The financial services industry has widely embraced SMS text messaging for customer service as well as internal employee-focused communication, but the technology has plenty more potential to improve organizations’ data security, according to a new study from International Data Corporation.

IDC’s survey, sponsored by mobile-engagement technology company OpenMarket, reveals that the top customer-facing use for text messaging includes marketing offers and notifications of high-risk, high-dollar transactions.

Financial services organizations also are taking advantage of text messaging platforms to communicate with employees.
“These findings revealed that the financial services industry has one of the greatest demands for mobile messaging capabilities and that these businesses are taking a long-term, purpose-led approach to their mobile messaging investment,” said Marc DeCastro, Research Director, Consumer Banking, IDC Insights. “Financial services organizations must look at vendors with a track record of secure encryption, outstanding support and managed services, and the flexibility to provision a variety of use cases in order to meet the specific mobile messaging needs of their internal and external stakeholders.”

Other findings from the IDC study include:

• More than half of organizations use text messaging to differentiate or improve the customer experience

• More than a third (35%) are using text messaging to attract and retain new customers

• More than a quarter use text messaging to improve risk mitigation

• More than 20% use text messaging to ensure business continuity and to enhance multichannel communications

• Only 15% are using text messaging to improve organizational security

The post Consumer Engagement and Security Driving Text Messaging in the Financial Services Industry appeared first on Outsourcing Insights.

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