An Early Warning System for Fintech Supervision

Policy Paper

Fintech Regulation

Python

A lightweight early-warning prototype for fintech supervision that continuously scans open online sources to detect risk signals.

Author

Affiliation

Alfredo Hernández Sánchez

Vilnius University

Published

October 14, 2025

Doi

https://doi.org/10.5281/zenodo.17348782

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

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