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India's rapidly expanding FinTech industry is facing growing cybersecurity risks even as it cements its position as a global leader in digital finance, noted a report by PwC India and the 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. India, home to more than 10,200 FinTech companies, has become one of the world's largest hubs for financial technology innovation. Fuelled by over 650 million smartphone users and strong government-backed digital initiatives, the country's FinTech revolution continues at an unprecedented pace. However, this rapid growth has made cybersecurity the bedrock of sustainable progress, the report warns. Despite surging adoption, several challenges are undermining cybersecurity readiness. Global FinTech fundingS 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. Only by embedding cybersecurity and collaboration at every step can we ensure that India's financial transformation remains secure, inclusive, and globally influential," he said. Shah Amber, Managing Director at PwC India, emphasized that with the FinTech sector projected to reach USD 400 billion by 2030, strong cybersecurity will not only protect businesses but also reinforce customer confidence,"safeguarding customer data and building digital trust are not just priorities; they are essential for driving innovation and resilience across the financial ecosystem." he said. 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, adopting cloud-native security solutions for better visibility and scalability, leveraging artificial intelligence (AI) and machine learning (ML) to detect and neutralize threats early, developing quantum-resistant cryptography to counter emerging risks and strengthening RegTech integration for improved regulatory oversight. (ANI)
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