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

Table of Contents

Executive Summary

I Security Aspects of Digital Financial Services (DFS)

1 Introduction

2 Recommendation ITU-T X.805 Security Management Standard

3 Components of DFS ecosystem

4 Guidelines for protecting data confidentiality, integrity and availability

5 Conclusion

II Identity and Authentication

Executive summary

1 Introduction

2 What is digital identity?

3 Technology supporting digital identity

4 Digital identities for DFS

5 Digital identity and DFS practical example

6 Digital identity in action

7 Impact of digital identity on DFS and barriers to adoption

8 Recommendations

9 Glossary

Appendix A: Identity architectures

Appendix B: Identity technologies

III DFS Vendor Platform Features

Executive Summary

1 Scope

2 Logic functional diagram of DFS vendor platform

3 Access function

4 Service function

5 System function

6 Reference architecture

7 Interaction with external third party partners

8 Conclusion and recommendations

Annex 1: Glossary

Annex 2: Platform capabilities captured in reference architecture

Annex 3: Reference architecture

IV Technology evolution and innovation in Digital Financial Services (DFS)

Executive summary

1 Abbreviations and acronyms

2 Digital financial services (DFS) technology overview

3 Technologies used to remotely access DFS

4 Mobile phone types used in DFS

5 Mobile phone OSs

6 Stores of value and billing systems

7 Mobile phone UIs used in DFS

8 Digital value chain technologies and transactions

9 Thin SIM technology in DFS

10 Identity verification in DFS accounts and transactions

11 DFS payment infrastructure

12 Conclusion

V Mobile Handset Use in Digital Financial Services

1 Overview

2 Phone types

3 Phone statistics

4 Taxation and handsets

5 DFS and phone features

6 Phone models available in emerging markets

7 Conclusion

VI Distributed Ledger Technologies and Financial Inclusion

Executive summary

1 Introduction to Distributed ledger technology (DLT)

2 DLT designs

3 Key uses of DLTs

4 Smart contracts

5 Challenges in implementation of DLTs

6 Policy, regulatory, and legal issues relating to DLTs

7 Application of blockchain/DLT technology to financial inclusion

8 Conclusions

9 Recommendations

Annex A: How a blockchain operates

VII Competition Aspects of Digital Financial Services

Executive summary

A OVERVIEW

1 Background to the study

2 Approaches to competition issues

3 Roles and responses of regulators in competition matters in DFS

B MARKET ACCESS

4 Market access and licensing

C ACCESS TO BEARER TECHNOLOGY

5 USSD access

6 SIM toolkit access

7 Short code access

8 Quality of service

D ACCESS TO PAYMENT INFRASTRUCTURE & SERVICES

9 Payment infrastructure & services

E ACCESS TO AND USE OF BIG DATA SETS

10 Big data and DFS

F ACCESS TO AND USE OF APPLICATION PROGRAMMING INTERFACES

11 Application programming interfaces

G AGENTS

12 Agents in DFS

H TECHNICAL AND COMMERCIAL RESPONSES TO COMPETITION BOTTLENECKS

13 Thin SIMS

14 Sound-based payment access

15 Java applets

16 Smartphone-based interfaces

17 Mobile virtual network operators

18 New payment rails and interfaces

ANNEX A: Competition Primer