Cybersecurity serves as the backbone of the fintech landscape

Khaleej Times

20-05-2025

Cybersecurity serves as the backbone of the fintech landscape, enabling secure transactions, protecting consumer interests, and ensuring compliance with regulations. As the sector continues to evolve, the integration of cutting-edge cybersecurity strategies will be crucial in sustaining growth and maintaining trust in digital financial services, according to experts.
Industry executives and cybersecurity specialists said cybersecurity plays a pivotal role in safeguarding the burgeoning fintech sector, which encompasses a range of technologies transforming financial services, from mobile banking to blockchain and cryptocurrency applications.
'As fintech companies innovate and expand, they become attractive targets for cybercriminals seeking to exploit vulnerabilities for financial gain. Hence, robust cybersecurity measures are essential to prevent disruptions that can result from data breaches, fraud, or system outages,' say the experts.
Cyber Resilience
Subhalakshmi Ganapathy, Chief IT Security Evangelist at ManageEngine, said cybersecurity is not just a compliance requirement, but the foundation of financial stability in the UAE's rapidly evolving fintech landscape.
'With digital banking and cryptocurrency adoption surging, the attack surface is expanding, making robust security frameworks essential to preventing financial disruptions,' Ganapathy told BTR.
Referring to Statista data, she said the UAE's cryptocurrency market is expected to reach 3.78 million users by 2025, with a penetration rate of 39.13%. 'Regulatory initiatives like the Financial Infrastructure Transformation (FIT) programme and Dubai's Virtual Assets Regulatory Authority (Vara) demonstrate the country's commitment to cyber resilience,' she said.
However, she said financial institutions must go beyond regulations, proactively addressing threats such as ransomware, supply chain vulnerabilities, and crypto-specific risks.
'Given the UAE's global financial influence, a single cyber incident could have widespread repercussions. I believe public-private partnerships that integrate regulation with technological innovation are key to ensuring cybersecurity remains a business enabler, not an afterthought,' Ganapathy said.
Backbone of Trust
Ezzeldin Hussein, Regional Senior Director, Solution Engineering, META, SentinelOne, said cybersecurity is the backbone of trust in the UAE's rapidly growing fintech ecosystem, especially with the rise of digital banking and cryptocurrencies.
'As cyber threats become more sophisticated, financial institutions must proactively defend against fraud, data breaches, and ransomware attacks that could disrupt services and erode consumer confidence,' Hussein told BTR.
'Robust security frameworks, including AI-driven threat detection, zero-trust architecture, and blockchain security enhancements, are essential in mitigating risks. Regulatory compliance, such as adherence to UAE Central Bank guidelines and global security standards, also plays a crucial role in ensuring resilience,' he said.
Beyond technology, he said continuous cybersecurity awareness among users and financial professionals is vital.
'Attackers often exploit human vulnerabilities, making education and vigilance just as important as technical defenses. Strong cybersecurity measures don't just prevent financial disruptions, but also enable innovation and long-term growth in the UAE's fintech sector by ensuring a secure and resilient digital financial landscape,' Hussein said.
Data Protection, Regulatory Compliance
Analysts and IT experts opine that cybersecurity facilitates stability in fintech by protecting sensitive financial data.
'Fintech firms handle personal and transactional data, which if compromised, can lead to identity theft, financial losses, and a loss of consumer trust. Implementing encryption, secure authentication protocols, and regular security audits helps protect against unauthorised access and ensures that customer data remains confidential and intact,' says an expert.
In addition to protecting data, he said cybersecurity also aids in compliance with regulatory frameworks that govern financial transactions.
'With regulations like the General Data Protection Regulation (GDPR) and the Payment Card Industry Data Security Standard (PCI DSS), fintech companies must adhere to strict security guidelines. A strong cybersecurity posture not only helps avoid costly fines but also demonstrates a commitment to consumer protection and ethical business practices.'
Furthermore, proactive cybersecurity strategies, including incident response planning and continuous monitoring, are vital in swiftly addressing potential threats and vulnerabilities.
'By investing in cybersecurity technologies and fostering a culture of security awareness among employees, fintech companies can significantly reduce the risk of cyberattacks and subsequent financial disruption,' according to an IT specialist.