INDUSTRIES

Fintech

Empower your fintech organization to enhance security, protect financial data, and demonstrate operational excellence with Glocert International's specialized ISO certifications, security assessments, and compliance solutions.

Why Fintech is Different

Fintech companies handle highly sensitive financial and customer data, operate under strict regulatory oversight, and are subject to evolving cybersecurity, privacy, and financial sector regulations. The combination of regulatory pressure, financial data sensitivity, operational risk, rapid innovation, and third-party exposure creates unique compliance challenges that require specialized expertise and fintech-specific solutions.

Regulatory Obligations

Fintech companies must navigate multiple regulatory frameworks including PCI DSS (payment card security), SOC requirements (service organization controls), RBI regulations (India), SEBI regulations (India), GDPR (EU), and local financial sector regulations. Understanding which regulations apply and how they intersect is critical for maintaining compliance, avoiding penalties, and protecting financial data across different jurisdictions. Fintech-specific regulations vary by services offered and jurisdictions served.

Common Compliance Mistakes

Many fintech companies make critical mistakes including treating compliance as a checkbox exercise instead of a governance system, implementing security controls without aligning with business processes, ignoring third-party and vendor risk, failing to maintain evidence between audits, and insufficient payment card security. Understanding these common pitfalls helps organizations avoid costly compliance failures and regulatory penalties.

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Regulatory Obligations

Understanding which regulations apply to your fintech organization and how they intersect is critical for maintaining compliance and protecting financial data.

Mandatory Requirements

PCI DSS: Required for fintech companies that accept, process, store, or transmit payment card data. Applies to payment processors, digital wallets, and fintech platforms handling cardholder data.

RBI Regulations (India): Required for fintech companies operating in India, including RBI IS compliance, payment aggregator regulations, and digital lending guidelines.

SEBI Regulations (India): Required for fintech companies offering investment services, trading platforms, or wealth management services in India.

GDPR (EU): Required for fintech companies processing personal data of EU residents, including financial data and transaction information.

Commonly Required Frameworks

SOC 2: Commonly required by enterprise customers and partners for fintech service providers. Demonstrates security, availability, processing integrity, confidentiality, and privacy controls.

ISO/IEC 27001: Widely recognized information security management system standard, often required for enterprise contracts, partnerships, and regulatory compliance in fintech.

ISO/IEC 27701: Privacy information management system extension to ISO 27001, helping fintech organizations demonstrate GDPR and other privacy law compliance.

Emerging Regulatory Focus

Operational Resilience: Increasing focus on business continuity and operational resilience for fintech companies, including ISO 22301 and regulatory requirements.

Third-Party Risk: Enhanced scrutiny of third-party vendors, payment processors, and service providers in fintech operations.

AI Governance: Growing emphasis on AI systems in fintech, including transparency, bias, and ethical use requirements for AI-powered financial services.

Commonly Adopted Certifications

These certifications help fintech organizations demonstrate compliance, protect financial data, and meet regulatory requirements.

ISO/IEC 27001

For information security governance. Provides a systematic approach to managing information security risks and protecting financial data across fintech operations.

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SOC 2

For service organization controls. Commonly required by enterprise customers and partners for fintech service providers. Demonstrates security, availability, processing integrity, confidentiality, and privacy controls.

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PCI DSS

For payment card security. Required for fintech companies that accept, process, store, or transmit payment card data. Ensures secure handling of cardholder data and payment transactions.

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ISO/IEC 27701

For privacy management. Extends ISO 27001 to provide a privacy information management system aligned with GDPR, CCPA, and other privacy regulations, essential for fintech companies handling customer financial data.

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ISO 22301

For business continuity. Ensures fintech organizations can maintain critical operations and financial services during disruptions, essential for operational resilience.

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RBI IS

For India financial sector compliance. Reserve Bank of India Information Security framework for fintech companies operating in India, including payment aggregators and digital lenders.

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SOC 1

For financial controls. Demonstrates Internal Controls Over Financial Reporting (ICFR) for fintech companies handling financial transactions and processes.

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ISO 31000

For risk management. Strengthens risk management capabilities and enhances organizational resilience in fintech operations, addressing financial, operational, and technology risks.

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Common Compliance Mistakes

Understanding these common pitfalls helps fintech organizations avoid costly compliance failures and build more effective security and compliance programs.

Treating Compliance as a Checkbox Exercise

Many fintech companies implement compliance frameworks as a checklist rather than a governance system. Effective compliance requires executive leadership, organizational culture change, and integration with business processes, not just technical controls.

Security Controls Without Business Alignment

Implementing security controls without aligning with business processes and customer requirements leads to friction, workarounds, and compliance failures. Security must integrate seamlessly with financial operations and product development.

Ignoring Third-Party and Vendor Risk

Fintech companies often focus on internal controls while overlooking third-party vendors, payment processors, cloud service providers, and software supply chain risks. These represent significant risk vectors that must be assessed and managed.

Failing to Maintain Evidence Between Audits

Many fintech organizations prepare evidence only during audit periods, leading to gaps, inconsistencies, and compliance failures. Continuous evidence maintenance and monitoring are essential for effective compliance in financial services.

Insufficient Payment Card Security

Many fintech companies fail to properly implement PCI DSS requirements, including network segmentation, encryption, access controls, and monitoring. Payment card security requires comprehensive controls, not just basic compliance.

