SMS messaging provides one of the fastest, easiest ways for consumers to stay in touch with businesses. Banking is no exception. Virtually every major US bank now offers some form of text banking.
Text banking is proving popular with a small number of customers who like to stay on top of the finances – and like the fact they don’t need an internet connection to do it. Nonetheless, as many as 51% of cell phone users think mobile banking is not secure, and the number of bank customers who prefer using cell phones to view balances and transactions stood at around 8% in 2012, when the most recent ABA figures were published.
This reticence to engage with text banking is understandable. Fears about sending account details via text messages are not unfounded. And even just using text as one part of mobile marketing tactics that make no specific reference to an account will make some customers jittery. When it comes to personal finances, some people will always prefer the real-world transactions they’re used to.
For people more concerned about convenience than worst-case scenario cyber-fraud, SMS messaging is one of the best things to happen to banking. Apart from the improved customer service texting can offer, it’s also – whatever detractors tell you – potentially far more secure than other typed of banking.
In response to security concerns, most banks have recently designed a whole host of precautions enabling them to minimize fraud and identity theft. Customers are now assigned a PIN they must enter to begin any particular SMS messaging session, as well as nicknames for account numbers.
Leading the way in providing greater security for text banking is Wells Fargo, who were the first bank to make the service available to all customers, even those not enrolled in online banking. Their research indicated customers want to check their balances while on the move, so they implemented a number of codes that customers could text to perform certain transactions. ‘BAL ALL’ lets customers check their balance. ‘ACT’ tells them if a check is deposited. ‘ATM’ points them to the nearest cash machine.
The bank does not send account numbers or passwords, and their Online Security Guarantee promises 100% insurance if unauthorized activity is reported within 60 days.
Other banks have gone further. Both USAA and BOFA allow customers to deposit checks using an iPhone. Not everyone will be comfortable performing such high level transactions remotely. But for those who want that choice, SMS messaging and mobile banking is making life a whole lot easier.