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Business trends

In bid for survival, Japan's local banks tap AI to find eager borrowers

Seven lenders join hands in identifying the most robust clients

Artificial intelligence could help banks spot promising borrowers in previously unused data.

TOKYO -- Regional banks struggling to earn under Japan's ultralow interest rates will jointly develop a data analysis system to help identify higher-yielding medium-risk corporate borrowers.

Seven lenders -- Senshu Ikeda Bank, Gunma BankSan-in Godo Bank, Shikoku Bank, Chiba Kogyo Bank, Tsukuba Bank and Fukui Bank -- will create a financial technology research company as early as June. Each bank will take a stake of a little over 14% in the venture, which will have 100 million yen ($916,000) in initial capital.

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