SOC 2 Compliance for Embedded Finance | Audit Ready

Introduction

Embedded finance companies face unique compliance challenges. Unlike traditional financial institutions with decades of established processes, fintech platforms must build SOC 2-compliant infrastructure from the ground up while maintaining the agility to innovate. NAYA provides the foundational financial infrastructure that makes SOC 2 compliance achievable without sacrificing development velocity.

SOC 2 (System and Organization Controls 2) is the gold standard for demonstrating that your organization handles customer data securely. For embedded finance products, this means proving that every transaction, balance update, and data access is tracked, controlled, and auditable.

The Problem

Achieving and maintaining SOC 2 compliance in embedded finance is challenging for several reasons:

Data Fragmentation: Financial data flows through multiple systems, including payment processors, banking partners, your application database, and accounting software. Auditors need a single source of truth, but most companies have data scattered across disconnected systems.

Audit Trail Gaps: Traditional databases allow data modification without preserving history. When an auditor asks, "Who changed this balance and when?", many systems cannot answer definitively.

Access Control Complexity: SOC 2 requires strict access controls, but implementing granular permissions across multiple financial systems is operationally complex. Teams often resort to overly permissive access that fails audit requirements.

Manual Evidence Collection: Gathering evidence for auditors typically requires weeks of manual work, including exporting logs, correlating timestamps, and building documentation. This diverts engineering resources from core product development.

Continuous Compliance Burden: SOC 2 is not a one-time certification. Maintaining compliance requires ongoing monitoring, regular access reviews, and continuous documentation updates.

The NAYA Solution

NAYA is designed with compliance requirements built into its core architecture, making SOC 2 readiness a natural outcome of using the platform.

Immutable Audit Trails

Every transaction in NAYA's Operational Ledger is immutable. Once recorded, entries cannot be modified or deleted. Corrections are made through reversing entries that preserve the complete history. This immutability satisfies SOC 2 requirements for data integrity and provides auditors with a complete, tamper-proof record.

Centralized Financial Data Layer

NAYA's Data Hub aggregates financial data from all your sources into a unified system. Instead of auditors reviewing multiple disconnected systems, they can examine a single, consistent data store with clear lineage back to source systems.

Granular Access Controls

NAYA provides role-based access control at the account, transaction, and API level. You can implement least-privilege access patterns that satisfy SOC 2 requirements while maintaining operational efficiency. Every access attempt is logged for audit review.

Automated Compliance Reporting

Generate audit-ready reports with a single API call. NAYA can produce transaction logs, access reports, and reconciliation summaries in formats that auditors expect, eliminating weeks of manual evidence collection.

How It Works

1. Connect Your Data Sources: Integrate your payment processors, banking partners, and internal systems with NAYA's Data Hub. All transactions flow through a unified, immutable ledger.

2. Configure Access Controls: Define roles and permissions that align with your security policies. NAYA enforces these controls across all financial operations and logs every access attempt.

3. Enable Automated Monitoring: Set up automated controls that continuously monitor for anomalies, unauthorized access, and policy violations. Alerts notify your team of potential issues before they become audit findings.

4. Generate Audit Evidence: When audit time arrives, export comprehensive reports covering transaction history, access logs, reconciliation results, and control effectiveness. Auditors receive consistent, well-organized evidence packages.

Key Benefits

• Reduced Audit Preparation Time: Cut evidence collection from weeks to hours with automated report generation.
• Continuous Compliance: Monitor compliance status in real-time rather than scrambling before annual audits.
• Lower Remediation Costs: Identify and address control gaps early, before they become audit findings.
• Auditor Confidence: Immutable records and comprehensive audit trails build trust with auditors and accelerate the certification process.
• Developer Productivity: Engineers focus on product features instead of building compliance infrastructure from scratch.
• Scalable Controls: As your transaction volume grows, NAYA's controls scale automatically without requiring additional compliance overhead.

Compliance & Reporting

Beyond SOC 2, NAYA's infrastructure supports broader compliance requirements common in embedded finance:

• PCI DSS Alignment: Data handling practices that support payment card industry requirements.
• State Money Transmitter Regulations: Audit trails and reporting that satisfy state-level financial regulators.
• Partner Due Diligence: Documentation and controls that banking partners require during vendor assessments.

By building on NAYA, your embedded finance product achieves SOC 2 compliance as a natural extension of its financial operations rather than a separate, burdensome process.

Related Resources

• Embedded Payments Ledger – Build compliant payment products
• Lending Ops Automation – Compliance for lending platforms
• ROI Calculator – Calculate your compliance savings

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