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Intermediaries

 
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Intermediaries are described here as organisations from the private or voluntary sectors offering services targeted at and tailored to chosen groups of customers, this may be consumers or businesses.

They offer access to public sector services on behalf of their customers, potentially including new services which are based on a government component. Intermediaries, as outlined here, thus clearly differ from those contracted to deliver services on behalf of government.

The figure below illustrates the difference between intermediaries contracted to deliver services on behalf of government (government commissioned intermediaries) and intermediaries as defined in this paper (customer commissioned intermediaries).

Diagram - the difference  between government commissioned intermediaries and customer commissioned intermediaries

The difference between government commissioned intermediaries and customer commissioned intermediaries

The concept of intermediaries is not new. An example from everyday life is the role of supermarkets intermediating for banks. It has become a well-known and welcome fact that supermarkets (commissioned by their customers) offer cash-back facilities for their customers. By doing this, they become in effect the front-end delivery channel for their customer's bank.

Intermediaries may become involved in the delivery of public services in a variety of ways. The various types of intermediaries are illustrated below.

Types

Intermediaries can simply, without modifications, add a government service to their product range. This is described in the case of current organisations serving motorists.

Simple Transaction - Motorist Organisation

A motorist services company might want to add Vehicle Excise Duty (car tax) to their portfolio. Their offer becomes more of a "one-stop-shop" and is likely to increase customer loyalty, or attract new customers to the service.

In a more complex case, an intermediary can provide legal representation e.g. a financial advisor who represents a citizen at the Inland Revenue and adds expert knowledge to their customer base.

Expert Advisor Case - Financial Advisor

Existing intermediaries, such as accountants, already use their expertise to discount rules and procedures that do not apply to a particular client's financial affairs. They have become experts in government and the related law, proactively seeking out better outcomes based on awareness of the current and changing environment (e.g., new laws and regulations).

Intermediaries can also use a government information asset, such as Ordnance Survey data and turn it into a new, value added service for their customers. Companies like streetmap.co.uk have followed this path. (See box C).

Information Asset

Streetmap.co.uk licenses data from Ordnance Survey and, by integrating it with a range of other value added services such as Business Web Pages (e.g. nearest store locator), turns it into an attractive proposition to their customers.

These examples are not exhaustive but are meant to illustrate how intermediaries can play a part in the delivery of public services.

 

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