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:

sales@fortytwo.com

fortytwo.com