README.md

metadata

language:
  - it
  - en
license: apache-2.0
library_name: transformers
base_model: Qwen/Qwen2.5-32B-Instruct
tags:
  - lora
  - fine-tuned
  - banking
  - regtech
  - compliance
  - rag
  - tool-calling
  - italian
  - qwen2.5
pipeline_tag: text-generation

🏦 RegTech-32B-Instruct

Fine-tuned for RAG-powered banking compliance — not general knowledge.

A specialized Qwen2.5-32B-Instruct model fine-tuned to excel within a Retrieval-Augmented Generation (RAG) pipeline for Italian banking regulatory compliance.

This model doesn't try to memorize regulations — it's trained to work with retrieved context: follow instructions precisely, produce structured outputs, call compliance tools, and maintain the right tone and terminology when grounded on regulatory documents.

---

🎯 What This Model Does

This fine-tuning optimizes the model's behavior within a RAG system, not its factual knowledge. Specifically:

Task	Description
📋 RAG Q&A	Answer regulatory questions grounded on retrieved documents
🔧 Tool Calling	KYC verification, risk scoring, PEP checks, SOS reporting
🔍 Query Expansion	Rewrite user queries with regulatory terminology for better retrieval
🧠 Intent Detection	Classify if a message needs document search or is conversational
📊 Document Reranking	Score candidate documents by relevance
📝 Structured JSON	Topic extraction, metadata, impact analysis in JSON format
⚖️ Impact Analysis	Cross-reference external regulations against internal bank procedures

---

📈 Evaluation — LLM-as-Judge

Evaluated by Claude Opus 4.6 (Anthropic) across 11 blind test scenarios. The judge compared base vs fine-tuned model outputs without knowing which was which.

🏆 Head-to-Head

┌─────────────────────────────────────────┐
│  🟢 Tuned Wins    7/11    (68.2%)       │
│  🔴 Base Wins     3/11    (31.8%)       │
│  ⚪ Ties          1/11                   │
└─────────────────────────────────────────┘

📊 Quality Scores (1–5)

Criterion	Base	Tuned	Delta
🎯 Instruction Following	4.00	4.82	+0.82	🟢🟢🟢
📎 Context Adherence	4.36	4.91	+0.55	🟢🟢
✅ Accuracy	4.27	4.73	+0.46	🟢
📐 Format	4.36	4.55	+0.19	➖
🗣️ Tone	4.82	5.00	+0.18	➖
📊 Overall	4.36	4.80	+0.44	🟢

The biggest gains are in instruction following (+0.82) and context adherence (+0.55) — exactly what matters when the model must follow retrieved regulatory context faithfully. Tone reaches a perfect 5.00.

📂 Results by Category

Category	Base	Tuned	Tie
🚫 Refusal Handling	0	1	1
🎨 Style & Tone	0	1	0
📤 Data Extraction	0	1	0
⚠️ Edge Cases	0	1	0
📋 JSON Output	1	1	0
📖 RAG Q&A	1	1	0
🔧 Tool Use	1	1	0

🔄 Comparison with RegTech-4B-Instruct

Metric	4B	32B
Base score (pre-tuning)	4.11	4.36
Tuned score	4.68	4.80
Best eval loss	1.191	0.813
Token accuracy	~73%	~81%
Train/eval gap	0.050	0.030

---

💡 Usage Examples

📋 RAG Q&A — Answering from Retrieved Context

The model is designed to receive retrieved regulatory documents as context and answer based on them:

messages = [
    {
        "role": "system",
        "content": """Sei un assistente per la compliance bancaria. 
Rispondi SOLO basandoti sul contesto fornito.

<contesto_recuperato>
Art. 92 CRR - Gli enti soddisfano in qualsiasi momento i seguenti 
requisiti: a) CET1 del 4,5%; b) Tier 1 del 6%; c) capitale totale dell'8%.
Il coefficiente è calcolato come rapporto tra i fondi propri e 
l'importo complessivo dell'esposizione al rischio.
</contesto_recuperato>"""
    },
    {
        "role": "user", 
        "content": "Quali sono i requisiti minimi di capitale secondo il CRR?"
    }
]

🔍 Query Expansion — Improving RAG Retrieval

messages = [
    {
        "role": "system",
        "content": "Riscrivi la query dell'utente in una versione più ricca per migliorare il recupero documentale (RAG). Aggiungi termini tecnici e riferimenti normativi. Rispondi SOLO con il JSON richiesto."
    },
    {
        "role": "user",
        "content": "## QUERY ORIGINALE: [obblighi segnalazione operazioni sospette]"
    }
]

# Expected output:
# {"query": "obblighi segnalazione operazioni sospette SOS UIF D.Lgs. 231/2007 
#   art. 35 riciclaggio finanziamento terrorismo portale RADAR tempistiche 
#   invio indicatori anomalia"}

🔧 Tool Calling — Compliance Workflows

messages = [
    {
        "role": "system",
        "content": """Sei un assistente operativo per la compliance.
        
