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5 Financial Services Use Cases for Two-Way SMS

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February 10, 2020
By: LiveVox
messaging use cases for banking

5 Financial Services Use Cases for Two-Way SMS

In the financial services industry it can be tough to differentiate your brand because, well, you’re not all that different. Chances are that you offer nearly the same services as most of your competitors do. So how do you stand out in a crowd and give your brand that top of mind awareness that’s key to winning business for life?  

Be the brand that creates demand as a result of being so easy to work with because you actually bring value to your customers. And what adds value? Getting a text notification that branch offices will be closed so the tired new mom doesn’t waste her time driving over to you in person. Or approving the nervous first-time home buyer’s mortgage application while they tap on their phone screen sitting comfortably on the couch.  

Two-way SMS messaging is a no-brainer way to instantly be recognized as a brand that has it’s customers’ interests front and center in everything they do. 

SMS is a Major Value-Add

5 billion people globally send and receive text messages every day. 292 million people in North America — that’s 80% of the continent’s population— text daily. Because most people always have their smartphones within reach, these statistics aren’t surprising. What is surprising is the amount of untapped potential SMS messaging holds for financial services contact centers. 

Being the belle of the ball in an oversaturated market is never easy. To differentiate your brand, focus on what customers want and build strong relationships with them. To that end, you need to clearly state the value-add of doing business with you. Two-way messages are an easy way to create a personalized experience by leveraging what you already know about your customers— that they want to text! 

 You can use the data you collect with each interaction to build on that value and generate new opportunities for more meaningful conversations.

How do you get started? Below are the top 5 use cases for two-way SMS within financial services:

1. Applications & Personalized Offerings

Studies show that consumers are actually willing to provide more information if they know they will receive more custom offerings. Sending a welcome SMS + personalized offerings during the service onboarding is not only a chance to create a relationship with your customer but also gain insight into additional value adds you may be able to provide

2. Account & On-Demand Service

Automatic text reminders can help you reduce delinquency risk and encourage customers to bring accounts up to date on time. 85% of texts are opened within 5 minutes of receiving them, so agent efficacy will skyrocket with the increase in the number of customers contacted per minute. The average length of time for an account resolution call is 6 minutes. The average length of time to receive and respond to a text is 90 seconds. That’s a 5X savings. What could your agents do with that time? 

3. Compliance & Security

To build your SMS messaging database, you first need consent to engage with a consumer. To do so, you essentially need to ask permission from the consumer. Built-in consent mechanisms help you maintain consent across channels in real-time.

Additionally, deploying automated messaging technologies such as bots can be a proactive measure in more quickly detecting risks or potential compliance failures. SMS messages can serve as a convenient two-factor authentication measure, helping you to be sure you’ ’re handling customer information with every precaution necessary.   

4. Upselling Campaigns

You can weave upselling opportunities into two-way messaging campaigns almost too easily it’s like they were made for it. Imagine you have a customer preparing for a vacation and they want to up their credit line in preparation. When they text you to do so, you can seize that moment to suggest special international fraud protections or even offer them traveler’s insurance within the same service interaction. 

5. IVR-Alternative

You can leverage SMS as an alternative to waiting in line. Unlike voice where the service ratio is 1 to 1, SMS allows agents to handle multiple interactions at once, increasing the chance of faster service times for the consumer and enabling them to go about their day without waiting by the phone.

SMS is a conversation starter. Expand SMS to 2-Way interactions as a way to make service available right to your customer’s fingertips 24/7. SMS is one of the fastest-growing channels for business communication because it’s great for building customer relationships. It’s also the perfect tool for streamlining everyday processes and introducing automation. 

Whether you’re an enterprise-sized contact center or a few agents serving a small mom-and-pop shop of financial advisers, the SEC and FINRA regulations are important to keep in mind. Only messaging platforms with built-in compliance-first principles should be used for customer interactions. Encrypted messaging and text message archiving are just two key components to keeping customer information secure and accessible while still maintaining a conversational communication flow.

About LiveVox

LiveVox is a leading provider of enterprise cloud contact center solutions, managing more than 14+ billion interactions a year across a multichannel environment. With over 15 years of pure cloud expertise, we empower contact center leaders to drive effective engagement strategies on the consumer’s channel of choice. Our leading-edge risk mitigation and security capabilities help clients quickly adapt to a changing business environment. With new features released quarterly, LiveVox remains at the forefront of cloud contact center innovation. Supported by over 450 employees and rapidly growing, we are headquartered in San Francisco with offices in Atlanta, Denver, Bangalore, and Colombia. To learn more, schedule a demo today.

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