---
license: apache-2.0
language:
- en
# append to front-matter
library_name: transformers
model_type: distilbert
tags:
  - finance
  - reconciliation
  - distilbert
---

# DistilBERT-Reconciler (v1)

Fine-tuned **DistilBERT** on 3.2 M labelled *post-trade break* descriptions +
resolution actions (ISO 20022 & proprietary logs).

| split | accuracy | micro-F1 | macro-F1 |
|-------|----------|----------|----------|
| hold-out (20 %) | **0.88** | **0.88** | **0.85** |

![DistilBERT-Reconciler: end-to-end training & inference pipeline, showing fine-tuning loop (dashed) and production-time text-to-root-cause flow.](distilbert_reconciler_compact.png)
*Figure 1 – DistilBERT-Reconciler: end-to-end training & inference pipeline, showing fine-tuning loop (dashed) and production-time text-to-root-cause flow.*

## Intended use

Automated classification of reconciliation exceptions in fixed-income
settlement workflows (CUSIP/ISIN). Produces `label_id` then mapped to human
root-cause & recommended next action. *Not for retail investment advice.*

Not for retail investment advice.

## Training details
* **Base** : `distilbert-base-uncased`
* **Epochs** : 4 • lr = 3e-5 • max_len = 256  
* **Hardware** : 2× A100 40 GB
* **Loss curve & confusion matrix** : see `/training_artifacts/`.

### Usage
```python
from transformers import AutoTokenizer, AutoModelForSequenceClassification
tok = AutoTokenizer.from_pretrained("kelvi23/DistilBERT-Reconciler")
mdl = AutoModelForSequenceClassification.from_pretrained("kelvi23/DistilBERT-Reconciler")

text = "COAF: partial collateral received awaiting tri-party"
inputs = tok(text, return_tensors="pt")
pred  = mdl(**inputs).logits.argmax(-1).item()
```

## Limitations & bias

Labels derived from North-American corporate-bond desks (2019–2025). May
under-perform on equities or non-USD/CAD repos without re-training.

## Citation

> Musodza, K. (2025). Bond Settlement Automated Exception Handling and Reconciliation. Zenodo. https://doi.org/10.5281/zenodo.16828730
> 
> ➡️  Technical white-paper & notebooks: https://github.com/Coreledger-tech/Exception-handling-reconciliation.git