Page 18 - The Digital Financial Services (DFS) Ecosystem

ITU-T Focus Group Digital Financial Services
Ecosystem

The end users and providers of the digital financial ecosystem meet in the provision and use of the actual
digital financial services: these services then support the use cases within the ecosystem.

The end users and providers of the digital financial ecosystem meet in the provision and use of the actual
digital financial services: these services then support the use cases within the ecosystem.

Digital Financial Services include:

• Transaction Accounts for the safe keeping of funds: these include both bank accounts and eMoney
accounts. Deposits into a bank account create a liability by the bank to the account holder: this liability
is often guaranteed or insured by government agencies. Deposits into an eMoney account (by definition
from a non-bank provider) create a liability by the provider to the account holder: this liability is usually
covered by a regulatory requirement that the provider hold funds, in aggregate, in an escrow or trust
account at a bank. eMoney accounts and bank accounts are both considered “Transaction Accounts”
within the ecosystem.

• Payments Services: the ability to transfer money into or out of an account: this may be done through
a variety of different payments systems and providers. Remittances, transfers, merchant payments, bill
payments, etc. are all examples of payments. Payments may be domestic or cross-border. For the purpose
of this report, we concentrate on digital payments: payments initiated or processed electronically, rather
than by paper. Bank ACH and RTGS systems, eMoney transfers, and card payments are considered to be
digital payments.
• Savings Accounts: services designed to allow consumers to set aside some funds in storage for intended
later use. Savings products typically offer some type of interest rate or return. Some savings services have
shared or club-like characteristics.
• Investment Services designed to allow consumers or businesses to invest for future financial return.

• Loans: this term encompasses a broad variety of services to extend credit to consumers or businesses.
Micro-finance, secured and unsecured lending, and mortgage financing are all included.

• Insurance Services: this term encompasses a broad variety of services to enable consumers and
businesses to protect lives and assets.

Use Cases are the situations in which consumers and businesses consume or require digital financial services.
A given use case cases may be satisfied by a variety of different digital financial services. Many use cases have
two end users: for example, in a “paying bills” use case, both the consumer or business paying the bill, and
the biller receiving the payment, are involved. Use cases include:

• Storing Funds – the need to keep funds safely.
• Paying for Purchases – the ability to pay for goods and services purchased: the purchase may be done
either locally (“face to face”) or remotely.
• Paying Bills – the ability to pay for services delivered upon receipt of a bill.

• Sending or Receiving funds – the ability to transfer funds to and receive funds from another end user
(person or business).

• Borrowing – the ability to borrow funds for later repayment.
• Saving and Investing – the ability to have a short term liquid to semi liquid investment such as an eMoney
account, savings account or group savings, and the ability to invest funds for future financial return.

• Insuring Assets – the ability to insure lives or assets.
• Trading – the ability to participate in international trade through the use of digital financial services

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