By leveraging the expertise of specialised cybersecurity providers, FinTech firms can enhance their security capabilities and effectively mitigate cyber threats.
This is an exclusive article series conducted by Santosh Vaswani, Journalist & Editor at CIO News with Praveen Paulose, MD & CEO of Celusion Technologies.
The Indian FinTech sector is undergoing a severe shortage of cybersecurity personnel, posing significant challenges to its growth and security infrastructure. At present, India has one of the highest numbers of fintech adopters compared to global standards. The numbers stand at a staggering rate of 87%, which is significantly higher than the worldwide rate of around 64%. Many factors could have catalysed this growth, such as widespread and cheap internet access and increasing shifts towards digital payments.
This poses a unique challenge to the Indian fintech sector: how can they keep up with such rapid growth? In order to do justice and deliver quality outcomes, the industry is in dire need of talent, such that it is skilled and experienced enough to hold off any potential threats to its users. This shortage can gravely threaten the security and integrity of financial transactions and customer data. This highlights the urgent need for proactive initiatives to address this issue. Currently, more than 60% of fintech companies in India have reported a shortage of skilled workers. And this has been brewing for a long time.
Reasons for Manpower Shortages in the Fintech Sector
Several factors contribute to the shortage of cybersecurity personnel in the Indian FinTech sector. One of the primary reasons for the lack of manpower in not only fintech but in any other industry is the lack of skilled personnel, such as qualified individuals with expertise in cybersecurity. While a company can invest in providing training to young graduates, understanding how to correlate knowledge with the current market requirements must come through the personal ability of decision-making; the gap between academic knowledge and practical skills remains a challenge.
The cybersecurity subsector desperately needs more hands-on deck. One primary reason for the need for more individuals is the need for dedicated training centres or educational institutions focusing on the skills necessary for the job. Second, as the employee side has reported, there needs to be more satisfactory compensation and a steady decline in benefits.
Most companies are still looking for qualified cybersecurity personnel. A possible reason for this is the current economic uncertainty looming over corporations. As the offerings decline, more competent and skilled employees are looking for the next best thing.
The soft skill levels of individuals in this field have also been questioned multiple times. According to ISCA, the lack of soft skills is a systematic issue, and the industry must act urgently to address it.
Solutions for the Fintech Sector to Combat the Manpower Shortage
This problem requires a holistic approach, one that bridges the gap between organisations and employees while addressing system issues. Such collaboration will require intense hands-on training, which will equip the individuals with much-needed knowledge to tackle unpredictable and urgent matters.
Furthermore, fostering alliances between FinTech and cybersecurity firms can help bridge the skills gap. By leveraging the expertise of specialised cybersecurity providers, FinTech firms can enhance their security capabilities and effectively mitigate cyber threats.
Apart from that, offering lucrative benefits and attractive compensation will entice young people to enter the field and retain their current talent. Also, having in-house mentorship for young professionals is guaranteed to amplify their loyalty towards the organisation and give them a better outlook on the industry. This initiative will provide the organisation with dual benefits, including transferring skills to shape the next generation of cybersecurity professionals in India.
Conclusion
While the situation might seem dire with frequent cyber-attacks on various enterprises, there is still hope lingering on the horizon for the sector to shape a secure future. This industry has a lot of potential to employ while safeguarding the resources trusted upon it, and it is high time the key players in the sector used it. With concerted efforts and strategic initiatives, this challenge can be addressed effectively. By investing in education and training, fostering partnerships, and prioritising talent retention, the FinTech sector can strengthen its cybersecurity posture and ensure a secure digital ecosystem for financial services.
Also read: Nurturing Responsible Online Behavior in Students by Building a Culture of Digital Citizenship
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