Description

This working paper presents a lightweight early-warning prototype for fintech supervision that continuously scans open online sources to detect emerging firms, products, and risk signals. Using named-entity recognition, keyword-based risk scoring, zero-shot topic classification, and FinBERT sentiment, the pipeline transforms unstructured text into triage-ready entries that support proactive outreach by innovation hubs and sandbox teams. We outline expected benefits, risks, and governance considerations, and provide a reproducible prototype that can evolve into a dashboard for live monitoring and supervisor feedback.

A live version of the prototype can be found in this Google Colab.

Key Figure(s)

Figure 1. Flowchart of the proposed solution.

Full Text

Citation

Hernandez Sanchez, A. (2025). An Early Warning System for Fintech Supervision. In FIRSA Working Papers (No. 2025/01). TSMPI. https://doi.org/10.5281/zenodo.17348782