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Collaboration: Central to building a well-connected MTO network

Collaboration is a very powerful mechanism for the success of all kinds of businesses, regardless of the industry they operate in. Making connections and forming mutually beneficial alliances is what drives business expansion and growth. 

The benefits of developing business partnerships are manifold. Collaborating with other companies results in venturing into previously untapped markets, acquiring a larger customer base, increasing brand recognition, and expanding the network in the most effective manner possible.

The immense power of collaboration for an MTO

When it comes to a money transfer organisation (MTO), collaboration becomes extremely critical. Considering that a huge number of people use MTOs to transfer money from one place to the other, it is vital that an MTO expands its network through collaboration with other organisations.

Customers expect convenience as well as speedy delivery when they use international money transfer services. These demands have to be met in an optimum manner, and collaborating with other organisations goes a long way in achieving the desired results. On its own, an MTO can only reach a defined number of people but through collaborations with external organisations, this number can increase considerably. 

In a business environment that can be quite competitive, there is no doubt that fostering partnerships is, in many ways, the key to success for MTOs. 

Collaboration helps expand the footprint

It wouldn’t be incorrect to state that the success of an MTO depends largely on its global footprint. Without the additional infrastructure provided by partners, an MTO can reach only a limited customer base through its own branches. Collaboration with other organisations such as remittance companies, banks, agent partners, and mobile providers enables an MTO to expand its footprint significantly. Doing so not only helps it serve a larger audience, it also results in a considerable increase in the ROI too. 

While an MTO can operate through various branches in different countries, there is no doubt that it cannot match the value that other mainstream organisations can offer. For instance, a partnership with a popular mobile operator can help an MTO tap into the large customer base that the said mobile operator has already built. Collaboration helps build cohesion and MTOs can boost brand awareness and compete in markets that are otherwise beyond its individual reach.

Collaboration facilitates financial inclusion

The success of an MTO hinges on its position as an enabler of financial inclusion. Making services available, accessible, and affordable to a vast spectrum of individuals and businesses can be a game changer for MTOs. 

Fundamentally, an MTO looks to improve lives by facilitating easy transfer of money from one source to another. To this end, an MTO can face several limitations when trying to facilitate fund transfers for a global population in the best way possible. While fintech is advancing and providing new ways to address the problem of inaccessibility of services, MTOs fostering partnerships with organisations significantly promotes inclusive finance.

Collaboration with external sources can provide an MTO with access to additional infrastructure and resources that can help them provide their services to a wider customer base. For instance, collaboration with other entities such as banks and agent partners can help an MTO take its services to far-flung areas where it wouldn’t make much financial sense to open a branch otherwise. After all, expanding the business network through partnerships promotes referrals, which consequently helps organisations provide services to people whom they couldn’t reach on their own.

Collaboration helps diversify the range of services

With emerging advancements in technology, MTOs have begun to offer a wide range of services that not only benefit from, but in all effectiveness depend upon, collaboration with others. These days, customers can transfer money electronically via different methods. Without efficient collaboration between an MTO and other organisations, this would not be possible. There are several examples that can be cited to support this fact.

In today’s digitally connected world, most MTOs offer cash-to-mobile transactions. This feat is made possible by partnering with mobile operators who act as a conduit between senders and receivers. Similarly, without collaborating with banks, it would be impossible to facilitate account credit services. 

Collaboration saves money

The premise of collaborative relationships is that they involve splitting both work and expenses. By collaborating with other organisations, MTOs can develop and market their business cost-effectively. Instead of bearing all the expenses alone, effective collaboration can result in an equal investment from all parties involved. By pooling monetary investments and splitting eventual profits, partner organisations can grow and succeed together.

By partnering with reliable organisations, MTOs can attract more customers while infusing additional resources into their business portfolio. The involvement of a collaborator obviously results in the collective pooling of resources to form a greater whole. Furthermore, in addition to both organisations benefiting from the partnership financially, customer footfall and user experience are also enhanced at the same time. Increased footfall and better customer satisfaction are things the MTO, as well as the partner organisation, can gain from. It’s clearly a win-win situation for both. 

Ultimately, collaboration helps drive the network expansion for any business. With varied financial benefits for everyone involved, it makes ample sense to create and foster partnerships with organisations for mutual gain. For MTOs, effective collaboration can result in optimum business expansion and growth. In fact, forming meaningful partnerships with other organisations within the industry and outside of it is what can help MTOs expand their network, drive innovation, and grow successfully.

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Sudhesh Giriyan

Sudhesh Giriyan

CEO

Xpress Money

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25 Oct 2017

Location

London

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This post is from a series of posts in the group:

Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.


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