Providing security for clients is the most important objective of any financial service company, albeit a challenging one. With advances in technology and the onslaught of hackers, the need to supplement traditional security methods is more pressing than ever before.
Fortunately, financial companies are helping their customers fight back by using text messaging. SMS is the most immediate, reliable, and attention-grabbing form of communication there is. So whether it’s for notifying customers of low balances, late fees, or suspicious activities, text messaging offers financial institutions a reliable channel for alerts. Here are a few of the benefits of using SMS messages in the financial service industry.
Improve Customer Loyalty With Two Way Text Messaging
The key to customer loyalty is outstanding service, which includes clear and convenient communication. Fortunately, SMS excels in this area.
Financial services can implement two-way text messaging, enabling customers to quickly text in questions or request information from financial companies, even while they’re on the go. This method of communication is less time-consuming than phone calls or emails, while still being discreet and personal.
Provide Exceptional Security
A report by Juniper Research estimated the projected cost of cyber-attacks to be $2.1 trillion by 2019. This figure would cause anyone to feel insecure about their finances. Using texting, financial institutions can help their customers rest easy, knowing they will immediately be notified of any suspicious activity, decreasing the time it takes to identify fraud and cut the cost of cyber-attacks.
According to Morgan Stanley, 91% of adults have their phone within arm’s reach 24/7. Perhaps that’s why 90% of all texts are read within 3 minutes. This immediacy is what makes texting such an effective force for alerting customers.
SMS two-factor authentication is another measure financial institutions can implement to combat fraud. Whenever a customer has unusual activity, such as a change in account status or a large payment, they will receive a security code through SMS. This means that the next time someone tries to login to their account, not only will they need the password, but they will also need the additional security code.
Increase ROI
What do all businesses have in common? They want to make more money! SMS is significantly easier to use and more efficient than other communication methods, which means sending texts to communicate with your customers will increase your ROI.
Take late notices for example. Emails often go unread for days, leading to copious amounts of staff time being dedicated to tracking down late payments. Phone calls on the other hand are even worse. Reps can only operate a single phone conversation at a time, and they can be intimidating and thus ineffective. Texting strikes the perfect balance between being more casual than a phone call, while still garnering 750% more responses than email, and at a 60 times faster rate.
Reps can also handle multiple text conversations at the same time from the comfort of their computer. With all the time saved, financial institutions will need less reps on hand, cutting operating costs while simultaneously collecting more late payments.
Incorporating SMS into financial services is shown to be extremely beneficial for driving loyal customers, establishing effective communication and security, as well as increasing the ROI of financial companies.
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