Amit Agrawal, currently CFO & COO at Lockton India, brings over two decades of expertise in finance, strategy, regulatory affairs, and consulting. A chartered accountant, IIM-Bangalore alumnus, and CFA Charterholder (USA), he possesses unique blend of academic brilliance and proven strategic acumen of leading turnarounds. Known for driving M&A, entrepreneurial spirit, and navigating complex regulatory landscape by close coordination with RBI, SEBI, and IRDAI, his stints include Tata, KPMG, Indiabulls, Jana SFB and assurances for global banks Citi, Standard Chartered, and ICICI. Recognized as Global Inspirational Leader, Most Influential CXOs, Financial Express Influencer, and CFO of the Year across years, Amit is also a tech and sports enthusiast, passionate investor, and active in community initiatives reflecting his commitment towards society.
In this section, we bring you our exclusive conversation with Amit Agrawal, an expert in BFSI, with his dynamic and unique approach to business strategy, touching upon interplay of technology, analytics and regulatory landscape for growth. Here are the excerpts:
How can a CFO balance the adoption of emerging technologies while ensuring regulatory compliance in the financial services industry?
Amit: I have been privileged to gain unique perspective on the interplay between technology and compliances having led regulatory matters as well as digital transformation both. CFOs must navigate the delicate balance of adhering to strict regulatory requirements, such as Data Security, AML, KYC norms, and Disclosures, while also staying competitive through emerging technologies that demand constant innovation and quick adaptation. The real challenge lies in operating in a dynamic environment where both regulations and tech are continuously evolving. Compliance is often seen as a barrier to technological advancement; however, I see it as an opportunity, as technology turns complimentary. Real-time and automated reporting systems not only helps fulfill regulatory requirements but also foster trust and transparency with regulators. AI, Machine Learning, and Blockchain are offering transformative RegTech solutions. A notable example is Bank of America's AI-driven assistant, Erica, that automates AML checks, improving accuracy and speed.
In response, regulators as well are becoming more open to technological shifts, with initiatives like Regulatory Sandbox, allow fintech firms to test innovative products in controlled environments. The first cohort of RBI’s regulatory sandbox, launched in 2020, focused on areas such as payments, digital lending, and financial inclusion. Similarly, SEBI offered a framework for firms to test new ideas in real market conditions without immediately needing to comply with all requirements, like blockchain usage by Fintech for securities transactions. IRDAI enabled InsurTechs to experiment with new product distribution, pricing, underwriting, and claim models, and allowed car insurance such as pay-per-mile. Moreover, recently introduced ASBA facility in Insurance is another example of regulators embracing innovative solutions to improve customer experience. Technology has transformed from a competitive edge to a business essential, and to manage compliance risks while staying agile, CFOs shall proactively adopt to it.
What role does data analytics play in driving strategic decision-making for growth, and how to leverage it effectively? How do you see CFOs role evolving in this context?
Amit: The role of a CFO has evolved from being a numerical lion to a strategic business partner. Today’s CFOs spend most of their time on growth strategies and governance, integrating analytics into financial planning, and forecasting. Advanced data analytics enables us to convert raw data into valuable insights, helping in proactive risk management. To put it into perspective, I recall an interesting real-life example at Jana SFB. I led an interesting study there for Rhythm of loan disbursals in micro-lending, and discovered correlations of rhythmic patterns with Delinquencies (Portfolio at Risk), Target Achievements, Rejections, and Attritions. Interestingly smoothness of distribution, was found to have startling influence on those key business parameters. High rhythm positively correlated with target achievements and negatively with NPAs, rejections, as well as attrition. Though seemingly intuitive, it provided an insight perhaps never researched before with such depth or conformity, and helped channelize our KPIs towards crucial metrics.
Similarly in insurance sector, efficiency in pricing products is being leveraged through predictive analytics. Further at Aon, we leveraged QlikView for real time reports in desirable formats that helped strategizing geographical presence, resource allocation and manpower distribution, helping in a super charged growth environment. With vast access to data, CFOs are increasingly seen as Chief Future Officers, driving growth with analytics. Data analytics has become a critical component for strategic decision-making, and governance in fast-paced, regulated environment.
