Fintech industry expert Sergey Kondratenko explains that ISO (International Organization for Standardization) standards are a set of international standards and recommendations developed jointly with stakeholders.
Their goal is to ensure uniform and consistent methods, processes and practices in the fintech industry. These standards are designed to improve the security, efficiency and interoperability of financial innovation, improve accessibility and security of services.
Sergey Kondratenko is a recognized specialist in a wide range of e-commerce services with experience for many years. Now, Sergey is the owner and leader of a group of companies engaged not only in different segments of e-commerce, but also successfully operating in different jurisdictions, represented on all continents of the world. The main goal is to drive new traffic, create and deliver an online experience that will endear users to the brand, and turn visitors into customers while maximizing overall profitability of the online business.
The specialist draws attention to the fact that in the field of fintech, ISO is developing standards that relate to the following aspects:
- Information Security. ISO standards in this area define measures and methods for ensuring information security in fintech, including risk management, cybersecurity and data protection.
- Interoperability. These standards aim to ensure compatibility and interoperability between different fintech products and systems so that they can work together seamlessly.
- Quality and performance. ISO standards can define quality and performance requirements for financial technologies to ensure they operate reliably.
- Management of risks. These standards govern fintech risk management practices, including risk assessment and controls.
- Transparency and documentation. ISO standards can also define documentation and reporting requirements for fintech projects and companies.
Compliance with ISO standards in fintech can help increase trust with clients and investors, as well as facilitate international communication and collaboration in this rapidly evolving field. To succeed in this industry, you need to be aware of the key aspects of fintech frameworks and standards, how to update them and communicate them.
Sergey Kondratenko: ISO 20022 is an updated ISO standard, its role in the fintech industry
ISO standards are of great importance for fintech, they ensure consistency and compatibility in the process of creating and implementing fintech solutions. They facilitate collaboration between fintech stakeholders such as regulators, service providers, customers and partners. Sergey Kondratenko emphasizes that compliance with standards allows you to avoid common mistakes, reduce risks, and increase the efficiency and effectiveness of fintech projects.
To overcome a number of barriers that are encountered in fintech, the ISO 20022 standard was adopted. According to the expert, all fintech participants should familiarize themselves with it, especially those who plan to remain in the industry in the near future.
What is the ISO 20022 standard and its impact on industrial practices?
The international standard ISO 20022 is designed for the exchange of information between financial institutions. It serves as a unified language for sending and exchanging payment data. According to Sergey Kondratenko, this improves interaction between financial institutions, payment systems and companies around the world. The more consistent and structured the information is, the more efficient and secure the payment process will be.
Benefits of ISO 20022 and challenges associated with implementing the standard
ISO 20022 messages are more information-rich than their predecessors because they can contain more structured data. This increases transparency and reduces delays that were present during manual processing.
Sergey Kondratenko emphasizes that the ISO 20022 standard today represents a significant challenge in the field of financial payments:
– On the one hand, the transition to a globally standardized payment model has many benefits, such as automatic reconciliation and payment of invoices. However, for banks and companies this also means the need to modernize their payment systems. No matter how convenient the new global standard is, moving to it is not an easy task.
If a bank’s payment system is not ISO 20022 compliant, it will have to create an intermediate layer between its system and the global framework. Not only is this a slower process than if two ISO 20022 systems could communicate directly, but it can also result in data loss. And losing data means missing out on some of the benefits that ISO 20022 provides.
Payment perspectives with ISO 20022 standards
The transition to the ISO 20022 standard is changing the payment system on a global scale. And although not all fintech participants find it easy to implement this standard, Sergey Kondratenko emphasizes that by 2025 ISO 20022 should become a global payment system with a number of advantages:
- Improved data exchange with improved information quality meets the long-term needs of customers who require more detailed information about the financial transfers included in each payment order. This feature is also important for risk managers and regulators who require additional security and assurance.
- Extended capabilities. The ISO 20022 standard provides more structured data, which allows you to develop innovative banking products as quickly as possible.
- Increased efficiency. This standard systematically increases the level of automation (STP) and reduces errors caused by poor data quality, which can create risks in financial markets.
In the long term, ISO-native architectures will become the standard for the entire fintech industry, says Sergey Kondratenko. This standard offers financial institutions and companies the opportunity to move away from monolithic architectures that slow down and constrain their development. Instead, they can become more flexible and agile, taking full advantage of the ISO 20022 standard as well as industry changes.
ISO and cybersecurity
The main goal of ISO is to ensure the safety as well as the quality of products and services to protect the interests of consumers and users. According to Sergey Kondratenko, the organization also provides technical support to governments in the field of health and safety.
According to the expert, two powerful ISO standards stand out in the field of information security: ISO 27001 and ISO 27002.
- ISO 27001 standard forms the basis for organizing consistent, systematic and cost-effective information protection. It can be applied by organizations of different sizes and in different sectors by implementing an information security management system (ISMS). This system includes specific specifications, documentation, management responsibilities, internal audits, continuous improvement, and corrective and preventive measures.
Sergey Kondratenko emphasizes the importance of using the ISO 27001 standard for organizations in the fintech sector. This standard provides a systematic and proactive approach to information security risk management. Its use allows you to create a reliable system that is able to identify potential threats, apply various security methods and constantly update security capabilities.
- ISO 27002 is one of the key ISO standards and is considered a modern complement to ISO 27001.
ISO 27002 provides a variety of possible checks that are aimed at correcting errors identified during a formal risk assessment.
Sergey Kondratenko also points out that the ISO 27002 standard is constantly updated and contains references to other standards, as well as to innovative approaches in the field of information security that appear after previous publications. This standard also focuses on the selection, implementation and control methods taking into account the specific information security environment and risks within each organization.
Thus, ISO standards provide fintech organizations with a unified language for information exchange and security collaboration. This is of particular importance when interacting with partners, customers and suppliers. According to Kondratenko, compliance with recognized standards helps to increase confidence in information security methods and strengthen protection measures for the fintech industry.