Online banking has grown exponentially in the last decade, and a by-product of online banking is mobile banking. Financial institutions of all kinds, including banks, building societies, credit unions, credit card companies, remittance companies, brokerage firms, and money transfer enterprises can benefit enormously from mobile banking, as can their clients.

There are various SMS banking solutions that are specifically customised for use by the finance and banking industry. The advantages of using SMS for banking purposes include enhanced communication with regards to speed, cost effectiveness, reliability, and unobtrusive messaging. Open and response rates for mobile messaging are far superior to that for email, which in turn is preferred over traditional mail and voice-to-voice calling.

An SMS gateway can be effectively utilised within the financial marketplace for the benefit of both consumers and service providers. This includes using SMS for cross-selling and for prevention of fraud.

Consumers who opt in for SMS messaging are receptive to the medium, it is their preferred method of communication with banking institutions, and over time this will translate to greater use of the services provided. Customers who can self-manage their communications with their financial institution are satisfied customers.

SMS banking solutions can be used in the following ways:

• Notify consumers instantly of account transactions
• Use one time passwords to reduce fraud and theft
• Generate real-time fraud alerts
• Send payment reminders
• Effect debt collection
• Reduce defaulting on loan payments
• Allow customers to monitor their account activity
• Reduce operating costs
• Increase customer satisfaction and retention

Customers prefer reliable information regarding their financial transactions. Invest in an SMS gateway for your financial institution to amplify the satisfaction of your clients and hence to maximise your profitability.