Securing Stakeholders’ Trust in Nigerian FinTech Through ISO 27001:2022

By Kehinde Bamidele

Nigeria’s FinTech ecosystem, which is one of the most vibrant in Africa, is rapidly transforming how individuals and businesses access financial services. With the rise of mobile money, online lending, savings apps, and blockchain platforms, digital financial inclusion is at an all-time high. However, this innovation comes with increased exposure to cybersecurity threats, fraud, and data breaches, especially as many users entrust FinTechs with sensitive personal and financial information.

In this high-risk environment, trust becomes a non-negotiable currency. To earn and sustain this trust, Nigerian FinTechs must adopt global standards that demonstrate their commitment to protecting customer data. One of such standards is ISO/IEC 27001:2022, a comprehensive framework for building robust Information Security Management Systems (ISMS).

This article explores how Nigerian FinTechs can implement ISO 27001 to build credibility, meet regulatory expectations, and enhance consumer trust in the local and international markets.
The Responsibility of FinTech in Data Protection
FinTech handle vast volumes of customer data, including bank account details, identification information (e.g., NIN, BVN, Passport), credit history, and biometrics. As custodians of this sensitive data, they are responsible for:

– Preventing unauthorised access and hacking
– Maintaining confidentiality, integrity, and availability of information
– Ensuring data privacy and secure processing
– Providing reliable, uninterrupted service delivery

Failure to uphold these responsibilities can result in loss of consumer confidence, regulatory penalties, and reputational damage, especially in an environment where digital trust is still being built.
Relevant Regulations and Industry Standards in Nigeria
Nigerian FinTechs are subject to several data protection and cybersecurity regulations, including:

– Nigeria Data Protection Act (NDPA) 2023
– CBN Cybersecurity Framework for Deposit Money Banks and Payment Service Providers
– General Data Protection Regulation (GDPR)
– Industry standards such as:
– PCI DSS
– SOC 2
– NIST CSF
– ISO/IEC 27001:2022

What is ISO/IEC 27001:2022?

ISO/IEC 27001:2022 is the latest global standard for Information Security Management Systems (ISMS). Jointly developed by the International Organisation for Standardisation (ISO) and the International Electrotechnical Commission (IEC), it outlines how organisations can manage information security risks systematically.

It covers areas such as access control, encryption, physical security, risk assessment, incident management, and business continuity.
How to Obtain ISO 27001:2022 Certification in Nigeria

Getting ISO 27001 certified is a strategic investment for Nigerian FinTechs:

1. Gap Assessment
2. Define Scope and Objectives
3. Design and Implement the ISMS
4. Train Staff
5. Internal Audit
6. Engage an Accredited Certification Body

Examples of local certification bodies include:
– 3Consulting Limited (www.3consulting-ng.com)
– PECB Africa (Nigeria Office) (www.pecb.com)
– Diligence Consulting (www.diligencegroup.ng)
– Digital Encode (www.digitalencode.net)
– SON (www.son.gov.ng)

7. Certification Audit (Stage 1 and Stage 2)
8. Annual Surveillance Audits
9. Recertification every 3 years
Why Nigerian FinTechs Should Pursue ISO 27001 Certification
Benefits include:
– Building consumer trust
– Enhancing regulatory compliance
– Attracting investors and partners
– Improving security resilience
– Gaining competitive advantage

Conclusion
Nigeria’s FinTech sector is thriving, but to sustain this momentum, trust and security must be prioritised. As data breaches and cyber threats continue to rise, FinTech companies must go beyond minimum compliance to adopt internationally accepted standards.

ISO/IEC 27001:2022 offers Nigerian FinTechs a comprehensive, proven, and strategic framework to strengthen information security, ensure data privacy, and inspire confidence in stakeholders.

References:

1. AAA Cert. (2023, July). Fortify Your Fintech Future. https://www.aaa-cert.co.uk/post/fortify-your-fintech-future-harnessing-the-power-of-iso-27001-compliance
2. ISMS.online. (2023, June). ISO 27001 for the Fintech Sector. https://www.isms.online/sectors/iso-27001-for-the-fintech-sector
3. Transak. (2023, July). ISO/IEC 27001 Certification. https://transak.com/blog/transak-secures-key-iso-iec-27001-certification
4. European Commission. (2023, April). GDPR. https://commission.europa.eu/law/law-topic/data-protection/data-protection-eu_en
5. BSI Group. (2023, May). ISO/IEC 27001:2022 Standard Explained. https://www.bsigroup.com/en-GB/iso-27001-information-security/
6. Nigeria Data Protection Commission. (2023, July). NDPA. https://ndpc.gov.ng