PwC India and Unified Fintech Forum Release Report on the ‘Intersection of FinTech and Cybersecurity’

PwC India, in collaboration with the Unified Fintech Forum (UFF), has released a comprehensive report titled “FinSec: An Emerging Equation Between FinTech and Cybersecurity.” The report highlights that with 10,200 FinTech companies operating in the country, India has become a global hub for digital payments, lending, neobanking, and blockchain innovation. The report underscores that as FinTech adoption accelerates—driven by over 650 million smartphone users and government-backed digital initiatives—cybersecurity has become the foundation for sustainable growth.

It states that while emerging technologies in the FinTech space are catalysing innovation and growth, they are also giving rise to new cybersecurity threats and challenges. 

According to the report, a reduction in global FinTech funding to USD 39.22 in 2023, had led to a high reduction in cybersecurity budget. The report states that reduced financial resources is one of the main reasons the cyber security systems are not able to cope with the new innovative attacks. Similarly, a global shortage of promising IT professionals also contributes to the delay in implementation of security measures by firms. 

Reliance on third-party services; rapid pace and need for newer product launches warrant granular focus on cyber security measures.

Jatinder Handoo, CEO, 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. This report is a timely reminder that 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, added: “quote to be included”

Recommendations to reduce cyber threats: 

The report recommends building a Zero Trust Architecture (ZTA), which includes continuous authentication, micro-segmentation, and real-time monitoring and adoption of adoption of Cloud-native Security solutions with real-time visibility as two of the most important action points for Fintechs to strengthen resilience.

Using AI & ML for threat detection; Quantum-resistant cryptography and Reg-tech integration are some of the other recommended areas of implementation. 

The report highlights that strengthening cybersecurity measures, enhancing threat intelligence, and fostering global cooperation are crucial to safeguard financial stability. Organisations are increasingly looking at cybersecurity as a key differentiator for achieving a competitive edge in the market. As cyber threats intensify, a strong and robust cybersecurity posture will enhance protection and help build a reputation that customers and stakeholders can rely on.