Strictly Confidential
Japanese Financial Institution and FinTech 18 October, 2017
Senior Digital Strategist Ikuma Ueno
II Overview of FinTech
III FinTech Innovation in Mizuho
2 I Digital Innovation Department
About Mizuho Financial Group, Inc.
Company Mizuho Financial Group, Number of offices name Inc. 796 offices in Japan and 116 overseas offices Stock New York Stock Exchange (MFG) listing (In more than 40 countries/regions)） (code) Tokyo Stock Exchange (8411) Japan: Location of Europe, 787 head office Tokyo, Japan Middle offices East, Number of and employees 59,179 Africa: The 24 Americas: offices 40 offices Number of 796 offices in Japan Asia and offices Oceania: 116 overseas offices 54 offices Total assets (FY2016) 1.8 trillion USD Consolidate d gross profit 19 billion USD (FY2016）
3 I Digital Innovation Department
ü “New business creation” through collaborations with domestic and international external organizations and open innovation with the goal of delivering “customer-oriented improvements in service quality”.
FinTech Advisory Research companies committees institutes 研究機関 Mizuho’s Strengths 3rd Party Strengths
Customer Base Innovative Creation Digital Innovation Department
Chief Digital Innovation Officer Information Base Leading Edge Tech + approx. 70 team members (including dual- hatted members) Financial Assessment Knowledge & Tech Capabilities Internal Mizuho organizations Retail & Corporate & Global Global Asset Business Institutional Corporate Markets Management Banking Company Company Company Company Company Global Products Unit Research & Consulting Unit
4 I Digital Innovation Department
External companies Investments in Percentage of the team with Percentage of mid-career networked with FinTech funds educational backgrounds hires in the team other than art sublects 2,500 9 ％ ｌ 48 52 ％ Amount of usefu industry insight Ex)Information engineering, Ex)JCB, Sony Bank, nuclear engineering, BTMU, NTT, NTT Data, Japan 183 Bay Area 291 information management, nifty, Yahoo, education, sociology
Presentations given/ Media Percentage of the team events jointly organized appearances with work/study abroad England,France, Press releases experience Canada,India, Indonesia each1 USA,7
35 China,Hongkong 100 Articles 65 ％ 4 (15 outside of Japan) Based on data current as of April 2017 200 Data for events, jointly held events, press releases, and articles are totals for the period of April 2016 to March 2017
5 I Digital Innovation Department
II Overview of FinTech
III FinTech Innovation in Mizuho
6 II Overview of FinTech
FinTech as a part of the Internet of Things (IoT) ü FinTech is an integral part of the Internet of Things üThe two fields share both underlying technologies and similar concepts
Internet of Things
Google: Driverless cars Industrial Internet
FinTech
Industry 4.0 Sharing Economy
Source: Prepared by Mizuho Bank's Industry Research Division
7 II Overview of FinTech What is behind the spread of the IoT?
Industrial revolution-scale progress in technologies Consequence
Developments in sensor 1 Evolution of devices technology
Telecommunications/network Great leap in the 2 Expansion of the internet infrastructure amount of data Business models Utilization of distributed leveraging 3 Boom in smartphone information devices ownership IoT
Cloud storage Development of data 4 Cost minimization for data ↓ Technological innovations concentration/storage technologies aggregation FinTech More sophisticated 5 algorithims Improvments in data processing Cost minimization and enhancing Discontinuous progress in AI precision for data analysis
Source: Prepared by Mizuho Bank's Industry Research Division
8 II Overview of FinTech
FinTech companies’ entry into the market ü The main markets of the FinTech companies is Retail x Payment. ü Even for large corporations, the entry into the settlement field is relatively large
Market entry of 350 FinTech companies globally (2015) Major business areas of Japanese FinTech companies
25% Retail SME
Investments 14% 10% 13% Payment 12% 9% 3% Retail 個人 Lending 4% 2% 6% 中中小企業小SME企業 1%
2% Account Large corporations大企業 managemen t
(Source) Mizuho Research Institute, with reference to the information from McKinsey & Company (Source) Mizuho Research Institute
9 9 II Overview of FinTech
FinTech companies in Japan ü Contrast with overseas, although the number is small, FinTech startup is growing in each field in Japan
FinTech startup companies in Japan (by business area)】
Payments & Remittances PFM Investments (Retail)
Management & Funding Business Operation Support Security Block Chain
(Source) Mizuho Research Institute, with reference to the companies’ websites, etc.
