Why Is Client Messaging Effective For Banking?
Since instant messaging has become so widespread over the past few decades, it makes sense that the financial industry would start using it to improve internal and external communications.
While instant messaging does come with a few caveats ‒ such as the need to ensure that it is secure, private, and compliant with financial regulations ‒ it is no doubt a powerful way for financial institutions to enhance client relationships and improve their service delivery capability.
Real-Time Communication Capability
One of the many frustrations that banking clients frequently cite is a lack of instant access to customer service when needed. According to Zendesk, 70% of financial services customers want instant service, with 62% expecting a seamless integration between the real-world and digital-world banking experiences to facilitate this.
Client messaging solutions can address this need by providing a means for clients to enjoy instant, real-time communication with their bank or financial advisor. This enables clients to manage their finances more effectively and alleviates anxiety by providing immediate information when needed.
Research has shown that the more satisfied clients are with the speed and quality of service they receive, the easier they are to retain. As many as 70% of consumers view this as the most important factor for ensuring brand loyalty.
Enhanced Data Security and Compliance
It might seem counterintuitive to suggest that instant messaging can lead to enhanced data security and regulatory compliance in the notoriously stringent financial sector, but it certainly can.
Over the past decade or two, financial sector participants have increasingly been turning to noncompliant instant messaging services, such as Whatsapp or Facebook Messenger, to do business. Because of the unofficial nature of the majority of this transition, fraudsters were able to take advantage of gaps in the technology while record-keeping and data management were compromised.
In fact, in 2022 alone, the USA’s Securities and Exchange Commission had to issue an astonishing $1.8-billion in fines to financial services companies for using non-compliant messaging apps to do business.
However, instant messaging services have evolved. Today, messaging switchboard services, like the kind offered by Message Matrix, are specially formulated to ensure enhanced compliance.
By using the right kind of instant messaging tools, banks can actually keep more accurate records of client communications, behaviours, pain points, product interactions, and more. Every interaction can be recorded and archived. This can be a highly valuable source of information for all parties involved, including the bank, its clients, and financial sector regulatory authorities.