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Enhancing the Efficiency and Accuracy of Underlying Asset Reviews in Structured Finance: The Application of Multi-agent Framework

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arxiv 2405.04294 v1 pith:ZJA54I5H submitted 2024-05-07 cs.AI

classification cs.AI
keywords accuracyefficiencyfinancemodelsstructuredapplicationassetclose-sourced
verification ladder T0 review T1 audit T2 compute T3 formal
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Structured finance, which involves restructuring diverse assets into securities like MBS, ABS, and CDOs, enhances capital market efficiency but presents significant due diligence challenges. This study explores the integration of artificial intelligence (AI) with traditional asset review processes to improve efficiency and accuracy in structured finance. Using both open-sourced and close-sourced large language models (LLMs), we demonstrate that AI can automate the verification of information between loan applications and bank statements effectively. While close-sourced models such as GPT-4 show superior performance, open-sourced models like LLAMA3 offer a cost-effective alternative. Dual-agent systems further increase accuracy, though this comes with higher operational costs. This research highlights AI's potential to minimize manual errors and streamline due diligence, suggesting a broader application of AI in financial document analysis and risk management.

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  1. Agentic AI Systems Applied to tasks in Financial Services: Modeling and model risk management crews

    cs.AI 2025-02 conditional novelty 4.0 of 10

    A CrewAI-based multi-agent system with human oversight built financial models and carried out model risk management checks on three public credit datasets, with results comparable to AutoML and Kaggle baselines.

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