FinTech Aggregators


In FinTech domain considering vast types of service bouquet there is a need to have strong eco system between multiple stake holder.
Aggregator is the word visualized first when building eco system of stake holders in general. And this Aggregator role is context driven since there are multiple types and levels of aggregator presence is possible. 

This article attempt to bring multiple roles and aspects where aggregator presence is possible in FinTech eco system. 

General high level eco system of FinTech is provided in below diagram 

Eco-system-FinTech Fig: Typical Eco-System

 

  • Customer would want to access solution for financial services.
  • Customer him/herself would be user in case of channel directly accessible, in cases like agent assisted model. Customer will access financial services through Agent, as a user to solution
  • Accessing services though channels, example Web, Mobile, USSD, POS etc.
  • Fintech solution would be financial service providing system to user/customer, which internally form eco system involving other service provider, switches, utility services or partnership with other FinTech solutions. 

From this high level there are multiple aggregator roles possible for end to end solution, and below table is not limited there could be multiple innovative option one would get to form beneficial eco system involving aggregators, 

Eco-System Elements

Aggregator

Description

Customer aggregator

Collecting customers and forming logical user base. E.g. Students from a college, Formers of association.

This will be logical aggregator of customers

User aggregator

Collection of users with defined service offerings. E.g. Bill collection agents, Service agents, customer onboarding agents. Distributors of particular geographical zones

FinTech service provider aggregator

Service aggregator providing recharge, bill pay, money transfer, cash-in/out, premium collection, customer onboarding

Specialized service aggregator

Specific service aspect, which is not necessarily direct financial service, e.g. Biometric authentication, vehicle registration, Credit/Debit card authentication, AML/Fraud detection analytics engine, Loyalty system provider, virtual card vendor

Channel Aggregator

Services offering seamlessly through multiple channels like Web, Mobile App, USSD like channels

Utility service aggregator

Notification, branding, marketing, customer communication like utility service aggregator as one solution

External Fin Tech aggregator

Core Banking system, Bank switch, Card switch, Insurance companies, international transfer switch across countries, mobile wallets, closed/open value stores

Pre paid voucher vault distributor

Integrated pre paid voucher re-distribution service providers, so that would become single point of contact for multiple pre paid voucher vaults

Ticketing aggregators

Integrated aggregators for multiple ticket issuing services

The advantage to form eco system with aggregators is multi folded 

  • Regulatory / Legal sign off, since aggregators would have crossed the step to have regulated offering
  • Technology know how independence, multiple interface connectivity, mechanism, infrastructure, specification would now reduced only to aggregator integrations
  • Reducing cost opex/capex both – customer base, solution, infrastructure cost reducing by default for this advantage
  • Operational efficiency – sharing burden of customer, system, infrastructure management with aggregator
  • Innovativeness – where it is not possible to for innovative new solutions on own, where as forming eco system with aggregators would bring this 

In addition to aggregator there are other roles which are important to form eco system 

  • Solution provider – provides the solution and transfer the ownership to service provider but will not be part of the eco system in the run time
  • Solution / system integrator – contribute in building the eco system and transfer ownership to solution provider after building integrated solution, but will not be part of the eco system once built 

At Teknospire we believe in forming efficient eco system in multiple ways of with roles

  • Becoming service aggregator
  • Channel aggregator
  • Solution provider
  • Technology provider
  • Solution integrator

and believing in win-win situation creation without creating business conflicts with other partners and aggregator solutions. 

With this approach could able to establish considerable and sizable offerings across African countries as live case study with our NDASENDA flagship product. 

Author :

Pranesh P: Chief Technology Officer at Teknospire

Share this post