# Fin-R1: A Large Language Model for Financial Reasoning through Reinforcement Learning

arXiv: https://arxiv.org/abs/2503.16252 · HTML: https://mlsanity.com/paper/2503.16252/

## Key facts

- Cited by 83 papers in the map (data through 14 Oct 2026).
- Placed in Reasoning for agents, planning and code, one of 17 directions in LLM reasoning.
- Builds on 55 of its 81 references that are in the map.
- First posted on arXiv 20 Mar 2025.

## Placed in

- LLM reasoning / [Reasoning for agents, planning and code](https://mlsanity.com/lr/reasoning-for-agents-planning-and-code/)

## Builds on (most cited first, 30 of 55)

- [Attention Is All You Need](https://mlsanity.com/paper/1706.03762/) (2017)
- [BERT: Pre-training of Deep Bidirectional Transformers for Language Understanding](https://mlsanity.com/paper/1810.04805/) (2018)
- [Adam: A Method for Stochastic Optimization](https://mlsanity.com/paper/1412.6980/) (2014)
- [Training language models to follow instructions with human feedback](https://mlsanity.com/paper/2203.02155/) (2022)
- [Proximal Policy Optimization Algorithms](https://mlsanity.com/paper/1707.06347/) (2017)
- [LLaMA: Open and Efficient Foundation Language Models](https://mlsanity.com/paper/2302.13971/) (2023)
- [Chain-of-Thought Prompting Elicits Reasoning in Large Language Models](https://mlsanity.com/paper/2201.11903/) (2022)
- [DeepSeekMath: Pushing the Limits of Mathematical Reasoning in Open Language Models](https://mlsanity.com/paper/2402.03300/) (2024)
- [Direct Preference Optimization: Your Language Model is Secretly a Reward Model](https://mlsanity.com/paper/2305.18290/) (2023)
- [Scaling Laws for Neural Language Models](https://mlsanity.com/paper/2001.08361/) (2020)
- [PaLM: Scaling Language Modeling with Pathways](https://mlsanity.com/paper/2204.02311/) (2022)
- [Qwen2.5 Technical Report](https://mlsanity.com/paper/2412.15115/) (2024)
- [Deep reinforcement learning from human preferences](https://mlsanity.com/paper/1706.03741/) (2017)
- [Qwen Technical Report](https://mlsanity.com/paper/2309.16609/) (2023)
- [Gemini 1.5: Unlocking multimodal understanding across millions of tokens of context](https://mlsanity.com/paper/2403.05530/) (2024)
- [Constitutional AI: Harmlessness from AI Feedback](https://mlsanity.com/paper/2212.08073/) (2022)
- [Trust Region Policy Optimization](https://mlsanity.com/paper/1502.05477/) (2015)
- [mT5: A massively multilingual pre-trained text-to-text transformer](https://mlsanity.com/paper/2010.11934/) (2020)
- [PaLM 2 Technical Report](https://mlsanity.com/paper/2305.10403/) (2023)
- [Tulu 3: Pushing Frontiers in Open Language Model Post-Training](https://mlsanity.com/paper/2411.15124/) (2024)
- [BloombergGPT: A Large Language Model for Finance](https://mlsanity.com/paper/2303.17564/) (2023)
- [A Comprehensive Overview of Large Language Models](https://mlsanity.com/paper/2307.06435/) (2023)
- [FinQA: A Dataset of Numerical Reasoning over Financial Data](https://mlsanity.com/paper/2109.00122/) (2021)
- [Contrastive Preference Optimization: Pushing the Boundaries of LLM Performance in Machine Translation](https://mlsanity.com/paper/2401.08417/) (2024)
- [JudgeLM: Fine-tuned Large Language Models are Scalable Judges](https://mlsanity.com/paper/2310.17631/) (2023)
- [The Stack: 3 TB of permissively licensed source code](https://mlsanity.com/paper/2211.15533/) (2022)
- [Rethinking Pre-training and Self-training](https://mlsanity.com/paper/2006.06882/) (2020)
- [Explainability for Large Language Models: A Survey](https://mlsanity.com/paper/2309.01029/) (2023)
- [MinerU: An Open-Source Solution for Precise Document Content Extraction](https://mlsanity.com/paper/2409.18839/) (2024)
- [Is DPO Superior to PPO for LLM Alignment? A Comprehensive Study](https://mlsanity.com/paper/2404.10719/) (2024)

