Mitigating Hallucination in Financial Retrieval-Augmented Generation via Fine-Grained Knowledge Verification
On the map: Retrieval-augmented generation → Legal and financial RAG
Abstract (arXiv)
In financial Retrieval-Augmented Generation (RAG) systems, models frequently rely on retrieved documents to generate accurate responses due to the time-sensitive nature of the financial domain. While retrieved documents help address knowledge gaps, model-generated responses still suffer from hallucinations that contradict the retrieved information. To mitigate this inconsistency, we propose a Reinforcement Learning framework enhanced with Fine-grained Knowledge Verification (RLFKV). Our method decomposes financial responses into atomic knowledge units and assesses the correctness of each unit to compute the fine-grained faithful reward. This reward offers more precise optimization signals, thereby improving alignment with the retrieved documents. Additionally, to prevent reward hacking (e.g., overly concise replies), we incorporate an informativeness reward that encourages the policy model to retain at least as many knowledge units as the base model. Experiments conducted on the public Financial Data Description (FDD) task and our newly proposed FDD-ANT dataset demonstrate consistent improvements, confirming the effectiveness of our approach.
Key facts. Cited by 1 paper in the map (data through 7 Oct 2026). Placed in Legal and financial RAG, one of 15 directions in Retrieval-augmented generation. Builds on 21 of its 25 references that are in the map. First posted on arXiv 5 Feb 2026.
Builds on
21 of 25 references.
References · 21
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9 more
- 2023XuanYuan 2.0: A Large Chinese Financial Chat Model with Hundreds of Billions Parameterscited by 92
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- 2025VERAFI: Verified Agentic Financial Intelligence through Neurosymbolic Policy Generation
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- 2026Fighting Numerical Hallucinations via Data-centric Compilation for Online Financial QA
- 2023Deficiency of Large Language Models in Finance: An Empirical Examination of Hallucination