CXOToday has engaged in an exclusive interview with Sumit Chhabra, Chief Delivery Office, Acuity Knowledge Partners
Please describe your experience and your current role at Acuity Knowledge Partners
Experience
I have been working in the financial services industry for more than 24 years now, with experience across multiple businesses, including investment banking, private equity, commercial lending, consulting, data analytics, and market research.
I have the privilege of being one of the earliest employees at Acuity Knowledge Partners (Acuity), having joined the firm during its infancy. This has accorded me the opportunity for immense personal and professional growth.
Our central philosophy is work hard, play hard, and be kind! We take pride in being the best in the industry in terms of our length and breadth of services and integration with technology, providing solutions to over 600 marque financial institutional clients.
This has been made possible through a culture of investing in our people via best-in-class training, benefits, and ESOPs. Another important aspect of our value system is our emphasis on giving back to society though our CSR activities and Environmental, Social, and Governance (ESG) focus.
A true reflection of our success is the fact that many of our employees have been with us for over 15 years, which is exceptional in the current business environment.
Role
As Chief Delivery Officer, I provide leadership, oversight and guidance to the overall global service delivery operations, ensuring that we provide superior client-centric services, while also taking care of our delivery teams.
As a member of the Executive Committee, I am part of the corporate strategy formulation and execution group, supporting innovation, growth, and the development of our global delivery centers.
Additionally, an important part of my role is to chair our Diversity, Equity & Inclusion council.
Financial services are undergoing a major transformation with technology at the forefront. Could you share some of the key innovations in financial services that you believe are driving market expansion today?
I would classify the key innovation areas that are driving market expansion in the financial services industry under these major themes:
- Adoption of AI/ML
- To improve topline by enhancing customer centricity: The integration of AI has transformed several processes, including how financial institutions gather data and insights, personalize customer experiences, offer tailored financial products, and increase customer engagement. It also helps improve employee experience and efficiency, in turn driving growth
- To improve bottom-line through efficient operations:
- Automated credit decisions and wealth management
- Automated deal sourcing, due-diligence, portfolio value creation; more efficient back-office operations
- Personalized services, dynamic marketing, and product recommendations
- To improve security: Strengthen risk management and fraud detection by enabling real-time monitoring and faster response to potential threats
- Evolution of the Payment and Lending ecosystem: Peer-to-peer (P2P) lending, biometric payments, voice payments, and invisible payments
- Decentralization of finance: Blockchain technology and tokenization have introduced decentralized finance (DeFi), which is disrupting traditional systems and enabling new investment opportunities and digital asset ownership
- Due consideration to ESG: ESG considerations are now central to investment strategies, as consumers demand responsible finance
These developments necessitate modular platforms and microservices that allow companies to swiftly adapt to changes, enhance scalability, and integrate third-party services seamlessly, creating a more dynamic ecosystem for their services and helping in market expansion.
As a Chief Delivery Officer, how do you ensure that the strategies you develop are both client-centric and scalable across diverse global markets?
Our strategies are based on three core pillars that have ensured our scalability, growth and success:
- Customer-centric culture and engagement: We have a culture that prioritizes customer needs—all our services are customized to meet their specific requirements. We work as an extension of our clients’ teams and embrace their culture. This strong customer-centricity fosters long-term relationships, improves customer loyalty, and drives business growth. Our structured client feedback process and multiple touchpoints with our clients help to not only understand and meet their current requirements but also develop future solutions.
- Industry engagement—360-degree view of the industry: Every year we sponsor and participate in multiple industry events and roadshows where we interact with various industry stakeholders; this ensures we remain attuned to the needs and preferences of our client segments and helps us plan and tailor our services accordingly.
- Continuous improvement through technology: We are continually transforming our services with technology. Our suite of proprietary tools—Business Excellence and Automation Tools (BEAT) —support the development of multiple products scalable for multiple industry requirements (investment banks, commercial banks, private equity, asset managers, consulting and corporate firms), while our bespoke Data and Technology Services (DTS) provide contextual and client centric solutions—all focused on improving client processes through technology.
Given the current regulatory and geopolitical challenges, what key strategies should financial services firms adopt to mitigate risks and maintain resilience in their operations?
The world seems to be in a state of permacrisis as a result of global polarization (including regional and trade wars and regulatory regimes), technology disruptions (from cyberattacks and ransomware), and climate change.
The appropriate strategy to navigate these challenges will involve a re-think in the way financial services firms plan, operate and adapt.
- A standardized approach is a thing of the past in a dynamic changing world and will require:
- An informed outside view: This is to ensure a deep and real-time understanding of the geopolitical, economic, competitive, and industry environment. AI/ ML capabilities can help by automating most processes related to collecting and processing data and providing timely information
- A detailed inside view: Enterprise Risk Management (ERM) platforms need to be detailed and dynamic and adapt to changing scenarios to not only predict risks but also create mitigation mechanisms based on specific outcomes
- Risk models and response methods should move from precise future predictions to becoming more agile and adaptive.
- No need to reinvent the wheel: Effectively re-apply existing methods to different goals and for specific geographies and regulations
- Develop situation/location-specific responses: Build scenarios for responses based on the complexity of the organization, including size, global reach, business model and the resources required for response
Finally, Sumit, in your opinion, what does the next decade hold for the financial services industry in terms of growth opportunities, and how can firms best prepare for these changes?
The coming decade will see some recent trends magnify with greater proliferation of technology.
- Hyper personalization: Internet of Things (IOT) for banking/financial services, where connected devices (such as cars, smartphones, wearables, and electronic home goods) provide data to improve decision making and to render new levels of service to customers. However, the industry needs to address concerns about personal data security
- Quantum computing: Quantum algorithms will enhance functions requiring complex mathematical computing, such as financial modeling/simulation
- Embedded finance: Non-banking/financial platforms will drive expansion by offering financial services such as payments, credit, insurance, and investments within their existing ecosystems
- Continuing decentralization:
- Central Bank Digital Currencies (CBDCs): The potential adoption of CBDCs will impact how credit is managed and issued
- Open banking: Open banking will continue to grow rapidly, driven by the need for greater financial inclusion
Finally, long-standing considerations, such as the evolution of the regulatory landscape, cost management, and talent transformation will remain in focus to deal with these changes over the next 10 years.
Financial services firms can prepare themselves through:
- Customer centricity, with most developments centered around customer behavior and experience
- Technology adoption, given most changes are driven by technology
- Partnerships across various ecosystems to foster innovation
- Implementation of tighter controls, making risk management and cybersecurity systems robust
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