Importance of SMS services for Banks

Consumers nowadays are technically sound. As a result, modernizing the banking sector’s procedures is critical. With the increasing use of the latest technologies and advancement of network carriers, it is important to use them as an advantage for any sector. Banks may do this by leveraging technology and techniques such as SMS. Mobile has become one of the most personal communication methods, and an increasing number of businesses are integrating two-way messaging to increase consumer contact and internal communication to obtain a competitive advantage in an oversaturated market. SMS texts are a wonderful approach to inform customers about your products and services. Here are efficient methods for banks to use SMS.

Automated Alerts

1. Even in the event of a network outage, critical information may be immediately delivered. With the bulk SMS tool, you may automatically warn consumers of potential bank login, fraud, or account verification issues. This approach is faster than manually phoning customers.
   
   
2. For example, Banks can automate calls, send regular updates of accounts, etc so as to keep alerting consumers for regular monitoring of their respective accounts.
   
   
3. Regular Automated alerts make the end consumer more alerted/aware of their financial activities.

Transactional SMS

1. When a bank sends text messages to its consumers in order for them to use their services and goods, they are employing transactional SMS or A2P SMS (Application-to-Peer SMS). Transactional SMS provides banks with an efficient, cost-effective, and non-intrusive approach to improving communication.
   
   
2. Banks, for example, can use transactional SMS to communicate directly with clients about crucial information. Low balance, check deposits, bank statements, or privacy policy alerts are examples of important notifications.
   
   
3. Transactional SMS is also a simple way to contact clients all over the world so that they may check their account balances and make deposits. Transactional SMS may give this ease since it can connect to any network on the globe. Due to this its reachability is golden and should be leveraged to reach out to maximum ranges.

Payment Reminders

1. SMS is one of the most efficient means of connecting with clients, with a 98 percent open rate, and might even be beneficial for contacting them fast. As a result, it may be the most effective method of informing customers of unpaid transactions or past-due bill payments. Banks are more likely to receive payments on time if they receive SMS reminders on a frequent basis.
   
   
2. From a Customer’s perspective, they may benefit from it since they are less likely to incur late penalties. As they get reminders they can be on track with their dues.
   
   

Two-factor Authentication

1. Using two-factor authentication, or 2FA, banks may employ SMS to tighten their security measures and authenticate customers for account logins and transactions. Two-factor authentication (2FA) is a security mechanism that adds an extra layer of security for users who wish to log into their accounts, transfer money, or conduct other operations. It is used as one of the most secure forms of verification in modern times.
   
   
2. How it works – To obtain access to their accounts using two-factor authentication, users must have at least two out of three credentials. These credentials can include a one-of-a-kind personal identification number (PIN), a device, such as a customer’s mobile phone, or a biometric, such as the customer’s fingerprint.
   
   
3. For example, following an account login from an unauthorized computer, the bank can utilize SMS to transmit a unique PIN code to the account holder’s mobile phone number before allowing a money transfer. After entering the specific PIN number, the account user may complete the transaction. The account holder may also limit incidences of illegal transactions by utilizing the PIN code. Fraudulent activities can be reduced using such authentications.

One-time Password

1. One-time passwords (OTPs) are randomly generated temporary passwords that bank clients can use to provide an extra degree of protection to their online transactions. OTPs are more secure than user-generated passwords. OTPs are more secure since banks may send them to approved devices and keep them valid for a specific period of time, such as 30 seconds. Banks, for example, can produce an OTP through SMS that a bank customer must enter at the end of his password in order to get into his account.
   
   
2. OTPs can also be used to assist consumers in resetting their passwords. Banks may simply provide these temporary passwords to clients who have forgotten or need to update their passwords by SMS. Thus, easy and simple way to overcome one of the biggest issues of online payment methods.
   
   
3. As a result, OTP (one-time passwords) is a game-changing technology that should be exploited to increase user convenience while also increasing security. As a result, it is critical for banks to use OTPs.

Increase Fraud Prevention

1. The most important sector which needs fraud prevention is the financial sector or basically the Banks. Fraud prevention is a security approach that banks may use throughout their operations to assist protect their clients’ accounts against fraud, data loss, and security breaches. SMS can help with two-step verification, which can help with fraud protection.
   
   
2. Banks can utilize SMS text messaging to verify user information and transactions by providing a PIN number that expires in a short period of time to guarantee the user is the account holder or to approve a transaction.
   
   
3. For example, To confirm that a debit card payment was allowed at an e-commerce site, banks can send a text message alert to the account owner.

Promotional activities

1. SMS is simple, easy to use, and available from any location. Its impersonal and immediate character gives your consumers the impression that you care about them, which readily inspires replies. After an agreement, a pleasant thank you note or follow-up will assist you to enhance client relations. Thus, increasing trust and forming bonds with customers just got easier.
   
   
2. SMS may assist banks in marketing their products and services to present and new clients. Banks can utilize customer-specific data to highlight items and services that current customers are likely to use.
   
   
3. Banks can send personalized messages to new and potential customers that include a direct link to the product page which helps in easy yet effective promotions.

By using SMS services it gives the banks the ability to expand to address new customer journeys, take advantage of new technologies, or gain feedback on a new service, they are well-positioned to address anything that the future has to offer and make sure they are offering exceptional experiences to the customers. SMS offers several potentials for the banking industry to improve the client experience, including fraud detection and account authentication, promotional channel, etc. If you would like to get started with SMS today we are just one call away. Feel free to try out our services and we promise to get the best results with SMS services. We also have a Java-Based SMS Application, a specially developed message-sending application that enables you to send text messages from your database server and maintain real-time delivery reports.