FSS Becomes First Payments Firm to Achieve ISO-IEC 42001 AI Certification

ISO/IEC 42001 Milestone: FSS Sets Benchmark for Ethical AI in Payments

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 , marking a major milestone in responsible artificial intelligence adoption. The achievement reinforces FSS’s leadership in ethical, regulated, and enterprise-grade use of AI across payments and banking technology.

Shift Towards Structured AI Governance

With ISO/IEC 42001 certification, FSS has moved from fragmented or use-case-driven AI deployment to a structured, organisation-wide AI management framework . The certification elevates AI governance to the same strategic level as information security and quality management. It mandates clear accountability, defined governance roles, documented controls, and continuous performance monitoring throughout the AI lifecycle—from design and deployment to post-production oversight.

AI Integration Across Payment Platforms

AI is embedded across FSS platforms to support mission-critical functions such as fraud detection, transaction monitoring, reconciliation, dispute management, and operational automation . Under the ISO/IEC 42001-aligned framework, AI systems are continuously evaluated after deployment and proactively assessed for risks including algorithmic bias, unintended outcomes, explainability gaps, and regulatory non-compliance . This is particularly important in financial services, where traditional IT governance frameworks are insufficient to address AI-specific risks.

Strengthening Regulation, Trust, and Compliance

ISO/IEC 42001 represents a global shift from experimental AI use to formal, enterprise-level oversight . The standard focuses on fairness, transparency, accountability, and risk management—areas increasingly emphasised by regulators and customers alike. Early adoption places FSS ahead of emerging regulatory regimes such as the EU AI Act and aligns with the Reserve Bank of India ’s emphasis on ethical and responsible AI use in financial systems.

Leadership Perspective and Independent Assessment

Commenting on the milestone, V Balasubramanian , CEO of FSS, said that as AI increasingly drives real-time decisions in payments, governance is no longer optional. The certification reflects FSS’s commitment to building AI systems that are powerful yet trustworthy. The company’s AI governance framework was independently assessed by TÜV SÜD , with Certification Lead status recognising FSS’s maturity and ability to implement the standard at scale across global operations.

Important Facts for Exams

• ISO/IEC 42001 is a global standard for AI management systems

• The standard focuses on AI governance, accountability, and risk management

• Key AI risks include bias, explainability gaps, and regulatory non-compliance

• Ethical AI governance is increasingly required in financial services