Page 19 - ITU-T Focus Group Digital Financial Services – Recommendations

ITU-T Focus Group Digital Financial Services
Recommendations

Title of recommendation Interoperability strategy and policy
Working Group Interoperability

Audience for recommendation Authorities, DFS Providers

Interoperability, reflected in strategies and policies of relevant authorities and market participants, should meet
the needs of participating DFS providers and the markets they serve by also aiming at increased efficiency, effec-
tiveness and affordability.

Interoperability should be consistent with the objective to improve payment system efficiency and
effectiveness. Interoperability is effective if it supports the reliable and timely exchange of payments
and supports the public policy goals of safety and efficiency. In the context of payment system oversight,
interoperability effectiveness requires meeting service and security requirements. To facilitate the assessment
of effectiveness, interoperability arrangements should have clearly defined goals and objectives.

Choices of financial regulators and other authorities, very often in consultation with the industry, are
increasingly reflected and communicated in strategy documents. But not only authorities should be
transparent on their interoperability strategy, also service providers involved in an interoperability arrangement
should formulate a clear strategy, which should be disclosed to relevant authorities, users and, at a more
general level, to other service providers.

The establishment of interoperability should support the relevant public policies. Among these public
policies can be to aim to facilitate the exchange of payments domestically and/or internationally, improving the
reachability of the providers and their customers, and increasing affordability. Rules and solutions to establish
interoperability should take into account market practices and technology and/or accommodate internationally
accepted communication procedures and standards adhered to by participating service providers.

In order to ensure efficiency for its users, interoperability should be designed having in mind the users’
current and future needs. Interoperable systems should provide users with practical services. In order to do so,
the size of the users’ activity (number of payments), the efficiency of the channels currently used for clearing
payments, and the jurisdictions within which they exchange payments need to be considered. The decision
on whether to establish interoperability should be based on a cost-benefit analysis.

The efficiency and effectiveness of interoperability should be measurable. Mechanisms for the regular
review of interoperability efficiency and effectiveness, such as periodic measurement of its progress against
its goals and objectives, should be established.

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