How Banks & Credit Unions are Using Text Messaging

When it comes to mediums or channels of communication, text messaging is the most underutilized ways of gathering account information from customers, selling them on new products, and ultimately catering to their needs. In recent studies, it is shown that within the first 3 minutes of receiving a text message, 98% of all text messages are read. This statistic alone uncovers hw powerful text messaging can be for banks and credit unions, alike.

Additionally, we are seeing how financial institutions are getting creative with the ways they use text messaging. While most will offer opt-in options for their customers, which allows them notification features like receiving account updates, there are also many other ways in which text messaging is used in banking.

Account Support & Banking Servicing

Banking account services can be more personalized and streamlined with text message platforms. In fact, aligning with TCPA/FCC rules & regulations, a big concern for compliance officers at these banking institutions, can be a simple procedure built into the customer’s journey. Text messaging gives financial institutions the ability to give up-to-the-minute status updates about their account, make payments, and provide legal statements in messaging formats that make sense to customers.

Digital Loan Applications

Today, loan applications are predominately digital, with user experience becoming the primary focus.  Texting platforms like Elle increase the number of completed applicants for banks and credit unions. The service also provides an efficient and safe way of collecting documents via text that is both secure and TCPA compliant. This allows customers who may not have access to a computer, or who may need step-by-step help with the loan application process, a simplified way of applying for a loan, as well.

Promotional & Sweepstakes Marketing 

For banks and credit unions, marketing just got easier with text messaging. With 98% of text messages read within the first three minutes, customers see promotional messages more often than if they are sent through email and are that much more likely to respond to those offers. This allows financial institutions to make more sense of their data in order to hone in on key factors such as age range, region, and seasonality to achieve their desired outcome.  

These are only some of the ways in which text is being utilized for banking purposes, and it is likely that financial institutions will continue to think outside of the box and integrate even more customized messaging solutions to offsets their biggest pain points.