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

Xiangpeng Wan, Haicheng Deng, Kai Zou, Shiqi Xu
5/7/2024
cs.AI

No official code found. Best implementation: elricwan/Audit (3 stars, Apache-2.0, last commit 2024-05-08).

Abstract

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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Code Implementations(1)

elricwan/AuditCommunity100%
Apache-2.0
34HTML, PythonApr 18, 20242 years agoApache-2.0

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Cite this paper

@article{wan2024enhancing,
  title  = {Enhancing the Efficiency and Accuracy of Underlying Asset Reviews in Structured Finance: The Application of Multi-agent Framework},
  author = {Xiangpeng Wan and Haicheng Deng and Kai Zou and Shiqi Xu},
  year   = {2024},
  eprint = {2405.04294},
  archivePrefix = {arXiv},
  url    = {http://arxiv.org/abs/2405.04294v1}
}

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