Page 268 - The Digital Financial Services (DFS) Ecosystem

ITU-T Focus Group Digital Financial Services
Ecosystem

camping gear, to auto accessories, to toys. Alibaba trains the rural residents for this entrepreneurial
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transition. The government also plays a role. With commerce concentrated in geographic areas, the
Chinese government can target infrastructure projects like road construction to improve fulfilment
capabilities.
• Concierge commerce: Entrepreneurial individuals can act as intermediaries to online commerce. Taobao
villages in China also provide a good example. Local representatives who have developed expertise in
searching Alibaba marketplaces can search on behalf of less technically-savvy individuals. This concept
is analogous to over-the-counter (OTC) payments in which an MNO agent makes an eMoney payment
on behalf of a customer.

Market knowledge

BoP merchants could learn about competitors, new markets, market prices, etc.

Access to new products and suppliers
Social networks can help merchants purchase from a wider array of suppliers and discover new products. This
may occur in online marketplaces where merchants and suppliers connect, or may just involve simple search
functionality.

Virtual entrepreneurship

Some social media sites enable users to earn money by creating content. For example, Google shares a portion
of YouTube advertising revenue with video creators. Taringa, a popular social media site in Argentina, recently
announced plans to share advertising revenue with writers of articles. Taringa will pay these writers in bitcoin.
Micro-revenue sharing wouldn’t be cost-feasible using other payment methods. Social networks could adopt
some of these social media business model tactics.

On-demand marketplaces

Networks are enabling a market for part-time employment and asset sharing. For example, Uber’s user network
and routing technology made it possible for an individual to transport passengers to unfamiliar locations. This
concept is already materializing in developing countries (e.g., Airbnb in Cuba). Social networks could provide
or distribute these services.

Exposure to job openings

Organizations can reach a larger pool of candidates via networks and candidates can discover a wider range
of opportunities. The social nature of social networks enables a deeper understanding of the candidate and
employer (e.g., reference checking).

4.5 Beneficial data collection

Privacy issues aside for the moment, data collection can be quite beneficial. Data can make things ‘free’ by
enabling targeted advertising. Imagine the frustration if users had to pay even a nominal amount for each
Google search they performed. While this concept may hold true across all populations, the BoP may gain
unique benefits, such as greater access to credit.

9 Jing, Meng. Taobao village clusters spreading reach. China Daily. December 26, 2015. http:// www. chinadaily. com. cn/ business/
tech/ 2015- 12/ 26/ content_ 22813508. htm (accessed May 2016).

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