SMS Text Messaging in the Banking & Financial Services Industry
Can you imagine your life without a mobile these days? In this era of globalisation, it is nigh on impossible to live a normal life without a mobile phone.
Mobiles phones have become so much of a necessity that no business sector can ignore their potential. Out of many mobile communication technologies available, there is one channel that clearly stands out – it’s SMS/text messaging.
79% of businesses think their customers want SMS/text support.
Also, 78% of consumers would like to communicate with a business via text.
The banking industry is constantly facing new competitive challenges to improve margins or to reduce costs. Technology plays a crucial role in enabling banks to reduce costs and deliver better experiences.
In the beginning, banks used SMS technology to deliver core functionalities. Text messages were used to alert customers about withdrawals and deposits only.
With the rise in the mobile users, and considering the perks that SMS provides, banks started adopting SMS banking. Use of SMS in the financial sector enables banks to:
- Enrich customer experiences through authentications, surveys and client services.
- Provide real-time bank updates and alerts of account activity and fraud detection.
- Perform mobile banking and portfolio management through two-way SMS messaging.
- Maintain internal communications in case of emergency alerts, company-wide announcements, time-sheets and HR management.
As a result, the banking industry can count on these key benefits
- Reduced Costs & Healthy ROI
- Improved Customer Loyalty
What is SMS Mobile Banking?
SMS is a short message of up to 160 characters that can be sent from a phone to phone or a web application to a phone.
SMS banking, as the name suggests, is a service which enables customers to perform financial transactions using SMS technology.
SMS banking services may use either pull and push messages. Push messages are initiated by banks without the customers’ request, whereas pull messages are initiated by customers to obtain certain information.
4 Different Ways the Banking Industry Uses SMS
1. Use SMS for real-time alerts
The main concern of any banking customer is the safety of their accounts. SMS is very handy when it comes to notifying time-sensitive and urgent information.
You can use SMS to reduce fraud. Sending alerts to notify users of any suspicious or fraudulent activity can avoid massive headaches for the users who trust your service.
In addition, you can also send automatic alerts of ATM cash withdrawals, negative or minimum balances, overdrafts and any other criteria determined by individual customer needs.
2. Use SMS mobile banking for account management
SMS technology empowers the banking industry to provide services on the go and it is very user-friendly. SMS banking is simple, quick and efficient, and doesn’t even require a smartphone or internet connection.
With SMS banking, account holders can make quick changes to their accounts without having to call the service desk or go online. They can send simple codes and responses to check account balances, transaction history, bill payments and even transfer funds.
3. Use SMS for internal communications
Whether you want to quickly send a company-wide announcement, or update time sheets, or announce an IT system update… SMS bounces in to say hi.
SMS is often only used to engage with customers but it is important to recognise its use for internal communications as well – especially in IT and HR departments.
4. Use SMS to enrich customer experiences
The two main goals of any bank to run a normal business life are – to reduce costs and to provide the best possible customer experiences.
SMS messages can really help improve convenience thereby enriching your customers’ experiences with you. Here are a few examples:
- An added level of security – SMS two-factor authentication helps you to step up your security level by adding another layer. It helps the implementation of Verified By Visa and Mastercard SecureCode program can be done by using SMS. These programs help maintain better confidence in performing internet transaction thereby providing your customers more convenience.
- Customer service – Your customers don’t have time to waste, and when they want to know something very basic – they won’t have to call the service center and wait. SMS enables your customers to simply text a query directly to a dedicated manager or planner and get a response instantly. This way you can save them time, and fuel convenience.
- Feedback and surveys – No one want to do long internet or email surveys. A quick question or two using SMS can really improve your feedback strategy. The average response time for an SMS is 90 sec which is 2400x faster than Email (2.5 days). You can use SMS to collect feedback on specific services or interaction to boost up your future operational activities.
The Key Benefits of Text Messaging in the Banking Sector
1. Cost savings & healthy ROI
- For communications – With the increasing number of mobile phone users, SMS becomes the most popular low cost messaging channel. SMS is direct and non-intrusive which provides you with higher open and response rates than any other available channels at a very less possible cost.
- For marketing – On the other hand, SMS marketing also allows you to send offers and promotions relating to credit cards or other banking services in a hassle free way. It only takes a few minutes to create an SMS campaign, which yields considerably higher ROI than any other marketing activities.
The customer is the king. There’s no better way to appeal to customers than by providing exceptional customer service.
SMS increases the speed of communications either they may be used for internal or external. It provides huge convenience for banks since many aspects of their operations can be automated
SMS provides banks a great deal of convenience by automation of many operations like reminders, alerts, and updates. It also helps reduce human error and enhances the precision of many activities.
3. Improved customer loyalty
The purpose of a business is to create a customer who creates customers.
If you can create a loyal customer you can create more business for your organisation. Customer loyalty is one of the most valuable goals of any organisation.
SMS is simple, easy to use and accessible from anywhere. It’s instant and impersonal nature makes your users feel that you care for them – which in turn triggers responses easily.
This is how SMS helps build the loyalty with your customers.
Would you like to get started with SMS today? It’s very easy to connect to our API and automate your operations. Feel free to try our service and we promise to get the best results with SMS! Get in touch with us and make SMS work for you.