Page 60 - ITU-T Focus Group Digital Financial Services – Technology, innovation and competition

ITU-T Focus Group Digital Financial Services
Technology, Innovation and Competition

All of these steps, singly, and together, increase the level of assurance associated with the customer’s dynamic
digital identity.

The nature of the financial services that can be delivered to the customer can then be linked to this level of
assurance, rather than the initial lack of documentation, in an approach that can contribute to the Financial
Action Task Force’s (FATF’s) risk-based approach (RBA).

5 Digital identity and DFS practical example

To add context to this report, this section sets out a practical example of how a provider of digital identity
services and a mobile money (DFS) operator may collaborate in order to gain mutual benefit. Figure 6, below,
illustrates a scenario where a consumer has pre-registered with a state issued eID scheme and leverages that
identity during the application for a mobile money account. The process is as follows:

1. Consumer cryptographically signs an application for a mobile money account using their state-issued eID
card via a compatible agent owned smartphone.
2. The mobile money operator requests the personal attributes of the consumer from the eID scheme using
the signed application.
3. Once the relevant data has been received, the mobile money operator (in this instance also a MNO),
uses the data to create and issue a functional identity for the consumer via the mobile connect service.
From that point onwards, the consumer is able to authorise mobile money transactions via their mobile
connect identity.
The benefits of the model described include reduced friction during customer registration with the mobile
money provider, increased convenience for the customer when authorising transactions and access to other
services within the mobile connect ecosystem. However whether such a scheme would turn into a success
would be dependent on the specifics of the user experience, commercial structure, and functionality of the
DFS product.

Figure 6: Mobile Money, state-issued eID, and GSMA mobile connect

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