When we talk about the banking and insurance sectors, we mention two sectors that tend to converge at certain points and that sometimes go hand in hand. On the one hand, we refer to all banks; and on the other hand, to the insurance sector, mainly comprised of Social Security and private insurance companies. Both sectors have undergone a profound digital transformation in recent years and therefore in B2C (Business To Client) communication. One of the most important communication channels in banking and insurance are text messages. So if we talk about the customer-company relationship, it is inevitable to talk about the importance of SMS for banking and insurance companies.
Digital transformation in the banking and insurance industry
The banking and insurance sectors have undergone several changes in recent years. Together with the implementation of improvements, both sectors have had to adapt to the new Data Protection Law. Some of the most important changes we can mention are the following:
- Analytics and Big Data: both banks and insurers are facing a challenge when it comes to optimally manage large volumes of information, either from their customers or from their own organization. In most of these cases, the information is sensitive and confidential. Thanks to Analytics and Big Data, new business units are created that help to expand the customer database, collect and manage a large amount of information. All this improves the possibility of offering increasingly personalized services to the user.
- Communication: the way of communicating with customers has changed. The implementation of Apps or A2P (Application To Person) specific to each brand offers a unique and personalized experience for the customer. Digital communication channels such as SMS or Email, have replaced the traditional ones (letters or phone calls).
- Cybersecurity: The investment and improvement in cybersecurity has been considerable since the digitization of the sectors entails the continuous risk of cyber-attacks through different methods. Today we find security protocols in SMS validation processes such as: double authentication (2FA) and one-time passwords (OTP).
Banking and insurance communication solutions
In the previous point, one of the most important changes in the banking and insurance sector has been the way they communicate with their customers. Corporations seek to reach the user in a faster, more fluid and personalized way through A2P applications and other digital channels. Some of the most effective communication solutions that have been implemented are the following:
Notifications and security
- SMS notifications: SMS for banking and insurance is considered the most effective channel for sending notifications to customers due to its high open rate (around 96%). Both banks and insurers send us text messages in the form of notifications, appointment or attendance confirmations, notices of changes, modifications to customer data or user accounts. It is important to mention that as a security measure no bank will send a link or url via SMS. Hackers use this type of method known as phishing to steal data from other people's accounts. Therefore, SMS is only used for warning or informational purposes.
- SMS security: On the one hand there are one-time passwords that provide security for procedures that need to be verified by OTP; on the other hand there is two-factor authentication. Both are efficient measures to protect against unauthorized access or intrusions by other users. Nowadays, all banks have implemented this security system. Two-factor authentication provides a double layer of security. This makes it inaccessible for intruders or hackers to access devices or user accounts. Additionally, it provides a level of access control to sensitive systems and online account data, ensuring their security.
- Text-to-Speech: This is a channel that complements text messaging. It consists of a written message that is reproduced in the form of a telephone call. Its advantage is that it can reach both fixed and cell phones. In this way, it is a communication channel that ideally complements SMS notifications.
- SMS and Certified Email: These are two channels that replace the bureaufax or registered letter and have the same legal validity. They are two efficient channels when it is necessary to send sensitive information or attached documentation of a legal nature with reliable proof. During these last two years of pandemic, they have experienced an exponential growth due to the need to send sensitive documentation when it was not possible in physical means.
- Contracts and digital signatures: Different types of contracts can be sent via SMS and Email. All of them with the possibility of including digital signatures giving the same validity as a contract or physical signature.
Afilnet offers efficient solutions for banking and insurance companies
At Afilnet we have years of experience working with banks and insurance companies. We are fully aware of the importance of having a good communication between the entities and their users. That is why we have the ideal solutions for the banking and insurance sector. While it is true that having the most efficient communication channels is important, securing digital processes is even more important.
As we mentioned in this article, SMS for banking and insurance companies along with Email are the most used channels for their efficiency, immediacy and coverage.
If you want to know more about all our services you can access our website. If you need advice to identify the most appropriate solutions for your business you can write to us.