India’s Banking, Financial Services, and Insurance (BFSI) sector should view governance not as a hindrance to innovation, but rather as a framework that facilitates responsible growth, stated Debasish Panda, Former Secretary of the Ministry of Finance and Chairman of the Insurance Regulatory and Development Authority of India (IRDAI), during the ETCIO Annual Conclave 2026.
Panda emphasized that as financial services undergo transformation driven by artificial intelligence (AI), embedded finance, digital public infrastructure, and cybersecurity threats, the goal of this reinvention must focus on enhancing societal outcomes, promoting inclusion, and building resilient institutional frameworks.
During the session titled “From Regulation to Reinvention: Building the Future of BFSI with Technology, Governance, and Human Leadership,” moderated by Shantheri Mallaya, Editor of ETCIO, Panda stated that BFSI reinvention is much more than a technological upgrade. It necessitates a fundamental shift in institutional thinking, highlighting the transition of technology from a support function to a pivotal role in business transformation.
“Reinvention is not a technology upgrade; it is a mindset. The mandate today is clear: learn fast, adapt faster, and transform technology from a support function into the engine of business reinvention and future growth,” Panda noted. He stressed that the evolution of the financial sector must be assessed by its impact on citizens, particularly in a country with digital systems functioning at a population scale. He reiterated that each regulatory and technological initiative should consider the needs of the last-mile citizen.
“Ultimately, whatever we do translates into societal outcomes—economic well-being, health, education, and social harmony,” he articulated.
Panda pointed out that regulators are increasingly fostering innovation through principle-based frameworks, moving away from rigid regulatory structures. Reflecting on his experience at IRDAI, he discussed how the insurance sector has transitioned toward a more adaptable regulatory framework designed to promote growth while ensuring accountability.
He highlighted the evolution of insurance regulation and the advent of digital public infrastructure as instances where regulation can encourage market expansion. “The regulator aims to facilitate and ensure responsible growth,” he remarked.
Additionally, he identified regulatory sandboxes as crucial for nurturing BFSI innovation. He noted that regulators in banking, markets, and insurance have developed frameworks that allow for experimentation while maintaining accountability.
Hussain Zaidi, Vice President of the BFSI Client Unit at Kyndryl India, contributed an industry-technology perspective, underscoring that resilience in BFSI is contingent upon secure, collaborative, and future-ready infrastructure. As financial institutions increasingly adopt AI-driven transformation, he emphasized that security, performance, and collaboration among stakeholders will be essential for maintaining trust.
The discussion also explored the next phase of BFSI transformation, encompassing autonomous banking, embedded finance, and financial inclusion. Panda cautioned that technology-driven solutions should not overlook the human aspect, especially when addressing the needs of citizens potentially excluded by purely mechanical or algorithmic models.
“Technology should not detract from the human approach. It must be implemented thoughtfully to avoid discrimination against those who genuinely require access,” he asserted.
The session concluded with a key takeaway for the industry: the future of BFSI will hinge on collaboration among regulators, technology providers, and financial institutions. As AI transitions from experimentation to responsible large-scale deployment, governance, security, and human leadership will be paramount in determining whether innovation is trusted, inclusive, and resilient.
(With inputs from Sachi Srivastava.)
Published on May 21, 2026, at 07:58 PM IST.
