India’s FinTech success story—driven by digital payments, lending, neobanking, and blockchain innovation—is now facing a serious cybersecurity reckoning. According to a new report by PwC India, in collaboration with the Unified Fintech Forum (UFF), the rapid pace of digital financial growth has exposed India’s financial ecosystem to escalating cyber risks amid shrinking global cybersecurity investments.
The report, titled FinSec: An Emerging Equation Between FinTech and Cybersecurity, highlights that while technology-led disruption is driving efficiency and financial inclusion, it is simultaneously widening the attack surface for cybercriminals. With over 10,200 FinTech companies and more than 650 million smartphone users, India has emerged as a global FinTech hub—but the report cautions that cybersecurity must form the bedrock of this progress.
However, the timing couldn’t be more challenging. Global FinTech funding plunged to USD 39.2 billion in 2023, prompting firms to trim cybersecurity budgets just as cyberattacks intensify. The shortage of skilled professionals and heavy dependence on third-party service providers have compounded vulnerabilities, leaving critical systems exposed.
“As India cements its place as a global FinTech leader, cybersecurity is no longer a choice—it is the foundation for sustainable growth,” said Jatinder Handoo, CEO, Unified Fintech Forum. “FinTech and cybersecurity are inextricably linked, and protecting customer trust must remain non-negotiable. Collaboration between industry, regulators, and innovators is critical to secure the future of digital finance.”
Sundareshwar Krishnamurthy, Partner and India Cyber Leader at PwC India, emphasized that cybersecurity is the cornerstone of India’s FinTech future. “India’s FinTech revolution is powered by innovation and inclusion—but its future depends on cybersecurity. Trust, resilience, and growth demand that robust security stands at the core of every breakthrough. Only by embedding cybersecurity and collaboration at every step can we ensure that India’s financial transformation remains secure, inclusive, and globally influential.”
Shah Amber, Managing Director, PwC India, added, “As the FinTech sector is expected to reach USD 400 billion by 2030, a strong cybersecurity posture is essential to safeguard business value and build lasting customer trust. In this fast-evolving landscape, data protection and digital trust are not optional—they are foundational to innovation and resilience.”
Key Findings and Recommendations
The PwC-UFF report outlines several measures to address the emerging cybersecurity threats facing FinTechs:
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Implement Zero Trust Architecture with continuous authentication, micro-segmentation, and real-time monitoring.
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Adopt cloud-native security solutions that provide end-to-end visibility and scalability.
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Leverage artificial intelligence (AI) and machine learning (ML) for early threat detection and predictive defense.
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Develop quantum-resistant cryptography to prepare for next-generation cybersecurity risks.
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Strengthen RegTech integration to enhance compliance, governance, and oversight.
The report concludes that India’s FinTech growth story can only sustain its momentum through a unified, security-first approach. As digital transactions grow exponentially, cybersecurity is no longer a backend function—it’s a strategic imperative that will determine the resilience and trustworthiness of India’s financial future.