India, 29 May 2026: With financial institutions increasingly adopting AI for fraud detection, underwriting, and credit assessment, Sunil Govindarajan, CRO and Director at Optimo Capital, is warning against the push for completely autonomous lending. He maintains that strict governance and human supervision are essential pillars for any effective implementation.
Speaking during a panel on Digital Transformation & AI Integration at the CXO Summit & Awards 2026, Sunil observed that although AI provides clear advantages in predictive accuracy and operational efficiency, lenders need to focus on systems that remain transparent, auditable, and under consistent human review.
"In lending, speed without governance can become a risk multiplier. AI should strengthen decision-making, not replace accountability," said Sunil Govindarajan during the discussion.
Leveraging over two decades of experience in lending, underwriting, and risk strategy—which includes significant work in scaling portfolios for Indian NBFCs—Sunil explored how AI could reshape the Indian mortgage industry, specifically by streamlining underwriting workflows and property valuation.
He pointed out that India’s mortgage-to-GDP ratio is still significantly lower than that of developed countries, which offers a major opening for growth fueled by technology. Sunil proposed that the adoption of AI-powered benchmarking and valuation tools could speed up processing, increase lender confidence, and reduce fraud, especially in emerging markets and Tier-3 regions where operational verification is frequently challenging.
A key focus of Sunil’s presentation was the necessity of prioritizing governance when integrating AI into financial institutions and NBFCs. He emphasized that any AI tool used for underwriting, fraud detection, reporting, or enterprise risk management must be transparent, logic-based, explainable, and completely auditable.
He also reviewed the wider use of AI throughout the financial services lifecycle, covering areas like loan origination, collections, underwriting, and compliance reporting. While he recognized that AI can reduce manual effort and improve predictive power, he insisted that human oversight, data integrity, and strong governance frameworks remain vital safeguards.
During the event, Sunil Govindarajan received the CXO Leadership Excellence Award in recognition of his substantial contributions to credit strategy, risk management, and the broader lending sector.
Throughout the session, Sunil emphasized the need to build lending systems grounded in governance, where technology enables fast, data-backed decisions without compromising accountability, long-term asset integrity, or underwriting discipline.
With extensive experience spanning MSME financing, loan against property, credit operations, and enterprise risk management, Sunil has played a key role in building and growing various lending portfolios throughout the Indian financial landscape.
Sunil Govindarajan is a seasoned professional in lending and risk management, with more than 20 years of expertise in underwriting, credit strategy, MSME financing, and enterprise risk management. He currently serves as Chief Risk Officer at Optimo Capital and Director at Nipun Projects and Finance Private Limited, where he has been instrumental in scaling credit portfolios and lending operations for Indian NBFCs. His core professional focus includes governance-led lending, risk strategy, loan against property (LAP), and the implementation of responsible AI in financial services.
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