FSS Becomes the First Payments Company in India, ME, APAC & SA to Achieve ISO IEC 42001 Certification

Financial Software and Systems (FSS) 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, reinforcing its leadership in responsible and ethical use of artificial intelligence (AI) in payments and banking technology.

By achieving ISO IEC 42001 Certification, FSS signals a shift from ad-hoc AI usage to a structured, enterprise-wide AI governance model, positioning AI governance alongside information security and quality management as a core business priority.

AI is deeply embedded across FSS’s platforms, supporting use cases such as fraud detection, transaction monitoring, reconciliation, dispute management, and operational automation. By aligning with ISO IEC 42001, FSS has implemented structured oversight across the entire AI lifecycle, ensuring that AI systems are continuously monitored after deployment and assessed for risks such as bias, unintended outcomes, and regulatory non-compliance.

ISO/IEC 42001 represents a significant evolution in how organizations govern AI, moving beyond ad-hoc adoption to a structured, organization-wide AI governance framework. By aligning its AI systems with this standard, FSS has embedded governance, accountability, and risk management across the entire AI lifecycle, placing AI governance alongside information security and quality management as a core business discipline.

AI is deeply embedded across FSS platforms, supporting critical use cases such as fraud detection, transaction monitoring, reconciliation, dispute management, and operational automation. Through its ISO/IEC 42001 aligned framework, FSS ensures that AI systems are continuously monitored post-deployment and proactively assessed for risks including bias, unintended outcomes, explainability gaps, and regulatory non-compliance.

The standard is particularly relevant for financial services, where traditional IT and information security frameworks do not fully address AI-specific risks, including fairness, explainability, and accountability. ISO IEC 42001 establishes clear ownership of AI systems, defined governance structures, and ongoing performance monitoring: safeguards that are increasingly expected by regulators and customers alike.

V Balasubramanian, CEO, Financial Software and Systems (FSS), said, “AI is increasingly shaping real-time decisions in payments, from fraud prevention to risk management. As AI becomes core infrastructure, governance becomes non-negotiable. 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.”

ISO IEC 42001 is a new and globally evolving standard, and only a limited number of organisations currently meet its stringent requirements. Early adoption places FSS ahead of the curve as global regulatory frameworks, including the EU AI Act, and the Reserve Bank of India’s emphasis on ethical and responsible AI, begin to shape how AI is governed in financial services.

FSS’s AI governance framework has been independently assessed by TÜV SÜD, a globally recognised certification and assurance body. The Certification Lead status reflects a higher level of maturity, recognising FSS’s ability to not only adopt the standard but also lead its implementation at an enterprise scale.