Fobi AI (TSX-V:FOBI, OTCQB:FOBIF) Inc said it has completed a Service Organization Control 2 (SOC 2) Type 1 audit, opening the way for it to win business from federal and provincial governments, as well as large organisations including banks, credit unions and insurance companies.
The technology company, a leader in providing real-time data analytics through artificial intelligence, noted that SOC 2 is a technical auditing process conducted by independent auditors who measure the availability, security, and integrity of an organization’s unique data processing systems, and determine whether effective safeguards and controls are in place.
“Obtaining the SOC 2 Type 1 certification reinforces Fobi’s ongoing commitment to the security, availability, and processing integrity of Fobi’s platform,” the company's chief technology officer Tamer Shafiq said in a statement.
“Our clients can feel very confident that we are making every investment to establish and maintain the highest level of security and compliance,” he added.
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To comply with SOC 2, Fobi said it demonstrated that it had established rigorous policies and procedures under the Trust Services Criteria for security, availability and confidentiality. Additionally, the report verifies the existence of internal controls which have been designed and implemented to meet the requirements for the security principles.
This independent validation of security controls is crucial for organizations operating in highly regulated industries such as financial services, which Fobi is now moving towards, the company added.
The audit was conducted by AARC-360, a nationally recognized CPA firm, registered with the PCAOB, specializing in assurance, advisory, risk, and compliance services.
Fobi said the audit required a substantial financial and internal resource commitment, positioning it well with large corporations and government bodies that require SOC2 compliance to do business with them. It is also a significant third-party validation of the company’s internal and external processes highlighting its high-level operational execution, Fobi said.
“The significance of this accomplishment cannot be understated as we have dedicated thousands of hours over the last nine months in efforts to ensure a successful outcome,” Fobi CEO Rob Anson said.
“Passing the SOC2 audit gives us a distinct competitive edge as we can assure our current and various pilots and prospect customers in our pipeline that we have taken all steps necessary to keep their data safe, thereby protecting them from potential data breaches. The SOC2 certification is a crucial component in securing government and enterprise contracts. The certification is also timely as we support Telus and other channel partners,” he added.
Anson noted that Fobi has, until now, been ineligible to participate in various RFPs (Request For Proposals) and as a result has lost out on many large-scale projects due to the lack of possessing the SOC2 compliance and certification. He said the certification will enable the company to pursue such organizations as the federal and provincial governments, crown corporations, credit unions, banks, credit card companies, insurance companies, and merchant payment and finance companies.
“With Fintech becoming an immediate opportunity as a result of the PassWallet acquisition, we believe we are now positioned well to realize and achieve great success in 2022 as a result of our SOC2 certification,” Anson concluded.
Contact the author at stephen.gunnion@proactiveinvestors.com