Page 74 - ITU-T Focus Group Digital Financial Services – Technology, innovation and competition

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

A.5 Brokered credential service providers (CSPs) architecture

In the brokered credential service provider model identification and authorisation activities are left to the
service provider. The CSP focuses specifically on establishing reliable credentials that can be used transactionally
to assert an already-established identity.

Typically, the same consumer will establish a separate credential for every service provider they wish to interact
with. The mechanism for authenticating the consumer in order to forward this credential however may be
consistent regardless of where it is being sent. Consequently, each service provider may undertake parallel
identification activities for the same consumer. Transactions in this model are intermediated via a central hub.

Figure 12: Brokered credential service model

A.5.1 Applications within DFS
Although this model is currently believed to be unique to the Canadian Central Broker Service, other similar
schemes such as those implemented through the FIDO alliance may have beneficial applications within a DFS
environment.
Bangladesh has one of the lowest rates of mobile money usage among women globally (women make up less
than 18 per cent of total digital finance users in the country ). Among other contributing factors, a recent
38
study by CGAP identified low literacy rates as one of the key reasons for this. Schemes such as FIDO have the
39
flexibility to support different user authentication mechanisms via a single point of integration; thus facilitating
an environment where market-appropriate solutions such as biometrics can be universally deployed through
compliance to a single standard, the results of which could enable a reduced dependency on knowledge of a
particular dialect. This could prove particularly useful in countries such as Burundi where (according to the CIA
World Factbook) only 29.7 per cent of the population speak the official language . Users could also benefit
40
from enhanced privacy as credential brokerage services have a higher propensity for personal identifiers
between service providers to be unlinkable.
Although the brokered CSP model can enable certain usability and privacy benefits, it does not provide a holistic
approach to digital identity and in many cases, reduces customer convenience by requiring identification
activities from each individual service provider.

38 http:// www. cgap. org/ blog/ digital- finance- bangladesh- where- are- all- women
39 http:// www. cgap. org/ blog/ digital- finance- bangladesh- where- are- all- women
40 https:// www. cia. gov/ library/ publications/ the- world- factbook/ geos/ by. html

60