The use of SMS in Fintech

SMS to streamline financial transactions

SMS plays an essential role in strengthening interactions within Fintech. As a direct and instantaneous communication channel, they enable companies to engage effectively with their customers. From payment or contract reminders to transaction notifications, SMS messages are of paramount importance in keeping customers informed in their financial activities. Many companies in the sector, such as microcredit specialist Finfrog, use SMS on a daily basis.

SMS is also a channel that considerably simplifies financial processes within Fintech. By providing customers with instant access to their financial information, SMS speeds up all interactions. Whether for :

• Fill in forms
• Receive authentication codes
• Validate the electronic signature of a contract

These messages reduce barriers to accessing financial services. By eliminating delays, oversights and friction, SMS improves the fluidity of operations.

Security: the pillar of Fintech, supported by SMS

Beyond its communication function, SMS is a strategic security tool that is proving particularly effective in Fintech. It can be found in many different situations:

 

Two-factor authentication (2FA) :

Users receive a unique code (One Time Password) by SMS, which they must enter in addition to their password to access their account. This adds an extra layer of security by verifying the user's identity, and blocks over 99.9% of account compromise attacks.

 

Transaction confirmation :

This method, well known for online payments, has been replaced in Europe by 3D Secure, but is still widely used by fintechs generating virtual cards. When an important financial transaction is initiated, an SMS OTP is sent to the account holder to confirm the transaction and prevent fraudulent transactions.

 

Electronic signature :

The SMS OTP is very useful for electronic signatures, as it provides a legal guarantee of the signatory's identity and the integrity of the signed document. An OTP is generated for 1 signatory and 1 contract. The signatory re-enters this code received by SMS on the contract. This action is the legal basis of consent for a remote signature.

 

Suspicious connection alerts :

If a suspicious connection is detected on a user's account, an SMS alert is sent to inform the user, enabling him or her to take swift action to secure the account.

 

Notification of an important change to the account :

If a user changes their password or sensitive information, an SMS can be sent to confirm the change. This ensures that the account holder is aware of any changes to their information.

 

Balance or activity alerts :

Users can receive SMS alerts to be informed in real time of any activity on their account, such as a large transaction or a change in balance.

 

Password reset :

This is a more secure alternative to sending a password reset link by e-mail. A telephone number is a better guarantee of identity than an e-mail.

 

Identity verification for customer support :

When a user contacts customer service with account-related questions, an identity verification SMS may be sent to ensure that the user is the account holder.

This extra layer of protection guarantees the confidentiality and security of transactions and sensitive data. SMS thus becomes a reliable shield, helping to build customer confidence in the use of online financial services.

SMS for the Fintech customer experience

The use of SMS in Fintech also offers other significant functionalities for improving the customer experience. Here are just a few of them!

 

Personalization and proximity

Thanks to customizable variable fields and segmentation of the contact base, SMS allows you to play the proximity card effectively. This is particularly valuable in the Fintech sector.

By tailoring messages to customers' profiles and preferences, companies canstrengthen ties and create a unique experience for their customers. This personalization generates a feeling of appreciation and involvement that helps build a solid climate of trust.

 

Proactive information

With its record opening rate, SMS is the perfect channel for notifying and informing, with the assurance of being read. Companies can therefore take a proactive approach by sending messages to inform customers about new offers, policy changes and more. This is an excellent way of demonstrating the company's commitment to transparency and customer satisfaction, while sparing customers any unpleasant surprises. This strategic approach strengthens loyalty and guarantees a positive experience.

SMS as a financial education tool

SMS can also be a good channel for adopting an educational approach. Fintech companies can provide customers with information and advice tailored to their specific needs throughout their customer journey. This approach enables a better assimilation of financial concepts and encourages informed decision-making.

Customers are thus guided through learning stages, boosting their confidence, particularly in understanding complex financial products. SMS thus becomes a strategic awareness-raising tool, leading individuals towards greater control of their financial situation.

In addition, SMS can include links to reliable external resources, such as government articles or reference guides on financial management. This strategy enables customers to deepen their knowledge and acquire the financial skills essential for using financial products.

SMS & Fintech: driving behavioral change

The use of SMS in fintech is therefore not limited to the dissemination of information, but also promotes responsible financial behavior. As a true companion, SMS encourages customers to put what they've learned into practice and use all the functions available. This may involve drawing up a budget, a financial balance sheet or planning savings. Periodic reminders and financial tips via SMS act as catalysts for positive action. This encourages customers to take concrete steps to improve their financial well-being. SMS becomes a driver for behavioral change, transforming financial empowerment into an interactive and dynamic process.

In conclusion, the strategic integration of SMS in the Fintech industry has opened up new perspectives for security, customer experience and communication. By using SMS in a targeted way, fintech companies are creating a virtuous circle that drives both customers and companies to success.