<tools>
{"name": "calcola_scoring_rischio", "parameters": {...}}
{"name": "controlla_liste_pep", "parameters": {...}}
{"name": "verifica_kyc", "parameters": {...}}
</tools>

<contesto_recuperato>
Procedura AML-003: L'adeguata verifica rafforzata (EDD) deve essere 
applicata per PEP, paesi ad alto rischio e profili con scoring > 60.
</contesto_recuperato>"""
    },
    {
        "role": "user",
        "content": "Devo aprire un conto per una società con sede a Dubai. Il legale rappresentante è il sig. Al-Rashid."
    }
]

# The model will:
# 1. Call controlla_liste_pep for the representative
# 2. Call calcola_scoring_rischio based on risk factors  
# 3. Recommend EDD procedure per AML-003, grounded on retrieved policy

📊 Document Reranking

messages = [
    {
        "role": "system",
        "content": "Valuta la rilevanza di ciascun candidato rispetto alla query. Restituisci solo i candidati rilevanti con score 0-100. Rispondi SOLO con il JSON richiesto."
    },
    {
        "role": "user",
        "content": '{"query": "requisiti CET1 fondi propri", "candidates": [{"id": "doc_001", "title": "Art. 92 CRR", "content": "..."}, {"id": "doc_002", "title": "DORA Art. 5", "content": "..."}]}'
    }
]

# Expected: {"matches": [{"id": "doc_001", "relevance": 95}]}

---

⚙️ Training Details

🧬 Method	LoRA — bf16 full precision (no quantization)
🏗️ Base Model	Qwen2.5-32B-Instruct
📦 Dataset	923 train / 102 eval samples
⏱️ Duration	40.0 minutes

📉 Training Metrics

Metric	Value
Final Train Loss	0.843
Best Eval Loss	0.813 (step 640/693)
Train/Eval Gap	0.030 ✅

Gap of 0.030 indicates very stable training with no overfitting.

---

📚 Dataset Coverage

The training data covers the full lifecycle of a RAG-based compliance assistant:

Category	Purpose
🏷️ Title Generation	Generate conversation titles from user queries
🔍 Query Expansion	Enrich queries with regulatory terms for better retrieval
🧠 Intent Classification	Route queries to RAG vs conversational responses
📊 Document Reranking	Score retrieved documents by relevance
📝 Topic Extraction	Extract main topics from regulatory text pages
📖 Document Summarization	Summarize multi-page regulatory documents
⚖️ Relevance Filtering	Filter regulatory text relevant to banks
📅 Metadata Extraction	Find application dates, issuing authorities
🔧 Impact Analysis	Cross-reference regulations vs internal procedures
💬 RAG Q&A + Tool Calling	Multi-turn compliance conversations with tools

Regulatory sources covered: CRR/CRR3, DORA (UE 2022/2554), D.Lgs. 231/2007 (AML), D.Lgs. 385/1993 (TUB), Circolare 285, PSD2, MiFID II/MiFIR, D.P.R. 180/1950 and related Banca d'Italia provisions.

---

🚀 Deployment

With vLLM

vllm serve ./models/RegTech-32B-Instruct --dtype bfloat16

With Transformers

from transformers import AutoModelForCausalLM, AutoTokenizer

model = AutoModelForCausalLM.from_pretrained("YOUR_REPO_ID", torch_dtype="bfloat16", device_map="auto")
tokenizer = AutoTokenizer.from_pretrained("YOUR_REPO_ID")

text = tokenizer.apply_chat_template(messages, tokenize=False, add_generation_prompt=True)
inputs = tokenizer(text, return_tensors="pt").to(model.device)
outputs = model.generate(**inputs, max_new_tokens=512)
print(tokenizer.decode(outputs[0], skip_special_tokens=True))

---

⚠️ Important Notes

• 🎯 RAG-optimized — trained to work with retrieved context, not to memorize regulations. Always provide relevant documents in the system prompt.
• 🏦 Domain-specific — optimized for Italian banking compliance. General capabilities may differ from the base model.
• ⚖️ Not legal advice — a tool to assist compliance professionals, not a substitute for regulatory expertise.
• 🔧 Tool schemas — tool calling works best with the specific function signatures used during training.

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Built with ❤️ for banking RAG
Fine-tuned with LoRA • Evaluated by Claude Opus 4.6 • Powered by Qwen2.5
Contact For Commercial Use: https://landing.2sophia.ai