ISO 27001 Benefits for FinTechs

Let's talk about the financial sector and its desires for information security. Anyone working in the financial sector should at least know that there is no way around a high level of security awareness. But what data is actually processed in the financial sector? What exactly is at risk and where? And who is ultimately affected? But above all, how can the best protection be ensured? 

As a "normal citizen," one actually assumes that business areas that handle other people's money should be protected in almost the same way as areas that juggle personal health data, for example. In fact, however, this is not always the case. That's because it often only takes a simple registration to get an operating license and go wild on the market.  

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But the financial sector has special requirements when it comes to information security. This is due to the sensitive and confidential nature of financial data, as well as the regulatory requirements to which the sector is subject. This special treatment should not surprise anyone. 

In fact, the sector has a number of regulations, such as the Payment Card Industry Data Security Standard (PCI DSS) and the General Data Protection Regulation (GDPR), that impose additional information security requirements on organizations. 

And where is the financial sector most vulnerable? In transactions. So let's move on to the widely used term "FinTech"! Shortly explained, the word "FinTech" is a simple combination of the words "finance" and "technology". It describes the use of technology to provide financial services and products to consumers. These can be banking, insurance, investments - anything that has to do with finance.  

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Okay, FinTechs, the irreplaceable beloved players! I mean, is there even a life without PayPal anymore? You're out at a restaurant with friends and you just don't feel like digging through the complex bill. Usually the person with the least patience whips out a credit card, "You can PayPal me." PayPal as a verb... well.

So many monetary transactions for a few pancakes, healthy salads and tons of coffee... 

But hey, fintech solutions make dinners with friends easier! And for that, we're all thankful! 

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So FinTech simplifies financial transactions for consumers or businesses, making them more accessible and generally more affordable. In most cases, more data and money rush through the air in an hour than kilowatts through heating systems in Canada! Neither should be "broken" for even a moment. 

What needs to be protected in the FinTech industry and how?

Nowadays, many people pay only by card, cell phone, watch or (very rarely) by mind transfer! And this is exactly what the PCI DSS security standard deals with.

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Payment Card Industry Data Security Standard (PCI DSS)

The Payment Card Industry Data Security Standard (PCI DSS) is a set of security standards designed to ensure that all companies that accept, process, store or transmit credit card data maintain a secure environment. The standard was developed by the major credit card companies (Visa, MasterCard, American Express, Discover and JCB) to reduce the risk of credit card fraud.

To become PCI DSS certified, you must meet the requirements of the standard and undergo an annual assessment by a qualified security assessor (QSA). This will verify that your company has implemented the required controls and is adhering to the required security practices. Learn more: PCI DSS

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Can ISO 27001 cover PCI DSS?

‍Quick refresher: What is ISO 27001?

ISO 27001 is an international standard that establishes best practices for information security management. It provides a comprehensive approach to managing sensitive information by establishing and maintaining an information security management system (ISMS).

The standard is globally recognized and adopted by organizations of all sizes and industries worldwide, including the financial industry.

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As such, ISO 27001 can cover the requirements of PCI DSS to some degree. ISO 27001 provides a comprehensive framework for managing and protecting sensitive information, including credit card data.

Many of the controls specified in ISO 27001 align with PCI DSS requirements, and organizations can use the standard to meet PCI DSS requirements. 

In conclusion, ISO 27001 certification is especially important in the financial sector, where data security is paramount. Here, for example, it goes far beyond the PCI DSS certificate required for credit card processing.

In this regard, ISO 27001 certification helps a fintech company demonstrate its commitment to information security and give customers and partners confidence that their sensitive data is safe. Especially when there are even regulatory requirements to be met.

Therefore, the overall security posture of a fintech company should always operate at a high level of security.

And GDPR...?

Can ISO 27001 cover GDPR?

Yes, kinda, ISO 27001 can also help organizations comply with the General Data Protection Regulation (GDPR) in the fintech industry. The GDPR is an EU data protection and privacy law for all individuals in the European Union (EU) and the European Economic Area (EEA).

ISO 27001 provides a comprehensive framework for managing and protecting sensitive information, including personal data, covered by the GDPR. 

To summarize: The financial sector, including fintech, has unique information security and compliance requirements under ISO 27001 because financial data is sensitive and confidential, and the sector is subject to regulatory requirements.

In addition, organizations in the financial sector must take special care to protect sensitive financial information, such as personal financial information, credit card numbers and other sensitive financial data. ISO 27001 provides guidelines for managing such information, including requirements for access control, data backup and recovery, and secure data transmission.

In conclusion, while the basic principles of ISO 27001 apply to all organizations, the financial sector has specific information security requirements that must be considered when implementing an ISMS and obtaining ISO 27001 certification.

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And after receiving certification, fintechs can expect many benefits.

ISO 27001 Benefits for Fintechs:

1. Customer Trust! With ISO 27001 certification, you can show your customers that you take cybersecurity seriously by adopting the globally recognized "InfoSec" gold standard!

2. Attracts new business and employees! ISO 27001 certification helps your organization win new customers and employees by ensuring that all IT systems meet or exceed industry standards by demonstrating that you are committed to providing your customers with a high level of confidentiality, integrity, and availability.

3. Reduces security vulnerabilities! By using ISO 27001 as part of your security process, you can ensure you are following best practices and are as responsive as possible when it comes to data security.

4. Avoid potentially costly security breaches! From lost sales to reputational damage, these costs can quickly lead to the financial ruin of your business.

5. Compliance with business, legal, contractual and regulatory requirements! ISO 27001 includes a comprehensive risk assessment and management program designed to help organizations meet their compliance requirements.

6. Improvement of processes and strategies! Improve your processes and strategies with the help of ISO 27001. By assessing the state of existing information, it is easier to make decisions for the future and what you want to achieve in the company.

7. Quality assurance! The ISO 27001 standard establishes a framework for quality management systems that supports the concept of an organization-wide approach to quality assurance.

And many more...

Achieving (and maintaining) ISO 27001 certification is a time-consuming process that is often logistically challenging and takes up valuable hours of your time.

We are here to reduce the time spent on certification! Book a consultation.