SMS Banking for New Revenue Streams and Enhanced Security
Banks and other financial institutions are seeking new revenue streams and ways to strengthen their existing revenue streams. Fortunately, financial SMS messages have demonstrated their ability to help generate payments, attract existing customers to new services, and ensure that any activity conducted online or through mobile finance tools are secure.
Generating Payments
Mobile payments have simplified the world of purchasing around the world. Customers can wave their phone in front of the credit card payment reader and instantly pay for groceries, clothes, and other merchandise. Mobile tools can also be used for a wide range of financial services.
Through the use of buttons and other rich media tools, banks can send invoices and payment requests with Pay Now buttons. Bank customers can easily click on a designated button, and use their credit card or other payment method already stored in their phone to make the payment.
This method can work with monthly payments, such as a mortgage, or one-time payments for different financial services.
Upselling Financial Services Customers
Banks and other financial services companies can also use SMS and one-time password (OTP) codes to help existing customers open new accounts, sign up for new services, or take on new loans.
There are two steps this process, which requires two-way messaging capabilities. First, the bank creates and sends out a compelling offer to its customers. Ideally, this offer includes a button, simplifying the customer’s ability to indicate that they are interested. Using Unique URLs and trackable links, the banks sales team can track the customer journey, nudging them along their decision making process.
Once customers indicate that they are ready to try the service, the bank generates an OTP password and sends it over SMS, which helps to verify the customer identity. Once verified, the financial institute can guide the customer through the new service, using automated chatbots and buttons that simplify customer participation.
Customers can sign up for the services that they need, while banks increase customer stickiness and revenue through the new services.
SMS Banking
Banking over SMS is one form of mobile banking. Customers can easily perform some financial transactions through their SMS. There are several types of services that can be delivered over SMS. Push services are those services which are initiated by the financial institution.
These services include:
- Monthly account balance reporting
- Salary and other deposits into the account
- Successful or unsuccessful execution of a standing request, such as an automated phone bill payment
- Successful payment on checks that were issued by the account holder
- Insufficient funds
- High-value withdrawals through an ATM or bank transfer
- Large purchases using a credit card
- One-time passwords and authentication
- Payment due alerts
- Notifications that an e-statement has been prepared and is ready for download.
Pull services, on the other hand, are those services that are generated by the customer or user sending a message to the financial institution. These services include:
- Account balance inquiries
- Mini statement requests
- Electronic bill payments
- Transfer between accounts owned by the same account holder
- Stop payment requests on a check
- Requests for a debit or credit card to be suspended
- Requests to deactivate a credit or debit card
- Foreign exchange rate inquiries
- Interest rate inquiries
When done over secure, encrypted SMS, these services are fast, convenient, and easy to complete.
Ensuring Security for Accounts
SMS banking has been viewed as somewhat unsecure in the past. However, today’s secure OTP messages delivered by MessageWhiz are fully encrypted to protect against identity fraud and keep accounts safe.
Each MessageWhiz SMS message can be encrypted, which stops anyone along the route from intercepting, hacking into the message and spoofing or manipulating the content of the message for malicious purposes.
This way, SMS for banks and other financial institutions are entirely safe. Banks can safely and confidently send 2FA OTP messages and share sensitive information over the MessageWhiz platform.
Learn more about MessageWhiz services for banks and financial institutions.
FAQs on SMS Banking
What is SMS Banking?
SMS Banking is a service that allows customers to perform a variety of banking transactions and receive information about their accounts via text messages (SMS). This form of mobile banking uses the SMS protocol to provide quick, secure, and convenient access to banking services without the need for internet connectivity or a mobile banking app.
What is the role of SMS in customer service for financial institutions?
SMS can enhance customer service by providing quick responses to inquiries, sending important notifications, and facilitating interactions with customer support teams. Automated responses and chatbots can handle routine queries, while more complex issues can be directed to live agents.
What types of promotional offers can banks send via SMS?
Banks can send various promotional offers such as discounts on loans, special interest rates, credit card rewards, and exclusive banking services. These offers can be tailored to individual customer preferences and behaviors.
How can financial institutions use SMS to improve customer engagement?
Financial institutions can send personalized messages, offers, and updates to keep customers informed and engaged. By using SMS, they can ensure timely communication and provide valuable information such as account updates, promotional offers, and reminders.
How does SMS help in preventing fraud and enhancing security?
SMS can be used for two-factor authentication (2FA) and sending OTPs, which adds an extra layer of security to customer accounts. Encrypted SMS messages ensure that sensitive information is protected from unauthorized access.
How can SMS help in managing loan repayments?
Banks can use SMS to send reminders for upcoming loan repayments, provide updates on loan statuses, and offer options for making payments directly through SMS links. This helps customers stay on top of their repayment schedules and reduces default rates.
How can financial institutions ensure the reliability of their SMS services?
Choosing a reputable SMS service provider like MessageWhiz ensures high deliverability rates, secure message encryption, and reliable support. Regular testing and monitoring can also help maintain the reliability of SMS services.
