Hybrid Graph Neural Networks and Transformer Models for Regulatory Data Lineage in Banking

Regulatory compliance in the banking sector increasingly depends on transparent and auditable data lineage across complex financial systems. Traditional rule-based and relational approaches often fail to capture the dynamic, heterogeneous, and high-dimensional nature of regulatory data flows. This study introduces a hybrid framework that integrates Graph Neural Networks (GNNs) with Transformer models to address these challenges. GNNs are leveraged to model relational structures within financial data ecosystems, capturing entity-level dependencies and transaction-level connectivity, while Transformers provide contextual representation learning for sequential and textual regulatory metadata. The hybrid architecture enables scalable lineage tracing, anomaly detection, and regulatory reporting with higher precision and explainability. Experimental results on synthetic and real-world banking datasets demonstrate significant improvements in lineage accuracy, compliance monitoring efficiency, and interpretability compared to baseline methods. The findings highlight the potential of combining graph-based learning with attention-driven architectures to meet evolving regulatory requirements, enhance data governance, and strengthen trust in financial decision-making processes.

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Publication Details

Journal
Journal of Artificial Intelligence General science (JAIGS) ISSN 3006-4023
Published
2024-09-30
DOI
https://doi.org/10.60087/jaigs.v6i1.409
Primary Topic
Blockchain Technology Applications and Security
Type
article
Field-Weighted Citation Impact
0.00
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article

Hybrid Graph Neural Networks and Transformer Models for Regulatory Data Lineage in Banking

Karthick Mani, Madhumita Panda, Prabhu Muthusamy
Journal of Artificial Intelligence General science (JAIGS) ISSN 3006-4023
Blockchain Technology Applications and Security
article

Hybrid Graph Neural Networks and Transformer Models for Regulatory Data Lineage in Banking

Karthick Mani, Madhumita Panda, Prabhu Muthusamy
article en

Abstract

Regulatory compliance in the banking sector increasingly depends on transparent and auditable data lineage across complex financial systems. Traditional rule-based and relational approaches often fail to capture the dynamic, heterogeneous, and high-dimensional nature of regulatory data flows. This study introduces a hybrid framework that integrates Graph Neural Networks (GNNs) with Transformer models to address these challenges. GNNs are leveraged to model relational structures within financial data ecosystems, capturing entity-level dependencies and transaction-level connectivity, while Transformers provide contextual representation learning for sequential and textual regulatory metadata. The hybrid architecture enables scalable lineage tracing, anomaly detection, and regulatory reporting with higher precision and explainability. Experimental results on synthetic and real-world banking datasets demonstrate significant improvements in lineage accuracy, compliance monitoring efficiency, and interpretability compared to baseline methods. The findings highlight the potential of combining graph-based learning with attention-driven architectures to meet evolving regulatory requirements, enhance data governance, and strengthen trust in financial decision-making processes.

Journal of Artificial Intelligence General science (JAIGS) ISSN 3006-4023Vol. 6(1)
Cognizant (United States) (US), Richard Wolf (Germany) (DE), Wipro (Singapore) (SG)
Openalex Percentile: Top 49%
Blockchain Technology Applications and Security
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