Page 72 - ITU-T Focus Group Digital Financial Services – Technology, innovation and competition

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

Figure 10: Brokered identity provider architecture

A.4.1 Applications within DFS

Although similar to the federated IDP model, the intermediary hub in the brokered IDP architecture creates
a number of key differences.

The hub provides a layer of anonymity between the IDPs and the service providers they are sending data to.
Service providers are unable to identify which provider made the assertion and IDPs are unable to see which
service providers their assertion is being delivered to. In instances where a consumer transactional identity is
held with a mobile money provider, a layer of anonymity may not be appropriate, however this model does
provide opportunity to restructure the delivery of DFS services in a manner which leverages the use of shared
distribution networks.

Although certain regulations explicitly forbid exclusivity arrangements between mobile money providers and
agents, commission structures and loyalty incentives are often imposed to a degree where this is de facto
not the case. As a result, situations can occur where multiple mobile money providers compete for agents
rather than customers to the detriment of consumer choice. Through leveraging the brokered identity model
alongside a separation of consumer and agent management liabilities, it is possible to increase the quality of
competition at the consumer level. Figure 11 illustrates a scenario where the presence of a local mobile money
agent would facilitate access to multiple service offerings rather than just the market leader.

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