Financial Named Entity Recognition: How Far Can LLM Go?

Yi-Te Lu, Yintong Huo


Abstract
The surge of large language models (LLMs) has revolutionized the extraction and analysis of crucial information from a growing volume of financial statements, announcements, and business news. Recognition for named entities to construct structured data poses a significant challenge in analyzing financial documents and is a foundational task for intelligent financial analytics. However, how effective are these generic LLMs and their performance under various prompts are yet need a better understanding. To fill in the blank, we present a systematic evaluation of state-of-the-art LLMs and prompting methods in the financial Named Entity Recognition (NER) problem. Specifically, our experimental results highlight their strengths and limitations, identify five representative failure types, and provide insights into their potential and challenges for domain-specific tasks.
Anthology ID:
2025.finnlp-1.15
Volume:
Proceedings of the Joint Workshop of the 9th Financial Technology and Natural Language Processing (FinNLP), the 6th Financial Narrative Processing (FNP), and the 1st Workshop on Large Language Models for Finance and Legal (LLMFinLegal)
Month:
January
Year:
2025
Address:
Abu Dhabi, UAE
Editors:
Chung-Chi Chen, Antonio Moreno-Sandoval, Jimin Huang, Qianqian Xie, Sophia Ananiadou, Hsin-Hsi Chen
Venues:
FinNLP | WS
SIG:
Publisher:
Association for Computational Linguistics
Note:
Pages:
164–168
Language:
URL:
https://aclanthology.org/2025.finnlp-1.15/
DOI:
Bibkey:
Cite (ACL):
Yi-Te Lu and Yintong Huo. 2025. Financial Named Entity Recognition: How Far Can LLM Go?. In Proceedings of the Joint Workshop of the 9th Financial Technology and Natural Language Processing (FinNLP), the 6th Financial Narrative Processing (FNP), and the 1st Workshop on Large Language Models for Finance and Legal (LLMFinLegal), pages 164–168, Abu Dhabi, UAE. Association for Computational Linguistics.
Cite (Informal):
Financial Named Entity Recognition: How Far Can LLM Go? (Lu & Huo, FinNLP 2025)
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PDF:
https://aclanthology.org/2025.finnlp-1.15.pdf