Improving customer experience in financial services with SMS
The financial services industry is experiencing a digital transformation, with the rapid adoption of new technologies. Digital platforms are enabling businesses to engage with their customers in innovative and effective ways. A useful channel for this business critical communication is SMS, boasting an impressive open rate of up to 98%.
Dotdigital and Paragon DCX are industry leaders who are redefining the way brands communicate with their customers. One of the ways they are doing this is by using SMS to streamline communication and processes. For instance, organizations like The Co-Operative Bank, Direct Line Group, Swinton Insurance, and Coventry Building Society are leveraging SMS to enhance customer experiences. In this blog, we explore how SMS is transforming customer experience in the financial services sector
How SMS can improve customer experiences in the financial sector
Real time SMS allows businesses in financial services to elevate their customer experiences. Here are some key strategies you can utilize:
Security and fraud prevention
The financial services industry needs to keep customers’ data safe and tell them about possible fraud. SMS goes straight to the point and doesn’t get lost in spam folders. This makes sure customers get important security alerts fast.
In August 2023, The Co-Operative Bank sent almost 500,000 SMS messages to remind customers about the need to stop and think about whether a transaction is fraudulent. The message also provided recipients with the necessary details to contact the Stop Scams UK number if required.
Real time updates and transaction alerts
Financial services need to give customers real-time updates on account balances, transactions, and payment reminders. SMS is almost instant and perfect for this. While email and push notifications can also deliver updates, SMS notifications are more reliable in situations where internet connectivity is limited or mobile data is expensive.
Jane Ball, Senior Marketing Manager at The Co-operative Bank, praised the SMS solution offered by Paragon DCX, in partnership with Dotdigital. She said, “The SMS solution has enabled continuity of our customer communications, ensuring timely, reliable, and efficiently delivered messaging.”
Two-factor authentication (2FA)
Two-factor authentication is important for keeping customers’ financial information safe and secure. Sending one-time passwords (OTP) or unique codes through SMS lets financial services providers confirm customers’ identities and keep things safe.
High engagement and customer satisfaction
SMS allows financial service businesses to improve customer engagement by keeping them informed about new products, promotions, and policy updates. Unlike traditional email newsletters or app notifications that might get lost, SMS messages are concise, personalized, and more likely to capture the recipient’s attention.
Cost-effective customer support
Financial service businesses can use SMS to offer fast, inexpensive customer support and cut down on call center volume. SMS can send automated replies, confirm appointments, or follow up at a lower cost than phone support.
Regulatory communication
Financial services can use SMS for important alerts like overdraft alerts, insurance renewal reminders, and interest rate changes. While emails can work for this kind of information, SMS can also remind customers to check their email for critical, time-sensitive messages.
Final thoughts
SMS is a powerful tool for the financial services industry to make customer experiences better. Using SMS in communication strategies helps financial service businesses improve customer satisfaction and success. By using SMS, financial service businesses can continue to do well in the digital age.
If you want to learn more about using SMS for important, time-sensitive messages, reach out to Paragon DCX to see how our combined services can help you talk to your customers quickly and effectively.
