Financial Software and Systems (FSS) has made a significant move in the payments technology sector. The company has become the first payments firm in India, the Middle East, APAC, and South Africa to achieve ISO IEC 42001 certification. This certification highlights FSS's strong focus on responsible and ethical use of artificial intelligence in payments and banking technology.
Structured AI Governance Takes Center Stage
By securing the ISO IEC 42001 certification, FSS signals a clear shift. The company is moving away from ad-hoc AI usage towards a structured, enterprise-wide AI governance model. This positions AI governance alongside information security and quality management as a core business priority for the organization.
AI Embedded Across Platforms
AI technology is deeply embedded across FSS's various platforms. It supports critical use cases such as fraud detection, transaction monitoring, reconciliation, dispute management, and operational automation. The alignment with ISO IEC 42001 ensures structured oversight across the entire AI lifecycle.
This means AI systems are actively monitored after deployment. They are also assessed for potential risks including bias, unintended outcomes, and regulatory non-compliance. The standard represents an evolution in how organizations govern AI, moving beyond piecemeal adoption to a comprehensive framework.
Addressing Financial Sector Risks
The ISO IEC 42001 standard is particularly relevant for financial services. Traditional IT and information security frameworks often do not fully address AI-specific risks. These risks include issues of fairness, explainability, and accountability.
ISO IEC 42001 establishes clear ownership of AI systems. It defines governance structures and mandates ongoing performance monitoring. These safeguards are increasingly expected by both regulators and customers in the financial industry.
Leadership Perspective on AI Governance
V Balasubramanian, CEO of Financial Software and Systems (FSS), shared his thoughts on this development. He stated, "AI is increasingly shaping real-time decisions in payments, from fraud prevention to risk management. As AI becomes core infrastructure, governance becomes non-negotiable."
Balasubramanian further explained, "In today's world, not being compliant has a risk associated with it because of the way AI is changing payments. This certification underscores our commitment to building AI systems that are not just powerful, but also trustworthy, explainable, and accountable."
Early Adoption in a Global Context
ISO IEC 42001 is a new and globally evolving standard. Currently, only a limited number of organizations meet its stringent requirements. Early adoption places FSS among the pioneering implementers as global regulatory frameworks begin to take shape.
These frameworks include the EU AI Act and the Reserve Bank of India's emphasis on ethical and responsible AI. They are starting to define how AI should be governed within financial services worldwide.
Independent Assessment and Organizational Maturity
FSS's AI governance framework underwent independent assessment by TÜV SÜD, a respected certification and assurance body. The Certification Lead status reflects a higher level of organizational maturity.
This recognition acknowledges FSS's ability not only to adopt the standard but also to support its implementation at an enterprise scale. It demonstrates the company's commitment to robust AI governance practices across its operations.
