Japan’s Mizuho Financial Group ( Mizuho ) has selected US fintech group FIS’ balance sheet manager solution to help the financial services giant navigate evolving regulatory reporting requirements.

The solution, the fintech notes, offers deep and extensive modelling, scenario and simulation capabilities to implement industry-best practice asset liability management ( ALM ) processes. The solution will be used by Mizuho to support timely compliance with revised domestic accounting standards in Japan.

With the Accounting Standards Board of Japan slated to revise domestic accounting standards to align with global counterparts, namely International Financial Reporting Standard 9 ( IFRS 9 ), Mizuho required a system designed to help ensure regulatory compliance under the updated rules, but also offering adaptability to manage growing business requirements.

IFRS 9 requires credit losses on financial assets to be measured and recognized using the expected credit loss ( ECL ) framework. To meet this need, the balance sheet manager solution provides advanced automation capabilities and can help Mizuho handle multiple accounting-related processes after ECL calculation without the need for additional customization.

The new standards require banks to use forward-looking analysis to regularly assess credit losses across their loan portfolios, a shift from prior accounting methods. This process involves handling large datasets and complex scenario modelling, which is highly resource-intensive and susceptible to errors without advanced solutions.

By automating these complex processes, the FIS solution helps unlock insights for more strategic decision-making, with a clear understanding of risk exposure and capital allocation.

“FIS’ balance sheet manager stood out for its ability to handle complex accounting needs with precision,” adds Yutaro Aiuchi, Mizuho’s deputy general manager for credit risk management. “New efficiencies through data integration and reporting will also help us optimize our risk profile and enhance our competitiveness.”