Inadequate Incident Response Planning

Fintech organizations often have incident response plans that are not tested, not integrated with operations, or fail to address customer notification, regulatory reporting, and business continuity requirements effectively.

How Glocert Supports Fintech Organizations

Glocert supports fintech organizations through independent certification, assurance, and audit services aligned to international standards and financial sector regulations.

Our fintech compliance services include ISO 27001 certification for information security governance, SOC 2 audits for service organization controls, PCI DSS compliance for payment card security, ISO 27701 certification for privacy management, ISO 22301 certification for business continuity, RBI IS compliance for India financial sector, and penetration testing to identify and remediate security vulnerabilities.

We understand the unique challenges of fintech organizations including regulatory complexity, financial data sensitivity, payment card security, rapid innovation, third-party vendor risk, and operational resilience. Our auditors bring deep fintech industry expertise and work with you to build compliance programs that integrate with product development, protect financial data, and meet regulatory requirements across multiple jurisdictions.

Frequently Asked Questions

Do fintech companies need both PCI DSS and ISO 27001?
Many fintech companies benefit from both certifications. PCI DSS is mandatory for organizations handling payment card data and demonstrates payment card security. ISO 27001 provides a comprehensive information security management system framework that can help demonstrate PCI DSS compliance more effectively. Many fintech companies use ISO 27001 as the foundation for their security program and pursue PCI DSS to meet payment card security requirements. The choice depends on whether you handle payment card data, customer requirements, and compliance strategy.
How does third-party vendor risk affect fintech compliance?
Third-party vendor risk is critical in fintech given reliance on vendors for payment processing, cloud services, software components, and business processes. Fintech companies must assess vendor security capabilities, require appropriate certifications (SOC 1, SOC 2, ISO 27001), ensure contracts include security and privacy requirements, monitor vendor compliance, and have incident response plans that include vendors. Many financial breaches originate from third-party vendors, making vendor risk management a priority. PCI DSS, ISO 27001, and regulatory requirements include vendor management obligations.
Are fintech companies subject to the same requirements as traditional banks?
Fintech companies face similar but sometimes more stringent requirements. Fintech companies handling payment card data need PCI DSS, those handling financial transactions may need SOC 1, and those handling customer data need ISO 27001 and ISO 27701. Regulatory requirements vary by jurisdiction and services offered. Many fintech companies must comply with banking regulations, payment regulations, and data protection laws. Customers often require fintech companies to achieve certifications before engaging their services, making compliance a competitive necessity.
What happens if a fintech company operates in multiple jurisdictions?
Fintech companies operating across jurisdictions must comply with all applicable regulations. A US fintech company with EU customers must comply with both US financial regulations and GDPR. Organizations may need to address data residency requirements, cross-border data transfer restrictions, and jurisdiction-specific financial and privacy laws. ISO 27001 and ISO 27701 provide frameworks that can help harmonize compliance across jurisdictions, but organizations must still meet jurisdiction-specific requirements. Many organizations use ISO 27701 to demonstrate GDPR compliance while also addressing other privacy regulations.
How do payment card processing requirements differ from general financial compliance?
Payment card processing introduces specific requirements including PCI DSS for payment card security, network segmentation, encryption, access controls, and monitoring. Fintech companies processing payment cards must also comply with financial regulations, SOC 1 for financial controls, ISO 27001 for information security, and ISO 22301 for business continuity. Payment card security requirements are more prescriptive than general financial compliance, focusing on protecting cardholder data throughout the payment lifecycle. Many fintech companies pursue PCI DSS, SOC 1, and ISO 27001 to demonstrate comprehensive security and financial controls.
Can fintech companies use ISO 27001 instead of separate PCI DSS and SOC 1 certifications?
ISO 27001 provides a comprehensive information security management system, but PCI DSS and SOC 1 serve different purposes. PCI DSS is mandatory for organizations handling payment card data and demonstrates payment card security. SOC 1 demonstrates Internal Controls Over Financial Reporting (ICFR) for financial processes. Many fintech companies pursue ISO 27001 as the foundation for their security program, add PCI DSS for payment card security, and pursue SOC 1 to meet customer and regulatory requirements for financial controls. The choice depends on whether you handle payment card data, customer requirements, and compliance strategy.
What are the implications of cloud hosting for fintech compliance?
Cloud hosting introduces additional compliance considerations for fintech companies. Organizations must ensure cloud providers meet security and privacy requirements, implement appropriate access controls, and ensure data encryption. Under PCI DSS, organizations remain responsible for payment card data even when stored in the cloud, so proper vendor assessment and contract management are critical. Many fintech companies require cloud providers to achieve SOC 2 or ISO 27001 certification. ISO 27017 and ISO 27018 provide cloud-specific security and privacy controls. Regulatory requirements may also restrict cloud hosting of financial data in certain jurisdictions.
How should fintech companies approach business continuity and operational resilience?
Business continuity and operational resilience are critical for fintech companies given the need to maintain financial services during disruptions. ISO 22301 provides a business continuity management system framework, and many financial regulators require operational resilience capabilities. Fintech companies should implement business continuity plans, test them regularly, ensure critical systems can be recovered, and have incident response plans that address customer notification and regulatory reporting. Many fintech companies pursue ISO 22301 to demonstrate business continuity capabilities and meet regulatory requirements for operational resilience.

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