Case Studies in SMS Banking Solutions

SMS solutions for banking and finance

Financial services institutions (FSIs), such as banks, credit card companies, brokerage firms, and money transfer and remittance companies can all benefit from mobile banking, and more specifically from an SMS solution tailored for the banking and finance industry.

The best practice use of SMS in the consumer banking market include:

  • Drive adoption of the mobile delivery channel
  • Open the mobile channel to all customers
  • Utilise SMS for cross-selling
  • Leverage SMS for fraud prevention.

SMS solutions offer numerous advantages for banking and finance compared to other forms of communication including speed, reliability, cost effectiveness, and non-invasive messaging.

FSIs that have implemented SMS strategies have reported three consistent conclusions:

  • First, opt-in customers, by their nature, are receptive to SMS communications, and will increase their usage of banking products and value added services over time.
  • Second, FSIs can expect a reduction in call center contact once customers link balance alerts and event alerts to banking activities, and this channel migration will also lead to significant cost savings.
  • Finally, empowering the customer to self-manage the timing and type of communications will help to enhance customer loyalty and retention[1].

Primarily, customers are looking for real-time, reliable information on banking transactions. With SMS, banks are able to notify customers immediately of account transactions via an SMS to their mobile phones. This type of immediate communication has a flow on effect including increased customer satisfaction and retention, a dramatic reduction in fraud, increased revenue and decreased cost, increased brand awareness and recognition.

SMS messaging solutions are used in banking and finance to:

  • Reduce theft and fraud through one-time-passwords (OTPs),
  • Generate actionable, real-time transaction and fraud alerts,
  • Reduce cost-to-serve customers with timely service notifications and payment reminders.
  • Debt collection on delinquent and other accounts for credit card payment, house loan and other loans.
  • Improve likelihood of loan payments being made on time through message reminder system. There is also the option to generate delivery receipt notifications for proof of delivery of message to provide absolute assurance that the message is getting through

Giving clients up to the minute information about activity on their account also allows customers to monitor and detect any fraudulent activity in real time.

This real-time requirement means that messages must be delivered immediately which requires a service provider that delivers on a completely reliable and fully redundant network.

See why the leading banks have chosen MessageMedia as their SMS provider.

[1] European Journal of Business and Management Vol.6, No.31, 2014 SMS and customer satisfaction in the banking industry