10 10 I Digital Innovation Department
II Overview of FinTech
III FinTech Innovation in Mizuho
11 III Fintech Innovation in Mizuho
Key technologies to focus
ü There are three underlying technologies in the spotlight: big data, artificial intelligence and blockchain ü Digital Innovation Department is utilizing these underlying technologies to create new financial business
Big Data
Artificial Intelligence Blockchain
12 12 III Fintech Innovation in Mizuho
An Overview of Mizuho’s Approach to FinTech ü The business domains shown below are expected to be the main users of FinTech ü Various approaches are being set in motion in expectation of “revenue growth through new business creation” and “cost reductions through business sophistication” Business domains Examples of Mizuho approaches Expected outcomes
Financial Asset management Asset investment & Asset management, consulting information investment & consulting New business Financial information creation
Payment Syndicated loan International International Lending Lending services services money transfers security settlement Revenue growth Remittance & payment services
Balance inquires Counter service Call centers Encryption & sharing Business of records, etc. Other routine tasks, etc. sophistication
Cost reductions
13 13 Awards
BAI Global Banking Innovation Awards 2016 Disruptive Channel （ BAI：Bank Administration Institute ） Innovation Innovation in Banking
EFMA Finalist Physical Distribution Award 2016 （ EFMA：The European Financial Management Association ）
6th Consecutive MCPC Award ( MCPC：Mobile Computing Promotion Consortium )
Recognized as a desirable brand for investors who place importance on the enhancement of medium-to-long-term corporate value, based on a comprehensive evaluation which factored in our financial innovation using new technologies such as big data, AI, blockchain, and robotics, as well as our transparency on policies relating to strategic application of IT.
14 14 III Fintech Innovation in Mizuho
The establishment of the joint venture company
15 III Fintech Innovation in Mizuho
The Establishment of Blue Lab Co., Ltd.
FG/BK WiL Third Party Shareholders Role expectations of Blue Lab Itochu Corporation CDIO World Sompo Japan Nipponkoa Widen our view towards various industries and fields, not limited to finance Insurance Inc. Innovation The Dai–ichi Life Insurance Company Create a next generation business model utilizing new technology The Norinchukin Bank Digital Innovation LAB Marubeni Corporation Department Vision: To become “The best Incubator Company in Japan” Sumitomo Mitsui Trust Bank, Limited Basic Concepts 14.9% 55.1% 30% 1. Open Innovation Blue Lab Co., Ltd. Flexibly collaborate with other industries in and outside Japan CEO= CDIO as well as with other banks - Collaborate in both phases: business model development and WiL Staff commercialization ①Digital Innovation Department Secondment / dual appointment ②Mizuho DL Financial Technology 2. Platform Secondment / dual appointment Industry Research Division and others Create a system which every participant can profit from ③Other Companies’ Staff Secondment / dual appointment ④Venture, Startups - Not necessarily just Mizuho 3. Commercialization oriented
Realize JPY 100bn value added until FY2020 Finance Agriculture Travel 4. Global Format Agricultural Travel Venture Venture Location: Tokyo and Silicon Valley BK, etc. Corporation Company
Venture WiL BK, etc. BK, etc. 5. Governance Management
WiL WiL Follow business style of venture companies in Silicon Valley Source: Mizuho Financial Group Digital Innovation Department
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Overview of Blue Lab
Heading Overview
Trade Name Blue Lab Co., Ltd.