In the context of digital transformation, what are the key challenges CXOs face in aligning financial strategies with technological advancements, and how to overcome those? With the rise of AI and automation, do you think few roles would become obsolete?
Amit: Over the last decade, I’ve had the privilege of leading strategy, finance, operations and compliance, gaining insights that go beyond financial metrics. In the context of digital transformation, CXOs face several key challenges when aligning financial strategies with technological advancements. First and foremost is, balancing investment in innovation with financial prudence, especially when returns are not immediately visible. Another hurdle is, ensuring agility and scalability. Traditional financial frameworks seldom support the rapid pace of technological change. Next is integration with legacy systems to ensure a single source of truth. This is further complicated by the need for real-time data to drive decisions. Moreover, concerns around data security, change management, and aligning global stakeholders must be addressed to ensure tech advancement. In an era of instant loans, DPDP Act and data localization, would make compliance in BFSI increasingly onerous.
To overcome these challenges, we shall adopt a collaborative approach between finance, operations, compliance and technology. AI, cloud computing, and blockchain need upfront investments and hence flexibility in financial planning, with incremental investments is the need of the hour. It’s a "Leap of Faith" before "Return on Investments" (LoF over RoI). By embracing technology and fostering innovation, companies can drive sustainable growth. Ultimately, aligning financial strategies with tech advancements is an inescapable reality.
On the roles being redundant, AI and automation will certainly transform the way we work, but will not replace jobs the way it is perceived. It will evolve to create more impactful roles with opportunities for strategic, innovative, and creative skillsets. I always say it is too risky not to take risks, but leveraging available resources most effectively is an art.
During economic downturns, how do you decide when to cut costs versus when to invest for future growth? Have financial strategies changed post covid crisis, and what lessons did you learn from that?
Amit: Navigating profitability versus stability during economic downturns requires a careful balance. The focus must be on preserving cash flow while continuing to invest in long-term growth. My motto is “all decisions are good if made timely”. Hence I kickstarted Project Kubera in order to ensure liquidity and improved cash flows during Covid times. This approach helped us stay resilient when others were looking to cut costs. Despite tough times, we made not so difficult decision to fully support our employees, and to not continue with cost optimization measures.
Key learnings included the importance of governance, leveraging team strengths, and maintaining financial flexibility with effective risk management. Technology played a crucial role - our entire M&A process, including valuations, due diligence, and regulatory approvals, was conducted digitally. From regular tax returns to audits, automated treasury investments and regulatory communications to employee reimbursements, all took a shape never imagined before. These experiences have not only enhanced financial acumen but also reshaped how organizations approach risk, technology, and long-term planning in a post-pandemic world.
How do you reconcile short-term profitability with long-term sustainability objectives? Is integrating ESG (Environmental, Social, and Governance), all about compliance?
Amit: In a world of growing awareness, ESG is evolving from a mere compliance requirement to a core business strategy. Organizations are voluntarily adopting BRSR (Business Responsibility and Sustainability Reporting), and simply meeting CSR obligation is no longer sufficient. Leaders are increasingly prioritizing governance at the core of decision-making processes. Integrating ESG into decision-making is not just a trend, but a fundamental shift in how businesses operate and grow. Take Patanjali, for example- according to reports, in early 2010s, it recognized the need for sustainability to drive long-term growth and incorporated ESG principles into their strategy. This commitment resulted in about 20-25% increase in loyalty over 3-4 years, enhancing sales as well as brand equity. The study claims high topline and bottom-line boost due to sustainability initiatives with rising customer loyalty. Multiple studies show that 88% of consumers favor environmentally conscious brands, while 76% would stop purchasing from those harming environment. Additionally, 89% of investors now consider ESG factors when making decisions to invest.
While globally multiple sustainability standards are in practice such as GRI 207, EU Taxonomy, and GHG (Greenhouse Gases) Accounting System, Carbon Border Adjustment Mechanism, UN Sustainable Development Goals (SDGs); India is making significant strides with BRSR, Carbon Accounting at airports, Green Bonds among others. In conclusion, integrating ESG principles into business strategies is essential for long-term growth and success, offering organizations a competitive edge while building trust with consumers, investors, and stakeholders alike.
Disclaimer: The views expressed herein are solely those of the thought leader in his individual capacity, and do not represent views of affiliated organization(s).
