCheck," which streamlines corporate research processes, and "SimpleMonitor," which monitors critical changes in corporate risk information, were introduced.

Background of Introduction

In recent years, there has been an increase in credit risk incidents stemming from compliance violations such as fraudulent subsidies, falsified financial statements, and inappropriate accounting. For financial institutions, a crucial challenge in managing credit and other risks is how to promptly identify signs of potential risks that cannot be fully grasped by traditional quantitative information, such as financial data, regardless of company size or whether they are listed or unlisted.

DBJ has historically conducted effective screenings based on quantitative information like financial data. However, there was a growing need to strengthen its system for more promptly and accurately identifying signs of potential risks, such as credit risk and misconduct risk, that emerge before being reflected in numerical data, especially during ongoing management. Recognizing these challenges, the sales and screening departments were considering enhancing monitoring methods to timely grasp risk changes in target companies.

Furthermore, the compliance department, which had been conducting precise verification of corporate attribute information based on diverse information sources during new transaction considerations, faced the challenge of systematically organizing scattered qualitative information and effectively utilizing it. They were exploring ways to enhance the mechanisms supporting the verification process to maintain and improve judgment standards and facilitate smoother information sharing within the bank.

Overview of the Initiative

DBJ evaluated the following points and decided to utilize the Company's services in its sales branches and screening/compliance departments:

Use of "SimpleCheck" in verification operations during new transaction considerations:

* It is a database that can centrally and timely acquire a wide range of qualitative and risk information (*) for corporations with limited disclosure, such as unlisted companies. * (*) Negative news regarding compliance violations, risk information related to affiliated corporations, etc. * It offers operability that allows for quick understanding and sharing of necessary verification information, and visually confirms relationships between target companies and related companies/individuals, as well as negative information.

Use of "SimpleMonitor" in ongoing management operations for loans and investments:

* It is a cloud service that can timely and centrally detect important risk changes (*) based on external information during ongoing management operations for loans and investments. * (*) Various information indicating signs of risk manifestation, such as changes in representatives, registration changes, administrative dispositions, decrease in the number of pension insured persons, and occurrence of negative news. * Alert confirmation via email notification is possible, enabling ongoing monitoring without significantly increasing the operational burden.

Service Overview

We aim to update screening operations for corporate transactions to an optimal non-face-to-face format, providing support for building and operating screening systems. We are engaged in collecting qualitative information on 5 million corporations nationwide and building a database necessary for screening operations. Based on this database, we develop and provide products such as "SimpleCheck," "SimpleMonitor," and "SimpleInterview." These services are adopted primarily by banks, credit card companies, and platformers, contributing to financial crime prevention and improved operational productivity.

SimpleCheck

By simply entering a company name, information is instantly collected, and a report is generated in 30 seconds, along with information uniquely researched and accumulated by the Company. It covers 5 million companies nationwide, including small and medium-sized enterprises and emerging corporations, which were difficult to cover with web searches or existing company information databases, and encompasses information that typically takes several days to collect and organize.

SimpleMonitor

It constantly monitors target corporations and automatically notifies when important information or attributes related to risk assessment change. It proactively eliminates false positives, which are a major factor in operational burden during monitoring, and narrows down notifications to only critical changes, allowing resources to be concentrated on more effective risk countermeasures.

Company Profile

Company Name: SimpleForm Co., Ltd.

Head Office Location: Cross Air Tower 8F, 1-5-1 Ohashi, Meguro-ku, Tokyo

Representative: Shota Tashiro, Representative Director CEO

Established: October 1, 2020

Capital: 2,934 million JPY (including capital reserve, etc.)