• Global FinTech funding fell to $39.2bn in 2023, cutting investment in cybersecurity just as attacks intensify
  • Shortage of skilled professionals and reliance on third parties are leaving the fintech firms vulnerable

Mumbai : India’s rapid FinTech expansion has left the country’s financial sector increasingly exposed to cybersecurity risks, a report by PwC India, in collaboration with the Unified Fintech Forum (UFF) said.

The report titled FinSec: An Emerging Equation Between FinTech and Cybersecurity finds that while new technologies are fuelling innovation in digital payments, lending, neobanking and blockchain, they are also opening up fresh vulnerabilities.

With 10,200 FinTech companies operating in the country, India has become a global hub for digital payments, lending, neobanking and blockchain innovation. As FinTech adoption accelerates—driven by over 650 million smartphone users and government-backed digital initiatives—cybersecurity has become the foundation for sustainable growth, as per the PwC UFF report.

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.

Additionally tighter budgets have weakened defences. Global FinTech funding fell to $39.22bn in 2023, forcing many firms to cut cybersecurity spending. A global shortage of skilled IT professionals has slowed the deployment of protective systems, leaving gaps that criminals are exploiting. Heavy dependence on third-party service providers and the race to roll out new products have further amplified the risks.

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: 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.

Shah Amber, Managing Director at PwC India, As the FinTech sector in India is expected to grow rapidly (USD 400 billion by 2030), a strong and robust cybersecurity posture will enhance business protection and help build a reputation that customers and stakeholders can confidently rely on. In this fast-evolving landscape, safeguarding customer data and building digital trust are not just priorities; they are essential for driving innovation and resilience across the financial ecosystem.

Recommendations to reduce cyber threats:

To address these challenges, the report sets out a series of recommendations:

  • Build Zero Trust Architecture, including continuous authentication, micro-segmentation and real-time monitoring.
  • Adopt cloud-native security solutions with full visibility and scalability.
  • Use artificial intelligence and machine learning to detect threats at an early stage.
  • Develop quantum-resistant cryptography to prepare for next-generation risks.
  • Strengthen regulatory technology (RegTech) integration to improve compliance and oversight.