SMS Messaging, Fraud Prevention
and Financial Services
The widespread use of mobile phones and the advent of
smartphones have led to a digital revolution worldwide.
The forecast for the number of mobile phone users is set to reach
4.77 billion by
2017
The rapid development of mobile technology
has transformed consumer expectations and
the way customers connect with brands
70% feel that using an SMS is
a good way for an organisation
to get their attention
76% report that they are more
likely to read a message
sooner if it's an SMS text
message than if it's an email
64% of consumers think that
businesses should converse
with customers more often using
SMS
According to a recent global study on consumers, conducted by SAP
Businesses across a broad range of
industries are now using SMS alerts to
keep customers informed and engaged
with the brand.
The finance sector is no different and has
seen tremendous growth in the last few
years.
66%of mobile users have carried out
some form of bank transaction via
mobile
69%of mobile users have carried out a
banking activity via mobile
With the increasing ubiquity of mobile
technologies, it is clear that financial
services stand to benefit from this
powerful technology and
ARE USING SMS
Uses
- Reduce theft and fraud through
Two-Factor Authentication (2FA)
- Generate real-time transaction
alerts
- Improve customer experience
with timely service notifications
and payment reminders
Fraud
PreventionFinancial institutions
can use SMS alerts
to add value for their
customers
Payment
remindersSMS messaging can
remind customers of
upcoming payments
and past payment due
dates.
Service
notificationsUse SMS alerts to
offer real time
customer service
notifications
There are many ways that companies in the finance industry
can use SMS alerts to boost customer engagement, increase
brand loyalty and offer greater value to their customers.
Brand
loyaltyUse SMS alerts to
establish routine,
low-cost interactions
with customers
Fraud prevention is one of the primary ways that
financial institutions can use SMS alerts to add
value for their customers.
With Two-Factor authentication (2FA), financial
services can add an extra layer of security by
sending a one-time password (OTP) directly to a
customer’s phone, further preventing unauthorized
access.
In addition, SMS alerts allow financial institutions
to quickly notify customers as to any unusual
activity so the customer can react immediately to
any irregularities in their accounts.
With SMS messaging, customers gain control of
account monitoring which helps facilitate their
involvement in the fraud prevention process. Not
only does this add value for the customer who can
now stay more up-to-date with their account
details, but can also save the financial institution
on costs.
Security is paramount
SMS messaging can be used to remind customers of upcoming
payments and past payment due dates, allowing financial
organisations to connect directly with their customers and send timely
notifications straight to the customer’s phone.
An SMS text message can also include links to electronic payment
options, providing a very convenient and non-intrusive payment
method for the customer.
It has the additional advantage of helping customers to stay on top of
timely payments and avoid additional fees or negative repercussions
resulting from late or missed payments
Offer payments
reminders
Financial institutions can use SMS alerts to offer
customer service notifications across a broad
spectrum of time critical information including
• Changes in policy affecting the consumer
• Interest rates
• Account activity
• Account balances
• Exceeded limits
• Lost or stolen cards.
Deliver real time
service notifications
SMS messaging is a great opportunity
for businesses to increase their
loyalty with customers. Since
customers depend on timely
information to manage their financial
accounts, financial organisations can
use SMS alerts as a way to establish
routine, low-cost interactions with
customers which helps them build
relationships with their customer
base.
In addition, SMS alerts can be integral
to a customer loyalty program
providing rewards such as credit card
points by using monthly SMS alerts
rather than traditional paper
statements.
Brand loyalty
With tremendous growth in
the last few years, it is
evident that SMS mobile
messaging has become one
of the most useful tools in
the finance sector. $
€
£
Consider your financial services
communications strategies and how the team at
Fortytwo can help you.
Contact us:
fortytwo.com