Financial Software and Systems (FSS) became first payments company in India, the Middle East, APAC and South Africa to receive ISO/IEC 42001 Certification, marking a major milestone in ethical and responsible Artificial Intelligence (AI) governance in the financial services sector.
Key Highlights
- First-mover achievement: FSS is the first payments company to comply with ISO/IEC 42001, the global standard for AI Management Systems.
- Enterprise-wide AI governance: The certification signifies a shift from ad-hoc AI usage to a structured, organisation-wide AI governance framework.
- Core business priority: AI governance is now placed alongside information security and quality management as a core organisational function.
- Independent assessment: FSS’s AI governance framework has been certified by TÜV SÜD, a globally recognised certification and assurance body.
- Certification Lead status: Reflects higher organisational maturity and FSS’s ability to lead enterprise-scale implementation of the standard.
What is ISO/IEC 42001?
- ISO/IEC 42001 is the world’s first international standard for Artificial Intelligence Management Systems (AIMS).
- It provides a systematic framework to:
- Govern AI responsibly
- Ensure accountability and transparency
- Manage AI-specific risks such as bias, explainability gaps, unintended outcomes and regulatory non-compliance
Why is it Different from Traditional IT Standards?
- Unlike ISO 27001 (Information Security) or ISO 9001 (Quality Management), ISO/IEC 42001:
- Establishes clear ownership of AI systems
- Mandates defined AI governance structures
- Requires continuous monitoring of AI performance post-deployment
- Focuses on fairness, explainability and accountability, which are critical in financial services
Why ISO/IEC 42001 Matters for Financial Services
- AI systems increasingly power fraud detection, transaction monitoring, dispute management and automation.
- Traditional IT frameworks do not fully address AI-specific risks.
- Regulators are placing growing emphasis on ethical and responsible AI, including:
- EU AI Act
- Reserve Bank of India’s (RBI) guidance on responsible AI
- Early adoption positions FSS ahead of regulatory expectations globally.
AI Use-Cases at FSS
AI is deeply embedded across FSS platforms, supporting:
- Fraud detection and prevention
- Transaction monitoring
- Reconciliation processes
- Dispute management
- Operational automation
Under the ISO/IEC 42001-aligned framework:
- AI systems are continuously monitored
- Risks such as bias, unfair outcomes and explainability gaps are proactively assessed
- Compliance with evolving regulations is ensured
Significance of Certification
For FSS
- Demonstrates leadership in responsible AI adoption
- Enhances trust among banks, fintechs and regulators
- Strengthens global competitiveness in payments technology
For India’s FinTech Ecosystem
- Sets a benchmark for AI governance in payments and banking
- Supports India’s push towards trust-based digital finance
- Aligns with India’s broader focus on ethical AI and digital public infrastructure
About Financial Software and Systems (FSS)
- Founded: India-based global payments technology company
- Presence: Operations in 25+ countries
- Core offerings:
- Card issuance & merchant acquiring
- Real-time payments
- Secure 3D authentication
- Reconciliation & dispute management
- Digital transformation platforms for banks and fintechs
- Role: Enables secure, scalable and seamless payment experiences worldwide