Indian fintech companies that offer online payment gateways and mobile wallets have had a wonderful new year. Due to the Government’s plan to demonetize old Rs 500 and Rs 1,000 notes, which formed 85% of all the cash in circulation, led to a lot of people using digital payments for all their needs. Even small shops and grocers now accept online payments over the phone through payment gateways like PayTM, Mobikwik and Freecharge. A sudden surge of customers is what most of these fintech companies did not anticipate and they were clearly not ready to manage so many customers and transactions all of a sudden. The most common occurence when a financial institution is ill prepared is a fraud!!
In anticipation to this, fintech companies have spent over $100 million (approx Rs 680 crores) on hiring cybersecurity experts from countries like Israel, US and Russia! The question is why would they need to go abroad for this? Why not hire a consultant in India? Cybersecurity firms in these three countries are considered to be the best in the World. However, experts from the industry have said that it is high time that startups come up in India to tackle this problem. India has some huge banks and financial institutions and with a sharp uptick in the adoption and usage of digital services they all will need strong cybersecurity apparatus which can withstand cyber-attacks of high magnitude.
If fintech startups can spend $100 million in the six short months since demonetization, one can only imagine the spending that will be done by established banks and financial institutions which migrate to a digital only platform. The industry can easily be over $2 billion. Cybersecurity is turning out to be another sunrise sector that will soon create thousands of jobs for those thoroughly trained in it.