Open Arsenal

From Lending Idea to Compliance Framework

FinAxis is an open source, modular specification for building AI and LLM-powered regulatory intelligence systems for lending and financial businesses. It is designed to help an upstart financial business understand the complex legal and regulatory requirements that may apply before launching a lending product. FinAxis examines the proposed business model, lending product, borrower type, transaction characteristics, and jurisdictions involved to identify potentially applicable federal, state, and local requirements.

FinAxis is designed around specialized modules covering the major areas of lending. These include consumer lending, personal lending, business and commercial lending, mortgage and real estate lending, small-dollar lending, secured and unsecured lending, lines of credit, equipment financing, invoice financing, factoring, merchant cash advances, revenue-based financing, and other lending models. The specification also provides modules for licensing, interest rates and usury, fees, disclosures, forms, advertising, underwriting, servicing, collections, privacy, recordkeeping, and compliance management.

A central feature of FinAxis is its jurisdiction and regulatory intelligence architecture. The system is designed to distinguish federal statutes and regulations from state laws, regulations, agency guidance, enforcement actions, and other regulatory sources. It can map a lending business and its proposed products to applicable jurisdictions, licensing requirements, exemptions, restrictions, disclosures, compliance obligations, and regulatory deadlines. Source provenance, effective dates, compliance dates, version tracking, and regulatory-change monitoring are incorporated into the architecture so that an AI system can provide traceable and current regulatory information rather than relying solely on its underlying model knowledge.

FinAxis also provides advisory capabilities for personal lending, including loan affordability, borrowing costs, payment analysis, loan comparisons, debt-consolidation considerations, and personal-loan risk identification. For financial businesses, the specification provides structured compliance workflows that can progress from a lending idea through product classification, jurisdiction analysis, licensing, pricing, disclosures, underwriting, servicing, collections, recordkeeping, and ongoing monitoring. Human-in-the-loop review and escalation are built into the design for situations requiring qualified legal or compliance professionals.

This specification is released under AGPL-3.0+ and is free to use with required Section 7 attribution. Attribution-free deployment is available through a Specification Branding License, with fees based on deployment scope and network size.