FSS Achieves ISO IEC 42001 Certification Lead Status

Financial Software and Systems (FSS), a global leader in payments technology and transaction processing, has become the first payments company in India, the Middle East, APAC, and South Africa to be certified as an ISO/IEC 42001 Certification Lead. The milestone reinforces FSS’s leadership in responsible, ethical, and regulated use of artificial intelligence in payments and banking technology.

Shift Towards Structured AI Governance

By achieving ISO/IEC 42001 certification, FSS has transitioned from ad-hoc AI adoption to a structured, enterprise-wide AI governance framework. The certification places AI governance on par with information security and quality management as a core business priority. It establishes clear accountability, defined governance structures, and continuous performance monitoring across the entire AI lifecycle.

AI Integration Across Payment Platforms

AI is deeply embedded across FSS platforms, supporting critical use cases such as fraud detection, transaction monitoring, reconciliation, dispute management, and operational automation. Under the ISO/IEC 42001-aligned framework, AI systems are continuously monitored post-deployment and proactively assessed for risks including bias, unintended outcomes, explainability gaps, and regulatory non-compliance. This approach is particularly relevant for financial services, where traditional IT frameworks do not fully address AI-specific risks.

Relevance for Financial Regulation and Trust

ISO/IEC 42001 represents a major evolution in AI governance, moving beyond experimental usage to organisation-wide oversight. The standard addresses concerns around fairness, transparency, and accountability, which are increasingly emphasised by regulators and customers. Early adoption positions FSS ahead of emerging global regulatory frameworks such as the EU AI Act and aligns with the Reserve Bank of India’s emphasis on ethical and responsible AI adoption in financial systems.

Imporatnt Facts for Exams

• ISO/IEC 42001 is a global standard for AI management systems.
• The standard focuses on AI governance, accountability, and risk management.
• AI risks include bias, explainability issues, and regulatory non-compliance.
• Ethical AI governance is increasingly mandated in financial services.

Leadership Perspective and Certification Assessment

V Balasubramanian, CEO of Financial Software and Systems, stated that as AI increasingly drives real-time decisions in payments, governance has become non-negotiable. The certification highlights FSS’s commitment to building AI systems that are powerful, trustworthy, and accountable. The company’s AI governance framework was independently assessed by TUV SUD, with Certification Lead status recognising FSS’s maturity and ability to implement the standard at enterprise scale across its global operations.