mlsanityData to 14 Oct 2026

Interpretable LLMs for Credit Risk: A Systematic Review and Taxonomy

arXiv 2506.04290 ↗First posted 4 Jun 2025q-fin.RM cs.LGcited by 5

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Abstract (arXiv)

Large Language Models (LLM), which have developed in recent years, enable credit risk assessment through the analysis of financial texts such as analyst reports and corporate disclosures. This paper presents the first systematic review and taxonomy focusing on LLMbased approaches in credit risk estimation. We determined the basic model architectures by selecting 60 relevant papers published between 2020-2025 with the PRISMA research strategy. And we examined the data used for scenarios such as credit default prediction and risk analysis. Since the main focus of the paper is interpretability, we classify concepts such as explainability mechanisms, chain of thought prompts and natural language justifications for LLM-based credit models. The taxonomy organizes the literature under four main headings: model architectures, data types, explainability mechanisms and application areas. Based on this analysis, we highlight the main future trends and research gaps for LLM-based credit scoring systems. This paper aims to be a reference paper for artificial intelligence and financial researchers.

Key facts. Cited by 5 papers in the map (data through 14 Oct 2026). Builds on 33 of its 82 references that are in the map. First posted on arXiv 4 Jun 2025.

Builds on

33 of 82 references.

References · 33

  1. 2023Large Language Models in Finance: A Surveycited by 226
  2. 2023PIXIU: A Large Language Model, Instruction Data and Evaluation Benchmark for Financecited by 222
  3. 2024FinBen: A Holistic Financial Benchmark for Large Language Modelscited by 141
  4. 2024A Survey of Large Language Models for Financial Applications: Progress, Prospects and Challengescited by 90
  5. 2024A Survey of Large Language Models in Finance (FinLLMs)cited by 79
  6. 2024A Survey on Large Language Models for Critical Societal Domains: Finance, Healthcare, and Lawcited by 74
  7. 2023Enhancing Financial Sentiment Analysis via Retrieval Augmented Large Language Modelscited by 68
  8. 2023Instruct-FinGPT: Financial Sentiment Analysis by Instruction Tuning of General-Purpose Large Language Modelscited by 58
  9. 2024Hallucination Detection: Robustly Discerning Reliable Answers in Large Language Modelscited by 44
  10. 2020Generating Plausible Counterfactual Explanations for Deep Transformers in Financial Text Classificationcited by 40
  11. 2023Making LLMs Worth Every Penny: Resource-Limited Text Classification in Bankingcited by 37
  12. 2024Open-FinLLMs: Open Multimodal Large Language Models for Financial Applicationscited by 36
21 more
  1. 2023Empowering Many, Biasing a Few: Generalist Credit Scoring through Large Language Modelscited by 24
  2. 2024Harnessing Earnings Reports for Stock Predictions: A QLoRA-Enhanced LLM Approachcited by 24
  3. 2025Assessing Consistency and Reproducibility in the Outputs of Large Language Models: Evidence Across Diverse Finance and Accounting Taskscited by 20
  4. 2024Large Language Model Adaptation for Financial Sentiment Analysiscited by 18
  5. 2024AraFinNLP 2024: The First Arabic Financial NLP Shared Taskcited by 12
  6. 2023Can LLMs be Good Financial Advisors?: An Initial Study in Personal Decision Making for Optimized Outcomescited by 11
  7. 2023Is ChatGPT a Financial Expert? Evaluating Language Models on Financial Natural Language Processingcited by 11
  8. 2024AI in Investment Analysis: LLMs for Equity Stock Ratingscited by 10
  9. 2024Extracting Structured Insights from Financial News: An Augmented LLM Driven Approachcited by 8
  10. 2024A Comparative Analysis of Instruction Fine-Tuning LLMs for Financial Text Classificationcited by 8
  11. 2024Systematic Evaluation of Long-Context LLMs on Financial Conceptscited by 6
  12. 2025Open FinLLM Leaderboard: Towards Financial AI Readinesscited by 6
  13. 2023Sentiment Analysis in Finance: From Transformers Back to eXplainable Lexicons (XLex)cited by 5
  14. 2024Credit Risk Meets Large Language Models: Building a Risk Indicator from Loan Descriptions in P2P Lendingcited by 5
  15. 2025Bridging Language Models and Financial Analysiscited by 4
  16. 2024Innovative Sentiment Analysis and Prediction of Stock Price Using FinBERT, GPT-4 and Logistic Regression: A Data-Driven Approachcited by 2
  17. 2025ZiGong 1.0: A Large Language Model for Financial Creditcited by 2
  18. 2025Predicting Liquidity-Aware Bond Yields using Causal GANs and Deep Reinforcement Learning with LLM Evaluationcited by 2
  19. 2024Enhancing Financial Inclusion and Regulatory Challenges: A Critical Analysis of Digital Banks and Alternative Lenders Through Digital Platforms, Machine Learning, and Large Language Models Integrationcited by 1
  20. 2024Explainable Risk Classification in Financial Reportscited by 1
  21. 2025LLM-Driven APT Detection for 6G Wireless Networks: A Systematic Review and Taxonomycited by 1

Built on by

Cited by year (2026 to 14 Oct)

Citing papers per year: 2026: 5.

5 papers.

  1. 2026Fair outputs, Biased Internals: Causal Potency and Asymmetry of Latent Bias in LLMs for High-Stakes Decisionscited by 1
  2. 2026Rethinking Data Augmentation under Covariate Shift: Invariant-Guided Diffusion and Prototype Reweightingcited by 1
  3. 2026Governing Generative AI Across Financial Institutions: A Framework for Generative AI Risk Controlcited by 0
  4. 2026AWARE-FX: An Auditable Knowledge-Guided AI System for Measuring Corporate Foreign-Exchange Hedging Disclosurecited by 0
  5. 2026When Does a Classifier Help an LLM? Classifier-Guided Prompting and Hybrid Classifier-LLM Models for Credit-Default Predictioncited by 0

Similar, not cited

Close in wording, no citation either way

  1. 2025Interpreting LLMs as Credit Risk Classifiers: Do Their Feature Explanations Align with Classical ML?
  2. 2026Communicating Credit Risk with Large Language Models: Evaluation of Explanations from Standard and Alternative Data-Based Models
  3. 2025Measuring What LLMs Think They Do: SHAP Faithfulness and Deployability on Financial Tabular Classification
  4. 2025Beyond the Black Box: Interpretability of LLMs in Finance
  5. 2025Credit Network Modeling and Analysis via Large Language Models ↗
  6. 2023Beyond Classification: Financial Reasoning in State-of-the-Art Language Models
  7. 2026Understanding LLM Evaluator Behavior: A Structured Multi-Evaluator Framework for Merchant Risk Assessment
  8. 2026Evolving LLM-Generated Features for Interpretable Classification