Page 109 - ITU-T Focus Group Digital Financial Services – Recommendations

ITU-T Focus Group Digital Financial Services
Recommendations

Title of recommendation Establishing QoS standards for DFS networks, platforms and other technical
elements

Working Group Consumer Experience and Protection
Theme Quality of service (QoS)

Audience for recommendation Telecom Regulators

Telecom regulators should establish QoS standards for DFS networks, platforms, and other technical elements,
in consultation and coordination with the financial regulators and with input from stakeholders including DFS
providers and telco operators. To oversee and enforce standards, the regulator should establish quarterly elec-
tronic reporting requirements on standardized metrics and should mandate corrective actions by noncompliant
providers. Standards should be used as a criterion for licensing of DFS providers where reliable metrics can be
established.

Quality of service (QoS) is defined as the collective effect of performance that determines the degree
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of satisfaction of a user of the service. QoS generally is measured using objective criteria, versus a more
subjective “quality of experience,” and the term is generally used in the telecommunications sector. The above
recommendation and related QoS topics have been taken up and are being considered by ITU-T Study Group
12 which deals with quality of service issues.

Issues (real or perceived), such as an inability to initiate or complete a transaction due to network downtime,
excessive multi-step processes, and complex or confusing interfaces are deterrents to successful usage as well
as trust and acceptance of DFS by potential customers. In fact, the failure to complete a transaction due to
network downtime is frequently a top customer concern .
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Telco regulators must ensure that the relevant networks, platforms, and other technical elements that serve
DFS are in place and functioning properly. They should also consult and coordinate with financial regulators
and DFS providers to establish QoS standards that are appropriate to the nature of digital delivery of financial
services. QoS standards for DFS should evolve over time, taking into account new services, technologies, risks,
and other relevant developments.

Because digital provision of financial services adds unique operational risks, such as new sources of potential
fraud or technology failures, licensing decisions should consider the proposed DFS provider’s ability to manage
and mitigate these risks, including those related to agent involvement in transaction processing. Where
standard QoS metrics have been established, these could be incorporated into licensing decisions as well.

Over time, standardized QoS metrics and methods for monitoring performance should be established so that
the regulator does not solely rely on DFS providers’ self-reported data. Regulators should require periodic
electronic reports from providers disclosing their performance against these metrics and mandate corrective
actions by providers who are not in compliance. In addition, DFS providers’ performance results compared
to the mandated service standards should be publicly available to promote transparency, oversight, and
accountability.

Regulators should also consider establishing DFS provider liability for legitimate losses suffered by consumers
(such as from fraud or agent misconduct) resulting from QoS issues (e.g. network downtime). Contractual
agreements between DFS providers and other parties involved in the transaction could then establish the
extent to which DFS providers can assert claims on others. However, the regulatory-established liability should
ideally rest with the DFS provider.

79 Recommendation E.800 (2008) http:// www. itu. int/ rec/ T- REC- E. 800- 200809- I

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