FinRAG-12B: A Production-Validated Recipe for Grounded Question Answering in Banking
This study addresses the challenges of accuracy, regulatory compliance, and verifiability in deploying large language models (LLMs) within the banking sector by proposing a data-efficient, end-to-end framework. The framework integrates LLM-as-a-Judge filtering, citation annotation, curriculum learning, and a calibrated rejection mechanism, while supporting quantized deployment across the entire pipeline—from data construction to efficient inference. A domain-specific model trained on only 143 million tokens surpasses GPT-4.1 in citation accuracy and demonstrates substantially improved rejection behavior on unanswerable queries. Deployed across more than 40 financial institutions, the system increases query resolution rates by 7.1 percentage points (p<0.001), accelerates response times by 3–5×, and reduces inference costs by 20–50×.