CEO Insights Magazine

The banking and financial system plays a crucial role in supporting the business and economy of the country but faces significant challenges in dealing with stressed and nonperforming assets. Before the introduction of the Insolvency and Bankruptcy Code (IBC), one of the key hindrances to an effective and efficient resolution process was the asymmetry of information among the various stake holders. Delayed resolution was an impediment in maximizing the value of assets. To address these issues, the IBC brought in the concept of regulated Information Utilities which serve as central repository of verified and non-repudiable information for use in the legal process.

Diwakar Kannan, an accomplished technologist with around three decades of experience in the IT sector, joined NESL in 2017 and has held various senior leadership positions before becoming the CTO of the organization in 2020.

In an exclusive interview with CEO Insights, Diwakar sheds light on his overall professional journey, his leadership approach, and much more.

Give a brief account of your professional background and experiences.
I have 3 decades of experience in the IT sector. I started my career working on projects in the banking domain and later in various other domains, such as logistics and supply chain management. I have managed large infrastructure operations for some of the largest technology MNC’s globally. In 2017, I got the opportunity to join NESL and have held senior leadership positions since then. At NESL, I had the privilege of playing a key role in setting up the platform for India’s first Information Utility.

Since 2020, I have been the CTO of NESL. I have also served as the Non-Executive Director for NESL E-Infrastructure, a subsidiary of NESL and as the CEO additional-charge in

another subsidiary NESL Asset Data (NADL) which is in the Account Aggregator business.

Define National E-Governance Services as an organization and its current position in the market.
NESL is India’s first Information Utility and is registered with the Insolvency and Bankruptcy Board of India (IBBI) under the aegis of the Insolvency and Bankruptcy Code, 2016 (IBC). The company has been set up by leading banks and public institutions such as SBI, BoB, HDFC, ICICI, NABARD, LIC, and many more. The primary role of NESL is to serve as a repository of legal evidence holding the information pertaining to any debt/claim, as submitted by the financial or operational creditor and verified and authenticated by the parties to the debt.

What is your take on the dynamic technology trends in the sector and how would you describe its interventions in your organization?
A lot of disruptive innovations are currently happening in the world of technology. When it comes to leveraging technology, as a leader and CTO, the philosophy that I have been following is to be cognizant of technological advancements and the adoption should be in the best interest of the stake holders and ecosystem. The foremost consideration while designing platforms for a country like India is to plan for solution that is scalable, cost-effective and of course highly secure.

What is the management style that you follow as a leader?
As far as my management style is concerned, I believe in empowering the team and not micromanage. I set the expectations while allowing them to operate freely with certain defined boundaries. At the same time, you need to have appropriate levels of oversight. While a leader needs to operate at a high level, he also should be able to delve deeper in case required. A motivated team is the cornerstone of organizational success.

What is the future destination you are headed towards?

Having established the Information Utility as a national-level repository of financial information, comprising of both financial and operational debts, we continued to leverage the same by introducing other value-added offerings like Digital Document Execution (DDE) and Electronic Bank Guarantee (e-BG).

Our DDE platform revolutionizes paperless debt contract execution, including digital stamping, overcoming the challenge of traditionally paper based process and also a 'State' subject. Collaborating with State Governments and ministries, we've achieved fully digital stamping acceptance. This innovation fills a significant gap in India's digital infrastructure, mainly benefiting Financial Service Providers. DDE promises a transformative impact on document execution in the country.

e-BG was introduced in India to manage the entire life cycle of bank guarantees electronically, a first in the country. This includes the stamping and execution of the BG document. The e-BG initiative aims to benefit stakeholders by reducing delays, eliminating frauds and enhancing efficiency.

Through platforms like the above, we have demonstrated how a regulated entity like us can foster innovation. As a regulated entity, we see ourselves continuing to play the role as an enabler in the overall ecosystem of the country, by bringing technological innovations to the benefit of all stakeholders.

Diwakar Kannan, CTO, NeSL
An accomplished technologist with more than three decades of extensive experience in implementing IT systems across various sectors, such as Insolvency & Bankruptcy, Account Aggregation, Supply Chain, Logistics, and Banking, Diwakar Kannan joined NESL in 2017 and has held various senior leadership positions throughout his journey at the firm. Currently, as the CTO of the firm, he has been instrumental in the implementation of Information Utility.

•Hobbies:Cooking, Photography, Singing
•Favorite Cuisine:South Indian
•Favorite Travel Destination:Hilly Regions

Awards & Recognition:(Company)
•Won the Best Innovation in RegTech award by India FinTech Forum in 2022
•Won Best RegTech Award at Business World Festival of Fintech Awards in 2023