Enhancing Foundation Models in Transaction Understanding with LLM-based Sentence Embeddings
arXiv:2601.05271v1 Announce Type: new Abstract: The ubiquity of payment networks generates vast transactional data encoding rich consumer and merchant behavioral patterns. Recent foundation models for transaction analysis process tabular data sequentially but rely on index-based representations for categorical merchant fields, causing substantial semantic information loss by converting rich textual data into discrete tokens. While Large Language Models (LLMs) can address this limitation through superior semantic understanding, their computational overhead challenges real-time financial deployment. We introduce a hybrid framework […]