FinRAG-12B: A Production-Validated Recipe for Grounded Question Answering in Banking
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Abstract (arXiv)
Large language models (LLMs) are rapidly being adopted across various domains. However, their adoption in banking industry faces resistance due to demands for high accuracy, regulatory compliance, and the need for verifiable and grounded responses. We present a unified, data-efficient framework for training grounded domain-specific LLMs that optimizes answer quality, citation grounding, and calibrated refusal under real-world deployment constraints. First, we describe a data generation pipeline that combines LLM-as-a-Judge filtering, citation annotation, and curriculum learning with only 143M tokens. The resulting 12B model achieves high answer quality outperforming GPT-4.1 on citation grounding, with a modest citation tradeoff versus the untuned base. Second, we propose a calibrated refusal mechanism: training on 22% unanswerable examples yield a 12% "I don't know" rate, substantially improving over the base model's unsafe 4.3% rate while avoiding GPT-4.1's over-refusal (20.2%). Third, we present an end-to-end methodology spanning from data curation to quantized serving. The system is deployed at 40+ financial institutions, achieving a 7.1 percentage point improvement in query resolution (p < 0.001). Additionally, the model delivers 3-5x faster responses at 20-50x lower cost compared to GPT-4.1.
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References · 13
- 2020Retrieval-Augmented Generation for Knowledge-Intensive NLP Taskscited by 9,160
- 2023Lost in the Middle: How Language Models Use Long Contextscited by 3,383
- 2020Don't Stop Pretraining: Adapt Language Models to Domains and Taskscited by 1,548
- 2023LIMA: Less Is More for Alignmentcited by 1,080
- 2023BloombergGPT: A Large Language Model for Financecited by 923
- 2023Large Language Modelscited by 774
- 2023Textbooks Are All You Needcited by 561
- 2021FinQA: A Dataset of Numerical Reasoning over Financial Datacited by 552
- 2024LESS: Selecting Influential Data for Targeted Instruction Tuningcited by 514
- 2019FinBERT: Financial Sentiment Analysis with Pre-trained Language Modelscited by 378
- 2023FinanceBench: A New Benchmark for Financial Question Answeringcited by 261
- 2024Data Mixing Laws: Optimizing Data Mixtures by Predicting Language Modeling Performancecited by 179
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