Page 271 - The Digital Financial Services (DFS) Ecosystem

ITU-T Focus Group Digital Financial Services
Ecosystem

Figure 13 – Enabling layers

Internet access: At a foundational level, the BoP’s Internet access must increase. Progress is needed in several
dimensions:

• Availability: Proximity of the necessary infrastructure required for access. The reach of 2G data networks
is relatively high, but more 3G or 4G mobile broadband networks that can carry richer data are needed.
Traditional MNOs could provide the solution but new entrants such as SpaceX may enable attractive
alternatives via micro-satellites and other technologies.
• Affordability: The cost of access relative to income. Cost includes the data, device, and battery charging
costs (including travel). Mobile phone decisions have a significant impact. While smartphones offer the
best user experience, they have shorter battery lives, use more data, and are more expensive. Technology
improvements may make smartphones a more practical solution (e.g., village-based solar charging,
batteries that allow rapid charging).
• Relevance: A reason for access, such as attractive content in a user’s main language.
• Readiness: The capacity to access, including skills, awareness, and cultural acceptance.
Social network adoption: The BoP need a reason to start using a social network website or mobile app. The
reason need not be commercial in nature. The motivation could be something as simple as low cost, social
network-enabled phone calls. The idea is to get anyone with Internet access to also create a social network
account. This stage is analogous to the introduction of e-mail in developed countries. The e-mail use case
drew people to the Internet. After becoming comfortable with e-mail, most eventually became e-commerce
shoppers.

Payment account linkage: Consumers must obtain and link payment methods to their social network accounts.
Without a payment account linked to a social network account, users will be limited to the informational aspects
of e-commerce. They won’t benefit from transactional aspects such as selling and buying products online,
or sending and receiving payments to and from employers, friends, and family. These payment accounts can
be mobile wallets, bank accounts, or even social network accounts if a social network has the appropriate
licenses. Regional characteristics will influence the type of accounts the BoP can link.

Social network commercial apps: Social networks must enable capabilities relevant to BoP commerce. Internet
access, social network adoption, and payment account linkage make it possible for the BoP to transact, but
robust commercial apps make it desirable to transact. Technology adoption typically occurs by solving specific
pain points. Challenges and solutions will vary geographically. In one country, the opportunity to design,

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