Head Office 2–5–1 Atago, Minato–ku, Tokyo Atago Green Hills Mori tower ※ Also planning to use WiL Silicon Location Valley Office
Date Established June 30, 2017, starting operation in mid-August, 2017
Capital 10 million yen ※Total amount of 1,000 stocks to be issued
Composition of President, CEO, & Representative Director：Daisuke Yamada 【FG/BK Executive Officer and CDIO】 Directors (3)： Gen Isayama 【WiL President】 Tetsuya Akutsu 【FG/BK Chief of Strategic Planning Department 】 Executive Nobuhisa Abe 【FG/BK Chief of Digital Innovation Department】 Officers Auditor： Masaya Kubota 【WiL Partner】 WiLx 【WiL Japanese Branch】：55.1% Mizuho Bank：14.9% Composition of Other Shareholders：Total 30%- Other shareholders are as below (each company: 5%) Shareholders Itochu Corporation, Sompo Japan Nipponkoa Insurance Inc., The Dai–ichi Life Insurance Company,The Norinchukin Bank, Marubeni Corporation, Sumitomo Mitsui Trust Bank, Limited
Within finance related business based on the Banking Law Business ・Consulting business, Finance and Economy Research and Research business, venture capital business, and data managing business etc. ・FG CDIO and people in charge of digital innovation department when established 【approx. 30 people, including Composition of trainees from other banks】 Staff ・from WiL, dual appointment 【some】 ・Considering hiring from other shareholders and outside companies
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Reference: Office Space in the New Company (Atago Green Hills Mori Tower)
Mizuho space （approx. 50 tsubo）
Project room
meeting room (MAP) ※3 minutes walk from Kamiyacho or Onarimon Station
Co-working space WiL space
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The creation of a business model derives from the incorporation of elemental technologies
Cloud Big Data Internet Blockchain Algorithm
Theスコ first アリ score ン グモデルをlending 活用しbusiness た国内初のスコin Japan utilizing ア・ レthe ン ディscoring ン グ model J株式会社.Score COJ. Sco., LTD r e Date設立年月日 Established:： 2016 Nov年 1,11 2016月1 日 Incorporation of Capital:資本金 JPY 5bn： 50 (Mizuho:億円（ みずほ： Softbank ソ フ 50:50) ト バン ク 50： 50） Incorporation of Start事業開始予定： of Operations:2017 First年度前半 half of FY 2017 Elemental ビックBig Dataデータ Elemental Technologies Technologies
Finance金融 Algorithmアルゴリ Analysis ズム解析
Commu nication通信 ※※スマホアプリImage of Smartphone のイ メ ージ application
SNS etc.他 ①全く(1) 新しA brand いFinTech new FinTechブランドbrand ②最新のテク(2) Big Data ノ utilizing ロ ジーを the 活用し latest たビtechnology, ッ ク データ 、 Individual properties AI によるスコscoring using ア AI 個人属性 (3) Good service ③優れた商品サービ ス ※お客さ まの許諾に基づく データ 利用 (4) Comfortable operation through smartphone ※Data used based on customers’ consent ④スマホUI,UI newにこ UX だわっ た快適な操作性、 新鮮なUX ⑤店舗を(5) Low 持たないロ cost operation ーコ ストby not なオペレ holding ーショany stores ン
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Pipeline List 20 Business Ideas
# Pipeline # Pipeline
1 Blockchain / DLT : Trade Finance 11 Paperless Electronic Authentication・Contract
2 Digital money 12 Aggregation of Middle・Back Office Operation
3 Overseas “to C” E-money 13 KYC/AML/ fraud detection
4 Algorithm Trading 14 Usage of analyzing Sales Journal
5 Credit Scoring Model 15 Usage of VR (Virtual Reality)
6 Auto Loans for New Customers 16 Usage of various Open API
7 Installment Finance outside Japan 17 Digital Bank utilizing AI
8 Micro Finance outside Japan 18 “Minpaku” Project
9 Usage of data between other industries 19 Sales of Wallet Insurance
10 Enhancement of Means of Communication 20 Mixture of Agriculture, Logistics and Finance
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Pipeline 1
Blockchain/DLT : Trade Finance
21 III Fintech Innovation in Mizuho
22 III Fintech Innovation in Mizuho
Blockchain: Trade Finance
If we share the trade documents among all parties which currently take time to transmit the documents, it is possible not only to shorten the transaction time but also to make administrative work more efficient and reduce fixed costs
Current Scheme Scheme using Blockchain
2. Issue of L/C 9. Settlement of Payment Settlement of Payment
SWIFT SWIFT
