Sumitomo Mitsui Financial Group, Inc. (President & Group CEO: Tōru Nakashima, hereinafter “SMFG,” and collectively with its group companies, “SMBC Group”) has reached a basic agreement with Anderson Mori & Tomotsune (hereinafter “AMT,” which includes the general partnership named Anderson Mori & Tomotsune and other group entities), Volody Products Pvt Ltd (Founder & Director: Dinesh Sharma, hereinafter “Volody”), and LexisNexis Japan Co., Ltd. (President & Representative Director: Pascal Rosier, hereinafter “LN”) to jointly develop a Contract Lifecycle Management* (hereinafter “CLM”) business. In pursuit of this initiative, SMBC Legal X, Inc. (President & CEO: Hideki Mishima, hereinafter “SMBC Legal X,” pronounced “cross”) will be established, subject to approval by Japan’s Financial Services Agency as a specialized company for advanced banking services.
*CLM refers to the digital optimization and streamlining of all stages associated with contract management, leveraging advanced technologies.
1. Background to Establishment
SMFG established SMBC CloudSign, Inc. in 2019 to promote cloud-based electronic contracting in Japan. Electronic contracts have rapidly gained adoption, especially during the COVID-19 pandemic. However, much of the contract process—including drafting, storage, and analysis—remains analog and inefficient. Additionally, a lack of legal compliance awareness and expertise among employees and companies involved in contract-related work sometimes leads to improper contracting practices and even corporate scandals. These issues are not limited to Japan but are prevalent globally. To comprehensively address these challenges and enhance corporate governance and efficiency worldwide, SMBC Legal X is being launched in partnership with industry-leading players.
2. Business Concept
The new company will develop a platform called “LegalXross” to seamlessly digitalize the entire contract process. In addition to traditional e-contracting, it will offer a wide range of services powered by generative AI and other cutting-edge technologies, including automated contract drafting and review, contract management and analysis, workflow oversight, and legal compliance training. The platform aims not only to improve operational efficiency but also to accelerate business and management for clients. It will be deployed not only in Japan but also globally, especially in the APAC region.
This represents the largest legal tech alliance in Japan to date, with the goal of becoming the global No.1 in CLM. SMFG, AMT, and Volody will enter into a capital and business alliance, with plans to invest in SMBC Legal X by the end of 2025. This marks Japan’s first capital and business partnership between a megabank and a major law firm.
Roles of Each Company
- SMFG: Overall business development leveraging the credibility of a megabank and its corporate client base
- AMT:Joint product development leveraging the legal expertise of one of Japan’s leading law firms
- Volody: Provision of innovative CLM products from India, joint product development, and co-development in India
- LN: Legal compliance database provision, joint product development using global legal tech expertise, and domestic/international sales collaboration
3. Investment in Volody
As SMBC Legal X assumes CLM system development and operations, Volody will also lead joint market development in Asia, especially India. SMFG is currently exploring a potential investment in Volody through the “SMBC Asia Rising Fund” to further strengthen this collaboration.
SMBC Group continues to accelerate open innovation with partners from various industries, aiming to resolve societal challenges and meet diverse customer needs through the advancement of its products and services.
*The “SMBC Asia Rising Fund” is a corporate venture capital fund jointly established in 2023 by Sumitomo Mitsui Banking Corporation and Incubate Fund, a venture capital firm. The fund aims to strengthen SMBC Group’s business and deliver new solutions to customers by investing in promising startups across Asia, building partnerships, and promoting innovation in business models and technology.
