Page 9 - Implementation of Secure Authentication Technologies for Digital Financial Services

Implementation of Secure Authentication

Technologies for Digital Financial Services

3 BACKGROUND

The Financial Inclusion Global Initiative was formed • At time of registration, a DFS operator should
as a follow-on activity of the ITU Focus Group on create a digital identity for its customers, for use
Digital Financial Services (hereinafter, “ITU FG DFS” in both DFS transactions and (where relevant) in
or “Focus Group”) which was established as a multi- identity assertion with external service providers.
party consultative body for fostering the develop- • DFS Operators should ensure an intuitive and
ment of safe, enabling DFS ecosystems. The overall straightforward customer experience for registra-
objectives of the Focus Group were to: (i) increase tion and subsequent authentication.
and formalize the collaboration between financial • Policy makers and regulators are encouraged
and telecommunications authorities with respect to use national identity systems, or other mar-
to DFS; (ii) identify key issues limiting the develop- ket-wide identity systems, to help with opening
ment of safe, enabling DFS ecosystems; (iii) analyse transaction accounts, addressing payments, and,
how these issues have been addressed in practice in some instances, improving transaction security.
and exchange information on best practices; and • App developers should ensure that DFS appli-
(iv) develop policy recommendations for authorities cations are designed and implemented in accor-
and other stakeholders on how to approach these dance with industry and Standards Setting Bodies
issues in their countries. The Focus Group brought (SSB) best practices for secure software devel-
together financial and telecommunications author- opment, including encrypted and authenticated
ities, private-sector stakeholders, consumer advo- communication and secure coding practices.
cates, DFS technical experts, development partners, • Regulators should standardize digital identity reg-
and other key DFS stakeholders to collaboratively istration, and ensure interoperability between DFS
explore these issues and develop consensus recom- operators and service providers relying on the
mendations. [1] digital identity.
This report addresses several of the Focus Group
recommendations, including [1]: The Digital Financial Services ecosystem consists of
users (consumers, businesses, government agencies
• The use of mobile devices that allow for the use and non-profit groups) who have needs for digital
of strong authentication mechanisms to demon- and interoperable financial products and services;
strate ownership of the device is recommended. the providers (banks, other licensed financial insti-
tutions, and non-banks) who supply those products

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