7. Document check L/C Advising L/C Issuing Blockchain L/C Advising L/C Issuing bank bank bank 8. Handover of Trade bank Documents 3. Advising L/C 1. Request of L/C issuance L/C B/L 6. Hand in Trade Documents 10. Handover of Trade Documents Insurance Importer Company Shipping Insurance Exporter Importer Invoice Company Policy
4. Shipment of goods 11. Showing B/L Share documents among parties 5. Receiving B/L 12. Receiving goods by uploading them
Insurance Shipping Exporter Company 5. Hand in insurance policy Company
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Pilot Real Transaction
On July 6th 2017, executed a real transaction (not a proof of concept) － 1st Case in the world to use Corda for TF № 項目等 Actual Scheme Using Blockchain 1 Exporter Marubeni Head Office Settlement of Payment Mizuho Mizuho 2 Importer Marubeni Australia Head SWIFT Sydney Office Branch Sompo Japan Nipponkoa 3 Insurance Company L/C Advising L/C Issuing Insurance Inc. bank Blockchain bank 4 Shipping Company - 5 L/C Issuing bank Mizuho Bank L/C B/L Marubeni Australia Mizuho Bank Sydney Insurance 6 L/C Advising bank Importer Branch Company Insurance Invoice Policy 7 Exporting Amount Max. USD4mm 8 When June, 2017 Marubeni Share documents among parties Head by uploading them 9 Platform 1 Fabric (IBM) Office Shipping Exporter 10 Platform 2 Corda (R3) Company
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Supply Chain Box “SUV Manufacturing” Global Supply Chain Global Supply Chain Image ≒ Accumulation of Trade Finance
Wrapped in Blockchain ⇒ Commoditization: Tentative Name “Supply Chain Box” SUV manufacturing ・ Shorten the term of shipping and finance factories ・ Visualization of inventories
Supply Chain Box I.P. ⇒Share among Mizuho・SIer・Startups
Expanding Supply Chain Box
⇒ Global Manufacturing (Airplanes, automobiles, consumer electronics etc.) ⇒ Expanding to other industries (General Contractor etc.)
25 Strictly Confidential III Fintech Innovation in Mizuho For Discussion Purpose Only
Pipeline 2
Digital money
26 (c) Mizuho Financial Group, Inc. Strictly Confidential III Fintech Innovation in Mizuho For Discussion Purpose Only “J-Coin” Vision x “Open Data Bank” Vision J-Coin Open Data Bank Toward realizing a world that X Monetizing settlement information uses less cash
Business model that enables the Business model that enables the company to monetize settlement fees (sub-source) company to monetize settlement fees and settlement big data (main source)
Develop a new nationwide platform and create an income source based on a new business model. Nationwide platform 1) Company that issues common electronic money for all Japanese banks ( “J-Coin vision”); 2) Information bank that accumulates settlement information (“Open Data Bank vision”)
27 (c) Mizuho Financial Group, Inc. Strictly Confidential III Fintech Innovation in Mizuho For Discussion Purpose Only
“J-Coin” Vision x “Open Data Bank” Vision
“J-Coin” vision ● Mega banks will take the initiative in putting an end to the existing B2C settlement business model. ・To move toward a “world that uses less cash” － To increase the convenience of consumers and member stores by significantly reducing settlement fees ⇒ To share benefits from IOT advancement with a wide range of users ⇒ The source of the benefits will be the “fixed expenses of financial institutions,” which will be reduced with the realization of a move toward a world that uses less cash. Reduction of fees for ATM installment and costs for cash operations ⇒ Drastic reform of branch operating policy
・Japanese banks will enjoy great synergy in competing against the surge of giant settlement companies from overseas. － To justifiably exercise the strength of Japanese banks: Potentiality of deposit accounts for which KYC procedures were completed
“Open Data Bank” vision ● To create a new income source by using and utilizing settlement information obtained from J-Coin (electronic money) transactions ・The issuance of J-Coin is simply a means. The real purpose is the accumulation and utilization of settlement information. － Establishment of a Japanese version of FICO, enhancement of the consulting business through the analysis and utilization of settlement information, etc.
