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Distributed Application for Credit Risk Management are Provided on the Internet.
World's First Credit Risk Information Supply Chain Pilot System Using Open Standards, XBRL and XML/Web Services on the Web.

21 June, 2002

Tokyo Institute of Technology
Toshiba Corporation
Tokyo Shoko Research, Ltd.
Fujitsu Limited

Tokyo Institute of Technology (Tokyo Tech), Toshiba Corporation, Tokyo Shoko Research, Ltd., and Fujitsu Limited today announced co-development of a pilot "Credit Information Supply Chain" system that supports simplified construction of credit risk management systems. The Internet-based system, which utilizes XBRL and XML/Web services, will be put on the Tokyo Tech's web site ( from today.

The Credit Information Supply Chain system allows users to connect to and receive financial information, processing, and analysis services from specialized suppliers. In this experiment, business partners' financial information required for credit risk management is described in XBRL, an XML-based international standard language for financial information. Credit Risk Management System can be built easily by combining those application modules and such information services are provided via Internet. (See attachment).

This is the world's first pilot system covering a full financial information supply chain of financial information supplier, processing services, and the risk analysis application using XML/Web service technology (SOAP).


The recent increase in bankruptcies and the related financial damage is making companies increasingly aware of the importance of credit risk management. According to Tokyo Shoko Research, Ltd., total bankruptcy debt of FY2001 in Japan was more than $132 billion, the worst in Japan's history. However, introduction of a credit risk management system requires development and, maintenance of specialized functions, such as financial information input, processing, credit risk analysis, each of which requires high expertise. This has prevented companies other than financial institutions and major trading firms from introducing fully computerized system. For example, getting printed financial information on a business partner into a computerized system requires a dedicated optical character scanner/reader. The credit risk analysis function requires model updates every year. Any company developing these functions for itself can expect an initial investment of more than US$1 million.

Technical Accomplishment

In this experiment, XBRL, an open standard language based on XML for financial reporting, is used to describe financial information. Specialized functions necessary for the credit risk management system, such as the "Financial information service with XBRL (Tokyo Shoko Research)," "XBRL financial information processing (Fujitsu)," and "Credit risk analysis based on financial information (Toshiba)," are provided on the Internet, and connected with the system via the SOAP protocol. The pilot project demonstrates that it is possible to achieve simplified construction of a sophisticated credit risk management system, and also to be practical to be provided on the Internet as XML/Web services, and connected and used by users. The new system is the world's first experimental credit information supply chain using XBRL and XML/Web services.

(NOTE) SOAP (Simple Object Access Protocol)
SOAP is a Protocol to invoke services or data on other computers. It is based on XML, HTTP, etc., and specified by W3C, a standards body.

Roles of companies

This experiment is part of the "Credit Information Infrastructure Project" promoted by the Center for Research in Advanced Financial Technology (CRAFT) in Tokyo Tech, with the participation of industry and academia. The XML/Web service provided by each company in this experiment is as follows:

(1) Tokyo Shoko Research, Ltd. -- Financial information service with XBRL:
Provides an XML/Web service to get a company's financial information written in XBRL (2.0 Specification). The "Taxonomy Editor & Instance Creator" developed by Hitachi Systems & Services, Ltd. and a conversion tool from Fujitsu Limited is used to create and edit financial information in XBRL.
(2) Fujitsu Limited -- XBRL financial information processing:
Provides a service to generate various data using taxonomy and an instance of XBRL (2.0 Specification-compliant). This service includes a conversion service to a specified format, an efficient management analysis/reporting service, and a data extraction service to extract information needed for credit risk analysis.
(3) Toshiba Corp. -- Credit risk analysis:
Provides credit risk analysis service, such as data on bankruptcy probability, derived from a company's financial information. The core of the service is a credit risk analysis model, based on the CRAFT Scoring Method jointly developed by Toshiba Corp. and Tokyo Tech, and using the financial information database of Tokyo Shoko Research, Ltd.

