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Fintech companies are now starting to embrace SMS messaging — but a lot of them haven’t tapped into their full potential just yet. They have continued to aim to be accessible for the average customer who deals with banks, and eCommerce stores, and performs transactions on a daily basis by using bulk SMS marketing to send important updates and for account verification.
The way customers communicate with these services, and vice versa is also changing as well. SMS messaging has now become the go-to channel for interactions that need easy, in-the-moment engagement.
Big FinTech Companies That Use SMS Marketing
- Stripe: Stripe is a leading online payment platform. They use SMS alerts to notify customers when a transaction is complete and to send notifications about failed payments.
- Venmo: Venmo is a payment service that allows users to send and receive money quickly. Venmo uses SMS marketing to inform users of suspicious activity, transaction updates, and promotional offers.
- Robinhood: Robinhood is a stock trading platform. They use SMS messages to send out alerts when a stock price reaches a certain level, or when there is an important news announcement.
- Square: Square is a mobile payment platform. They use SMS notifications to inform customers when a payment has gone through, and to remind them to redeem rewards points.
- Chime: Chime is a digital banking platform that offers users a no-fee banking experience. They use SMS marketing to remind users of upcoming bills, account activity, and special offers.
How FinTech is Already Transforming the Communication Using SMS
FinTech is transforming the way we communicate using SMS by allowing companies to use text messaging to send automated and personalized notifications directly to their customers. This makes it easier for companies to communicate with their customers, build relationships, and increase engagement in real time.
Banks and financial institutions are utilizing SMS to send notifications of payments, deposits, and withdrawals. SMS is also being used to send customers their account balances and alerts when their accounts fall below a certain threshold.
By also using 2-way bulk SMS service to communicate with their customers, fintech companies are improving customer satisfaction and loyalty, increasing operational efficiency, and reducing operational costs.
10 FinTech Text Marketing Use Cases to Follow
#1 Automated Account Verification:
FinTech companies can use SMS to quickly and securely verify customers’ identities with automated text messages. For example, Coinbase, a cryptocurrency exchange platform, sends customers a code via SMS when they register for an account. Customers then enter this code as part of the identity verification process.
#2 One-Time Passwords:
Banks and other financial institutions use one-time password solutions to send OTP SMS to customers to securely authenticate their transactions. For example, Wells Fargo sends customers an OTP via SMS when they login to their accounts.
#3 Fraud Alerts:
Financial institutions can use SMS to send customers fraud alerts if they detect suspicious activity on their accounts. For example, Bank of America sends customers an SMS alert if it suspects a fraudulent transaction on their accounts.
#4 Payment Reminders:
FinTech companies can use SMS to send customers payment reminders for loans, bills, and other invoices. For example, PayPal sends customers SMS reminders when their payments are due.
#5 Balance Notifications:
Banks and other financial institutions can use SMS to send customers balance notifications when their accounts are low. For example, Chase sends customers SMS notifications when their accounts reach a certain balance.
#6 Loan Approval Notifications:
FinTech companies can use SMS to quickly notify customers when their loan applications are approved. For example, Lending Club sends customers an SMS notification when their loan applications are approved.
#7 Credit Card Activation:
Banks and other financial institutions can use SMS to quickly activate customers’ credit cards. For example, American Express sends customers an SMS with an activation code when they receive their new cards.
#8 Account Closure Notifications:
FinTech companies can use SMS to notify customers when their accounts are closed. For example, Venmo sends customers an SMS when their accounts are closed.
#9 Promotional Offers:
FinTech companies can use SMS to send customers promotional offers. For example, Discover sends customers promotional offers via SMS when they sign up for an account.
#10 KYC Verification:
Banks and other financial institutions can use SMS to quickly verify customers’ Know Your Customer (KYC) information. For example, TD Bank sends customers an SMS to confirm their identity when they open an account.
The Final Word
SMS continues to evolve, making itself a valuable asset in this era. It is one of the most powerful tools for security and fraud prevention, especially for the FinTech industry where trust is everything to their customers.
With BSG, marketing for fintech has never been easier as fintech companies can get access to an array of SMS features that give them an edge over their competitors and endear them to their customers.
