With an expected 90% of the world’s ‘online population’ using messaging apps in 2018, nobody can deny messaging has become one of the most popular ways to communicate. Recognized as a simple and immediate way to interact, messaging has evolved from one-to-one and group communications to convenient platforms enabling further value-added services. The best example of this shift is the Chinese messaging app WeChat, one of the world’s leading messaging app with more than 800 million active users. First released as a classic messaging app in 2011, it then added services on top such as the possibility to book your doctor appointment, publish advertising or simply pay your groceries. These additional services played a major part in driving the app’s popularity.
In the context of the financial services industry, banks need to communicate with their customers on a regular basis. In this sense, messaging as a platform should also be applicable and represent an opportunity to better serve clients. Digital and mobile banking are nothing new but innovations from the consumer world are driving sky-high customer expectations around how services are offered and how customers expect to interact with their financial service providers.
Like in the consumer world, messaging can be the base for more value-added services in financial services. As a matter of fact, several existing services and innovative technologies are well suited to be used in a messaging context. For example, chatbots, software programs that execute simple tasks (locating branches, displaying transaction history, etc.) and attempt to interact like a human would, or Artificial Intelligence (AI) programs that can automate financial or investment advice. Applied in a messaging context, it can provide highly valuable services for clients and, arguably, a far better experience than going to a branch.
A few examples of valuable services which could be enabled by messaging are:
– Customer help desk: financial services’ bots can help customers with inquiries and simple transactions such as setting card limits.
– Payments: requested directly from the messaging app (i.e. money transfers).
– Loans: when a client is interested in applying for a loan, the bank can use a bot via messaging to automatically advise on loan amounts and rate, etc.
The benefits of these services over messaging are multiple; from reducing customer service costs to increasing cross-selling revenue opportunities. However, in order to be fully realised certain conditions need to be met. First of all, the messaging channel needs the appropriate security and compliance to meet the banking standards as well as the appropriate regulatory requirements. When dealing with regulated information, all information exchanged needs to be encrypted and all communications need to be recorded by the financial institutions in order for the services to be regulatory compliant.
Financial services providers looking to exploit messaging as a platform should consider the additional benefits of being able to offer these services over the customer’s favourite messaging apps. WhatsApp, WeChat, Line and FB Messenger dominate customers’ screen time, so enabling interactions over these channels is a sure way to maximise customer engagement.
One effective approach to combine messaging as a platform while leveraging popular consumer messaging apps is through a data-centric approach to security. In such a model, the data is secured at the byte level making it independent of the application it is used in. In other words, the data can be secured independently of the messaging app the customer chooses.
If you would like to learn more about our security offering for messaging, please contact us.
Digital Security Perfected – APrivacy Ltd. is an award-winning company which combines military-grade data security with a seamless user experience on any platform, any device, anywhere. APrivacy Ltd.’s enabling technology now allows the financial services industry to confidently communicate with clients using their favourite channels leading to increased revenues and reduced costs while meeting the strictest regulatory requirements.