Future Plan / Schedule for business use

XBRL is increasingly deployed in public institutions in Australia, etc. In Japan, forecasts show XBRL penetrating institutions in FY2003 and becoming, a common information platform between financial information providers (such as public institutions and credit agencies) and users (such as credit risk management systems and accounting systems) in FY2004. Companies participating in this experiment are active members of XBRL Japan, the XBRL standards body in Japan, and they plan to make their services available for business use after FY2003, depending on XBRL diffusion status. Credit risk information supply chain service is regarded as one of the most promising area to apply XML/Web services.

Press Contact

Tokyo Institute of Technology
Center for Research in Advanced Financial Technology

Toshiba Corporation
Corporate Communications Office

Tokyo Shoko Research, Ltd.
President's office

Fujitsu Limited
Public & Investor Relations


Supplementary information

XBRL (extensible Business Reporting Language)

XBRL (extensible Business Reporting Language) is an XML-based standard language developed to create, distribute, and utilize financial information for business reports. The XBRL specification makes it possible to create, distribute, and re-use electronic financial information regardless of software and platform. There are benefits such as cost reduction in system development and enhancement in system convenience for relevant parties such as public companies, private companies, accounting professionals (auditors), analysts, investors, players in capital markets, software vendors, credit information service companies, and governments. XBRL International Inc. promotes XBRL worldwide activities, and XBRL Japan works on development and promotion activities in Japan. The XBRL International Conference will be held this coming autumn in Tokyo.

XML/Web Services

XML/Web services is the generic name for combinations of service components available on Internet protocols. On an ordinary web site, a service is provided for a person in HTML, a language to display information on a Web browser. However, XML/Web services can provide a service directly to a system without human intervention by sending a message in XML, a data description language, with SOAP interface (*1). Combining various Web services makes it possible to provide brand-new highly value-added services. For example, a map display service, a rental car reservation service, and a weather information service can be combined to provide a new service like a drive course planning service. Some systems with Web services have already started to operate this year in Japan, and full-scale deployment in the market will begin in the very near future. Credit Risk Information Supply Chain using XBRL is expected to be a killer application of Web Services.

CRAFT Scoring Method

CRAFT Scoring Method is a credit risk analysis model, co-developed by Toshiba Corp. and Center for Research in Advanced Financial Technology (CRAFT) in Tokyo Tech. It uses a given financial information database as raw data, and shows developing procedures of models to calculate bankruptcy probability by data mining technology. CRAFT Scoring Method has following three features:

(1) The logic is open to public.
The logic of CRAFT Scoring Method has been presented in many academic conferences and is put on the Web.
(2) Accuracy of models is steady.
There is a phenomenon called the over-learning problem; a model adapting too much to learning data in data mining tends to bring lower accuracy with actual data. To avoid this problem, a new method is introduced to CRAFT Scoring Method. A criteria is specified by estimating model degradation due to over-learning and then the best model is selected considering the model degradation.
(3) Bankruptcy probability is calculated, reflecting on state of economy.
Considering the influence the state of the economy has on bankruptcy probability, this method can correct bankruptcy probability by checking the difference between the state of the economy at the model generation point and evaluation point.

Note that credit risk analysis model provided as a Web service in this experiment was developed in FY2000, based on CRAFT Scoring Method using 20,000 companies' financial information from Tokyo Shoko Research, Ltd. By inputting a target company's financial information for two fiscal years and the state of the economy, the company's bankruptcy probability a year later can be obtained.

<Participating university and companies>

(1) Center for Research in Advanced Financial Technology (CRAFT), Tokyo Institute of Technology
Promotes this experiment as part of "Credit Information Infrastructure Project"; Provides a public Web server; co-develops CRAFT Scoring Method with Toshiba Corp.
(2) Toshiba Corporation
Co-develops a credit risk analysis model, CRAFT Scoring Method, with Tokyo Tech; develops and sells package software of credit risk management system based on this method; in this experiment, develops a credit risk management application using XML/Web services.
(3) Fujitsu Limited
Provides a function to manipulate various data based on taxonomy and instance documents of XBRL (2.0 Specification) as Web services in this experiment.
(4) Tokyo Shoko Research, Ltd.
Provides a function to provide companies' financial information in XBRL (2.0 Specification) as Web services in this experiment.

Information in the press releases, including product prices and specifications, content of services and contact information, is current on the date of the press announcement,but is subject to change without prior notice.

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