India’s Fintech industry and Fintech growth a part of digital transformation growth is facing growing cybersecurity risks as per reports prepared by PWC & Unified Fintech Forum (UFF).
The report, titled “FinSec: An Emerging Equation Between FinTech and Cybersecurity,” highlights how new technologies while driving innovation in digital payments, lending, neobanking, and blockchain are simultaneously creating new vulnerabilities.
There are several challenges:
Despite surging adoption, several challenges are undermining cybersecurity readiness. Global FinTech funding are going down, reducing cybersecurity budgets at a time when attacks are increasing.
A global shortage of skilled cybersecurity professionals has slowed the deployment of protective systems, while over-reliance on third-party service providers has further widened exposure.
Highlighting the need for collaboration between industry and regulators, Jatinder Handoo, CEO of the Unified Fintech Forum, said, As India cements its place as a global FinTech leader, cybersecurity is no longer a choice–it is the foundation for sustainable growth.
FinTech and cybersecurity are inextricably linked, and protecting customer trust must remain non-negotiable.”
Sundareshwar Krishnamurthy, Partner and India Cyber Leader at PwC India, added that the future of India’s financial transformation depends on embedding cybersecurity at every level, “India’s FinTech revolution is powered by innovation and digital inclusion–but its future depends on cybersecurity. Trust, resilience, and growth demand that robust security stands at the core of every breakthrough.
The PwC-UFF report proposes several measures to tackle rising cyber threats.
It includes, implementing Zero Trust Architecture with continuous authentication and real-time monitoring.
This involves adopting cloud-native security solutions for better visibility and scalability.
If organization leveraging artificial intelligence (AI) and machine learning (ML) to detect and neutralize threats early.
Investing in developing quantum-resistant cryptography to counter emerging risks and strengthening RegTech integration for improved regulatory oversight.
The report notes that declining global fintech funding has limited cybersecurity investments at a time when cyberattacks are rising.
A shortage of skilled cybersecurity professionals and overdependence on third-party vendors have further increased exposure to risks.
Shah Amber, Managing Director, PwC India, added that with the FinTech sector projected to reach USD 400 billion by 2030, strengthening cybersecurity will be essential to maintaining customer trust. “Safeguarding customer data and building digital trust are not just priorities; they are fundamental to innovation and resilience across the financial ecosystem,” he said.
PwC and UFF emphasised that collaborative efforts between FinTech companies, regulators, and cybersecurity experts will be crucial to protecting the integrity and trust that underpin India’s digital financial future.
The report highlights that as technologies such as digital payments, neobanking, online lending, and blockchain reshape the financial ecosystem, they are also exposing new security vulnerabilities.
