India’s booming fintech industry, while driving global digital finance innovation, is increasingly facing heightened cybersecurity challenges, according to a new report by PwC India and the Unified Fintech Forum (UFF).
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.
India, now home to more than 10,200 fintech companies and supported by over 650 million smartphone users and robust government-led digital initiatives, has become a global FinTech powerhouse. However, PwC and UFF caution that this rapid growth makes cybersecurity “the bedrock of sustainable progress.”
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.
“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 of the Unified Fintech Forum. “Fintech and cybersecurity are inextricably linked, and protecting customer trust must remain non-negotiable.”
Echoing similar views, Sundareshwar Krishnamurthy, Partner and India Cyber Leader, PwC India, stressed the importance of embedding security across all layers of digital finance. “India’s FinTech revolution is powered by innovation and inclusion—but its future depends on cybersecurity. Only by integrating security and collaboration at every step can we ensure India’s financial transformation remains secure, inclusive, and globally influential,” he said.
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.
To address growing cyber threats, the report suggests several key measures, including implementing zero trust architecture with real-time authentication, adopting cloud-native security frameworks for scalability, using AI and ML for early threat detection, developing quantum-resistant cryptography, and enhancing regtech integration for improved regulatory oversight.
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.