“J-Coin” vision x “Open Data Bank” vision ● To clearly identify “areas of cooperation” and “areas of competition” and to increase added value for the nation’s economy 1. Areas of cooperation: Development of a nationwide platform (J-Coin issuance bank + Open Data Bank） 2. Areas of competition: Utilization of the settlement information accumulated by Open Data Bank
28 (c) Mizuho Financial Group, Inc. Strictly Confidential III Fintech Innovation in Mizuho For Discussion Purpose Only “J-Coin” Vision x “Open Data Bank” Vision
J - Coin Open Data Bank
○ “All-Japan electronic money” issued by all Japanese banks ○ To collect settlement information and monetize utilization of • Electronic money pegged to JPY, unlike Bitcoin information －Cash converted into electronic money will be automatically transferred to • Settlement using J-Coin is a means of information collection. one’s smartphone from an account for which KYC has already been undertaken. －Settlement is “Red Ocean” and information utilization is “Blue Ocean”. • All Japanese banks will issue electronic money under a single brand name. ○ Open Data Bank will be established as a shared infrastructure. － Electronic money brands such as Mizuho Coin and BTMU Coin will be consolidated into J-Coin. • Stakeholders will be 3 mega banks, local banks, leading member stores, etc. • Movement toward realizing a world that uses less cash and cards • Will be utilized as information infrastructure of the Japanese version of FICO ○ Promotion of an economy using less cash, for B2C settlement score. • It has not been determined how settlement information will be monetized yet. • Cash will be replaced with the combination of credit cards and J-Coin for B2C settlement in Japan. －The number of small-amount credit card settlements will be decreased. Japanese banks will resist companies from different industries entering the market, in a concerted manner.
QR Code QR Code QR Code QR Code QR Code
External External Guiding each bank’s customers that are holding an account parties Settlement information will be collected by Open Data Bank. parties for which KYC has already been undertaken to the J-Coin x issuer company
J-Coin issuer company Open Data Bank
Issuance of J-Coin means a transfer of the balance left in the account for which KYC has already been undertaken. Japanese version of
External parties
In-house Public Sharing processed information with customers for information information advertisement and marketing utilization
29 (c) Mizuho Financial Group, Inc. Strictly Confidential III Fintech Innovation in Mizuho For Discussion Purpose Only “J-Coin” Vision x “Open Data Bank” Vision (Overview)
Concern for settlement transactions and information Member stores and financial institutions will be able to being monopolized by giants from overseas utilize various information. which KYC has already already has KYC which holding an account for been undertaken to J Guiding customers customers Guiding J KYC J-Coin issuer Japanese Japanese - J-Coin 加盟店 邦 銀 邦 銀 Coin Member stores holding holding an account for banks undertaken to foreign company
Guiding customers customers Guiding banks 発行会社 KYC Coin which KYC has has KYC which
黒already been 顧
giants 船 客 顧 送 送 客 客 客 -
Big Data 決 決 Utilization of information settlement Utilization of
済 information 済 settlement 情 Open Data Bank 情
B 報 settlement 報 Settlement information 決 Cto 利 BigBig Data Data 利 B2C B2C have no access to 邦 決 banks Japanese 済 活 活 information. settlement 銀 済 情 用 Information 用 情 報 決 情 遮 報 済 報 断
Issue 1 Issue 2 Issue 3 ○ Uncertainty about the early establishment of a J- ○ Uncertainty about the expansion of the users’ and ○ Specific measures for the utilization of settlement Coin issuer company member stores’ base information • All Japanese banks can cooperate together for the • Expansion will depend on the pursuit of convenience • Development of infrastructures to support the utilization of settlement information common good so as to reduce fixed expenses, through and economic efficiency. ü Environment of utilization that does not allow giants the promotion of a move toward an economy that uses ü Reduction of settlement (remittance) fees (for from overseas to monopolize the market less cash. users) • Privacy and permission regarding the use of information • Consolidation is needed before multiple coin issuer ü Reduction of member fees (for member stores) ü Response in compliance with the revised Act on the companies can be established. ü Granting of incentives Protection of Personal Information • Aim to disseminate the service all over Japan by 2020 ü Easy-to-understand system of J-Coin having equal • Monetization of settlement information to be examined in the through the early establishment of the company. value to JPY future
30 (c) Mizuho Financial Group, Inc. Strictly Confidential III Fintech Innovation in Mizuho For Discussion Purpose Only
Advanced Examples of Countries Overseas: Swedish Electronic Money, “Swish”
In Sweden, more people are using “Swish,” a mobile settlement service jointly established by the country's main banks. At the same time, as more banks have decided to stop handling cash at their branches and are removing ATMs, an economy where cash is used less is becoming a reality.