## Built on by (most cited first, 30 of 83)

- [Video-R1: Reinforcing Video Reasoning in MLLMs](https://mlsanity.com/paper/2503.21776/) (2025)
- [JudgeLRM: Large Reasoning Models as a Judge](https://mlsanity.com/paper/2504.00050/) (2025)
- [An Empirical Study on Reinforcement Learning for Reasoning-Search Interleaved LLM Agents](https://mlsanity.com/paper/2505.15117/) (2025)
- [Patho-R1: A Multimodal Reinforcement Learning-Based Pathology Expert Reasoner](https://mlsanity.com/paper/2505.11404/) (2025)
- [The Avengers: A Simple Recipe for Uniting Smaller Language Models to Challenge Proprietary Giants](https://mlsanity.com/paper/2505.19797/) (2025)
- [QiMeng-CodeV-R1: Reasoning-Enhanced Verilog Generation](https://mlsanity.com/paper/2505.24183/) (2025)
- [OJBench: A Competition Level Code Benchmark For Large Language Models](https://mlsanity.com/paper/2506.16395/) (2025)
- [DianJin-R1: Evaluating and Enhancing Financial Reasoning in Large Language Models](https://mlsanity.com/paper/2504.15716/) (2025)
- [NeuroStrike: Neuron-Level Attacks on Aligned LLMs](https://mlsanity.com/paper/2509.11864/) (2025)
- [SportR: A Benchmark for Multimodal Large Language Model Reasoning in Sports](https://mlsanity.com/paper/2511.06499/) (2025)
- [StepFun-Formalizer: Unlocking the Autoformalization Potential of LLMs through Knowledge-Reasoning Fusion](https://mlsanity.com/paper/2508.04440/) (2025)
- [FinChain: A Symbolic Benchmark for Verifiable Chain-of-Thought Financial Reasoning](https://mlsanity.com/paper/2506.02515/) (2025)
- [ComfyUI-R1: Exploring Reasoning Models for Workflow Generation](https://mlsanity.com/paper/2506.09790/) (2025)
- [Trading-R1: Financial Trading with LLM Reasoning via Reinforcement Learning](https://mlsanity.com/paper/2509.11420/) (2025)
- [MolReasoner: Toward Effective and Interpretable Reasoning for Molecular LLMs](https://mlsanity.com/paper/2508.02066/) (2025)
- [Unilaw-R1: A Large Language Model for Legal Reasoning with Reinforcement Learning and Iterative Inference](https://mlsanity.com/paper/2510.10072/) (2025)
- [AceSearcher: Bootstrapping Reasoning and Search for LLMs via Reinforced Self-Play](https://mlsanity.com/paper/2509.24193/) (2025)
- [Detecting LLM-Generated Text with Performance Guarantees](https://mlsanity.com/paper/2601.06586/) (2026)
- [MASS: Muli-agent simulation scaling for portfolio construction](https://mlsanity.com/paper/2505.10278/) (2025)
- [ReasoningShield: Safety Detection over Reasoning Traces of Large Reasoning Models](https://mlsanity.com/paper/2505.17244/) (2025)
- [How Far Are We from Optimal Reasoning Efficiency?](https://mlsanity.com/paper/2506.07104/) (2025)
- [Conformal Selective Acting: Anytime-Valid Risk Control for RLVR-Trained LLMs](https://mlsanity.com/paper/2605.20270/) (2026)
- [Alpha-R1: Alpha Screening with LLM Reasoning via Reinforcement Learning](https://mlsanity.com/paper/2512.23515/) (2025)
- [Reasoning or Overthinking: Evaluating Large Language Models on Financial Sentiment Analysis](https://mlsanity.com/paper/2506.04574/) (2025)
- [Agentar-Fin-R1: Enhancing Financial Intelligence through Domain Expertise, Training Efficiency, and Advanced Reasoning](https://mlsanity.com/paper/2507.16802/) (2025)
- [Video-R4: Reinforcing Text-Rich Video Reasoning with Visual Rumination](https://mlsanity.com/paper/2511.17490/) (2025)
- [MMEmb-R1: Reasoning-Enhanced Multimodal Embedding with Pair-Aware Selection and Adaptive Control](https://mlsanity.com/paper/2604.06156/) (2026)
- [From Chatbot to Digital Colleague: The Paradigm Shift Toward Persistent Autonomous AI](https://mlsanity.com/paper/2606.14502/) (2026)
- [FinCoT: Grounding Chain-of-Thought in Expert Financial Reasoning](https://mlsanity.com/paper/2506.16123/) (2025)
- [Reasoning on Time-Series for Financial Technical Analysis](https://mlsanity.com/paper/2511.08616/) (2025)

## Abstract (arXiv)

In recent years, general-purpose large language models (LLMs) such as GPT, Gemini, Claude, and DeepSeek have advanced at an unprecedented pace. Despite these achievements, their application to finance remains challenging, due to fragmented data sources, intransparent reasoning processes, and weak transferability to business applications. In response, we introduce Fin-R1, a reasoning LLM designed for financial scenarios. With a compact size of 7 billion parameters, Fin-R1 reduces deployment costs while addressing the aforementioned challenges. Its development follows a two-stage pipeline. First, we construct Fin-R1-Data, a high-quality financial dataset consisting of 60,091 chain-of-thought (CoT) samples, distilled and filtered from multiple authoritative benchmarks to ensure consistency and reliability. Second, we train Fin-R1 using Fin-R1-Data through supervised fine-tuning (SFT), followed by reinforcement learning (RL). This stage substantially improves the model's ability to solve complex financial reasoning tasks, yielding outputs that are both accurate and interpretable. Despite its relatively small parameter scale, Fin-R1 achieves competitive empirical performance across established financial benchmarks and demonstrates practical utility in compliance checking and robo-advisory. Our code is publicly available at https://github.com/SUFE-AIFLM-Lab/Fin-R1, and has already attracted over 700 stars.