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Banks have increased their marketing efforts to include the integration of technology to attract a more diverse audience. Through mobile messaging, mobile alerts and SMS alerts, customers are able to become more engaged not only with their institution, but in staying on top of their accounts. UK financial regulator FCA recently announced the strides being made in the industry through the use of SMS alerts that assist customers in reducing overdraft charges. This is one demonstration of how effective SMS services benefit modern consumers who rely on their mobile and smart devices to manage personal tasks which include personal finance, travel, hobbies and entertainment.
How effective are mobile alerts?
Data obtained from 500,000 customers of two large banking institutions support the conclusion that text and SMS alerts are relevant and timely in creating a better banking experience for the modern client.
When this technology was first introduced, the notion of banks using SMS messaging through a single solution or provider was far-fetched. Since that time, text notifications have evolved over the past 15 years from being complex and time consuming to simple and efficient. One of the reasons this has been widely accepted is because banks understood the needs of their clients and seized the opportunity to improve customer service and the overall customer experience.
While the initial introduction of SMS messaging only included basic account balances or ATM withdrawal notifications, SMS alerts quickly evolved into time-critical notifications which included overdraft alerts, payment due dates and additional resources that provided a more efficient and integrative approach to managing personal finances.
How did this work?
The system usually involved separate arrangements between three or four mobile network operators, which all handled their connection maintenance and commercial relationships under different contracts which caused problems in performance and incomplete service with little to no technical support. During this time, banks had limited insight into delivery rates and speed, and real-time reporting was not yet developed so gauging the success rate of delivery and the impact of the messages being sent to the client base was difficult.
New strides in Mobile Alerts
With the development and growth of professional messaging solutions over the last decade, many of the issues surrounding bank-specific requirements have been alleviated. These issues include full transparency, delivery, quality connections, security, advanced sending and database integration. Additional benefits from these messaging solutions providers include extended coverage that allow several networks in multiple countries to be tied to a single connection, professional integration assistance and specialized technical support. This enhances customer service, and provides methods that reach far beyond standard sending and reporting.
By integrating the database of the financial institution with a messaging gateway, event-based SMS sending is enabled. This means that anytime a transaction or activity on a customer’s account raises a red flag, an SMS alert or notification can be sent. FCA research has shown that the immediacy of receiving these messages contributes to effective management of financial records and accounts.
The messaging system is fully programmable, which reduces the complexity involved in back-end operations. As services continue to evolve and consumer habits change, alerting systems are also advancing to accommodate emerging needs and expectations of the client base.
The research indicates that customer saving increases with access to banking applications. By harnessing push notifications to deliver information to smartphones with SMS as a backup option where a mobile data connection is unavailable, banks will be able to ensure their customers are always aware of their financial status.
Recent Enhancements of SMS
In recent years, a number of messaging solutions have been introduced and uses for customer authentication when accessing online services. This is especially important for the banking industry. Seemingly, the best scenario for enterprises is to acquire advanced professional SMS services, authentication options, and push notifications in a complete package that includes guaranteed global coverage, integration assistance and quality support.
By utilizing comprehensive and flexible solutions that cater to more than just one mobile alert channel, this will accommodate the rapidly changing demands and habits of consumers that can be positioned for enhanced growth in the future. SMS messaging, coupled with a viable alert system is an effective method of customer interaction for every day, anytime use to create better service for mobile banking while working in conjunction with other enterprise solutions.
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