Cash circulation
Application for quick settlement Norway Sweden Denmark on a smartphone
Service December, 2012 commencement Source: Websites of the central banks of each country Note: Rate against the circulation amount of notes and currency in 2007, which is set at 100 Number of users 5.2 million (total population: 9.75 million) Survey result “Which settlement methods did you use in the past month? Ø Remittance between individuals (Multiple answers allowed)” Purpose Ø Payment at brick-and-mortar shops and EC sites 2010 2012 2014 2016 Cash 94% 93% 87% 79% Ø Established by the 6 main banks in Sweden Debit card 91% 94% 93% 93% Ø Authentication is supported by a security Credit card 27% 29% 31% 32% Features application for personal authentication, Mobile Bank ID, with a personal number Swish - - 10% 52% that is similar to “My Number” in Japan, all Online bank 53% 48% 57% 57% via collaboration Source: Riksbank, [-] means that the Swish service was not available at that time.
Source: Prepared by MHBK’s Industry Research Department
31 (c) Mizuho Financial Group, Inc. III Fintech Innovation in Mizuho
Pipeline 4
Algorithm Trading
32 III Fintech Innovation in Mizuho
Algorithm Trading
Improved Algorithm Trade Strategies (forecasting trends in stock prices) through AI, Deep Learning * Preparing for international patent applications (patent pending in Japan)
Study by AI Forecast stock prices every minute Time-series data (every night) for 30 mins later and closing session Real time forecasting (during trading hours)
Forecast rate Accuracy rate
Degree of confidence of AI forecast Source: Mizuho Securities - Forecast rise / equilibrium / fall through Deep Learning Selecting only - Unlike traditional statistical models, found even more complex characteristics Accuracy Rate High those with high of the market confidence No. of Forecast Low - Through the learning process, accumulate past data and continuously make adjustments to the forecast model Selecting those Accuracy Rate Low with low - Follow changes in the market through daily learning confidence No. of Forecast High - Threshold value “0.2%” and “30 minutes” as class period to classify rise / equilibrium / fall are most suitable after thorough simulation
33 III Fintech Innovation in Mizuho
Collaborative business・Contract Scheme with Matsuo Lab, University of Tokyo
・ Aim : Collaborative development of High quality Algorithm utilizing AI in ‘Market making’and ‘Trading’ in Foreign exchange ・ Prefer the reward to be paid based on performance (Mr. Matsuo). Since it is difficult for the University of Tokyo to sign a contract which states the reward is based on performance, Mr. Matsuo concluded a contract between 3 companies, including CAO IGPI and BAI. ・ Concluded on the date of first contact (Sep.14th 2016) and data was masked when handed over ・ Aiming to implement the first AI in 2017 and increase quality by renewing contract once a year
Collaborative Research
FG Digital Innovation Department Matsuo Lab BK Foreign Exchange Department Academic Support Staff BK Market Development Department Students from Matsuo Lab
Compensation Payments Salary (performance- Payments based reward)
Yutaka Matsuo CAO (Chief Analytics Officer)
Researching artificial intelligence (reasoning, machine learning, deep learning), natural language processing, social network analysis, social media, web mining and business models in University of Tokyo. Presenting academic papers mainly in the Japanese Society of Artificial Intelligence in Japan and in WWW International World Wide Web Conference and Association for the Advancement of Artificial Intelligence outside Japan. Working as Track Chair in the Web Mining Area in WWW. Now, working on deep learning and collaborative research focusing on data analysis with companies in Japan. Worked as Associate Professor in the School of Engineering in University of Tokyo Institute of Engineering Innovation (Young Leaders Cultivation Program)/ Center for Knowledge Structuring / Department of Technology Management for Innovation and currently as Chairman of Consumer Intelligence Tutorial in the School of Engineering in University of Tokyo and Visiting Associate Professor at National University of Singapore.
34 III Fintech Innovation in Mizuho
Building FinTech alliances with startups n Opportunity: The respective strengths and capacities of banks and FinTechs are complementary l Potential: The possibility for explosive growth with the right partnership
Mega Banks Revolutionary customer experience FinTechs ✔ Extensive customer base ✔ Revolutionary concepts and Large customer base ✔ Long-term trust technologies ✖ ✔ Financial know-how Small customer base Low operating costs ✖ Untested credit standing ✖ Revolutionary concepts ✖ Financial know-how Low capital costs
Utilization of new technologies
Core banking system
Technically strong staff
Employees possess in-depth experience in financial tasks
Source: Prepared by Mizuho Bank's Industry Research Division
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