Uses Cases & Templates for SMS Marketing for Banking

When text messages first hit the scene, the idea of texting with your doctor or bank may have seemed a bit weird. But now, banking customers have come to expect notifications for transactions, fraud alerts, and more.

The truth is that there are several valuable ways to use SMS marketing in banking, and leveraging it the right way can help you ensure a great customer experience.

Benefits and Use Cases for SMS in Banking Video

When & How to Use SMS in Banking

A few of the most important ways to use SMS in banking include:

Transaction Alerts

Allow customers to turn on SMS alerts for every completed transaction. Easily send confirmation of any withdrawal, deposit, or purchase. Account notifications are incredibly helpful for reminding people of recurring payments and identifying fraud early.

Some example templates related to this use include:

• Deposit alert:
  • Hello [Customer's Name], a deposit of $[Amount] has been made to your account ending in [Last 4 Digits of Account Number]. Your new balance is $[New Balance]. Thank you for banking with us.
• Withdrawal alert:
  • Hi [Customer's Name], a withdrawal of $[Amount] has been made from your account ending in [Last 4 Digits of Account Number]. Your new balance is $[New Balance]. If this wasn't you, please contact us immediately.”
• Purchase alert:
  •  “Hello [Customer's Name], a transaction of $[Amount] was made with your [Card Type] card ending in [Last 4 Digits of Card Number] at [Merchant Name]. Your new balance is $[New Balance]. If this wasn't you, please call us at [Customer Service Phone Number].”

Security and Two-Factor Authentication (2FA)

Leverage text messages for greater online banking security and as part of two-factor authentication for online banking apps. Send customers a one-time confirmation code to add a layer of security to their accounts. This helps prevent fraud and increases the perception of security with your bank, improving the customer experience.

Examples to use for banking security or 2FA include:

• 2FA
  • Your [Bank Name] verification code is: [6-digit code]. Please use this code to complete your login. Do not share this code with anyone. Contact us immediately if you did not initiate this request.
• Password Reset Confirmation
  • Hello [Customer's Name], your [Bank Name] password has been successfully reset. If you did not request this change, please call us at [Customer Service Phone Number].
• Suspicious Activity Alert
  • Unusual activity detected on your [Bank Name] account ending in [Last 4 Digits of Account Number]. If this was not you, please call us at [Customer Service Phone Number] immediately.
• Login Attempt Alert
  • Security Alert: A login attempt was made to your [Bank Name] account. If this was not you, please change your password and contact us at [Customer Service Phone Number].

Appointment Reminders

Sending appointment reminders helps prevent missed appointments, which in turn keeps banking customers happier. Use a brief text message sequence to give appointment scheduling confirmations as well as reminders as the day/time approaches. Include the date, time, and location of the appointment in the reminder.

Here are some templates you can use for SMS banking appointment reminders:

• Hello [Customer’s Name] your appointment with [Bank Name] has been successfully scheduled for [Date] at [Time] at [Location]. Please bring your ID, financial documents, and any questions you have.
• Hello [Customer's Name], this is a reminder of your upcoming appointment with [Bank Name]. Date: [Date] at [Time]. Location: [Branch Address or link]. Please remember to bring any required documents. We look forward to assisting you.
• Hi [Customer's Name], your consultation with our financial advisor, [Advisor's Name], is confirmed for [Date] at [Time]. The meeting will take place at [Branch Address]. Please prepare any financial information you wish to discuss. See you soon!”

Promotions and Special Offers

Use text messages to promote products and services, including credit cards, loans, savings accounts, etc. Send exclusive offers via text to encourage customers to take advantage of financial products.

Here are a few SMS template ideas:

• Credit Card Promotion
  • Exciting News! Apply for our [Bank Name] credit card today and enjoy a 0% APR on purchases for the first 12 months. Don't miss out on this great opportunity. Apply now at [Website Link].
• Savings Account Offer
  • Hello [Customer's Name], earn more with [Bank Name]! Open a high-yield savings account and get a 2.5% annual interest rate. Start saving for your goals today. Learn more at [Website Link].
• Personal Loan Discount
  • Need extra funds? Get a personal loan from [Bank Name] and enjoy a special 5% interest rate discount for existing customers. Apply now at [Website Link].
• Referral Program
  • Refer a friend to [Bank Name] and you both get rewarded! Your friend receives a $50 bonus when they open an account, and you'll earn $50 too. Share the good news today!

Customer Feedback

Banks can use text messages to gather feedback from customers. After a banking interaction or transaction, customers can be sent a text message survey to rate their experience and provide comments. This information is incredibly valuable for improving customer service and identifying areas of concern.

Some ideas for SMS templates to use to gather banking customer feedback include:

• General Feedback Request
  • Hi [Customer's Name], we value your opinion. Please take a moment to rate your recent experience with [Bank Name] on a scale of 1 to 5, with 5 being the highest. Your feedback helps us serve you better. Reply with your rating.
• Specific Transaction Feedback
  • Hello [Customer's Name], we'd love to hear about your recent visit to our [Branch Name]. Please share your thoughts on the service you received and any suggestions for improvement. We look forward to hearing from you!
• Net Promoter Score Survey
  • Hi [Customer's Name], on a scale of 0 to 10, how likely are you to recommend [Bank Name] to a friend or colleague? Reply with your score, and if you'd like, share why you gave that rating. Thank you for your input.
• Product/Service-Specific Feedback
  • Hello [Customer's Name], we're constantly working to enhance our services based on your feedback. You've recently used our [Product or Service] and we’d appreciate your feedback on its usability, features, and any suggestions for improvement. Your insights are valuable.

Financial Education

Financial institutions can also use texts to share insightful financial education tips to help customers improve their financial health. This is a simple way to demonstrate industry authority and provide value to customers.

Consider these templates for financial education SMS:

• Budgeting Tips
  • Hello [Customer's Name], managing your finances is easier with a budget. Track your income and expenses, set savings goals, and watch your financial health improve. Learn more financial tips at [Website Link].
• Saving for the Future
  • Hi [Customer's Name], planning for your future is essential. Start saving for retirement or emergencies today. Consider opening a high-yield savings account with [Bank Name] to watch your savings grow.
• Credit Score Awareness
  • Hello [Customer's Name], your credit score impacts many aspects of your financial life. Pay bills on time, and reduce credit card debt to boost your creditworthiness.
• Investment Basics
  • Hi [Customer's Name], investing can help grow your wealth over time. Diversify your portfolio, stay informed about market trends, and consider talking to a financial advisor for personalized investment advice.

Frequently Asked Questions

What are the use cases of SMS for Banking?

Banks can use SMS marketing for several important use cases, including sending security alerts and two-factor authentication, sending account activity notifications, sharing financial education, gathering customer feedback, and sharing promotions/special offers.

What is the best SMS tool for Banking?

Some of the best SMS tools for banking include SimpleTexting, TextMagic, Mobile Text Alerts, and Omnisend.

What are the limitations of SMS for Banking?

While SMS (Short Message Service) can be a useful tool for banking, it also has several limitations, including short character length, security concerns, regulatory compliance, lack of rich media, and opt-in/opt-out challenges.