Why Fintechs and Banks Prefer Bulk SMS Over WhatsApp

In today's fast-paced financial sector, fintechs and banks need reliable, efficient, and secure communication channels to engage with their customers. And this may be the reason why they choose Bulk SMS over WhatsApp While WhatsApp is a popular messaging platform, bulk SMS remains the preferred choice for many financial institutions. Here’s why:

1. Ubiquity and Reach: Bulk SMS can reach any mobile phone, regardless of smartphone ownership or internet connectivity. This universal accessibility ensures that messages can reach customers anywhere, at any time. For banks and fintechs with a diverse and global customer base, this is a significant advantage over WhatsApp, which requires internet access and app installation. 
2. Reliability: Bulk SMS is known for its reliability. Unlike WhatsApp, which depends on internet connectivity, SMS can be delivered even in areas with poor network coverage. This reliability is crucial for time-sensitive communications such as transaction alerts, fraud notifications, and OTPs (One-Time Passwords). 
3. High Open Rates: SMS, as a communication channel, has an impressive open rate of around 98%, significantly higher than many other communication channels. When financial institutions need to communicate critical information promptly, SMS ensures that messages are seen and acted upon quickly.
4. Security and Compliance: Security is a top priority for financial institutions. Bulk SMS provides a secure communication channel that adheres to strict regulatory requirements for data privacy and customer communications. With advanced encryption and secure delivery mechanisms, bulk SMS helps safeguard sensitive financial information.
5. No Dependencies on Third-Party Apps: WhatsApp, while widely used, is a third-party application that requires users to have the app installed and updated. On the other hand, SMS is supported natively by all mobile phones, eliminating the need for additional apps and reducing dependency on third-party services. 
6. Regulatory Considerations: Financial institutions operate under strict regulatory frameworks that dictate how customer communications should be handled. Bulk SMS services from reputed Registered Telemarketers are designed with these regulations in mind, offering features like secure message storage, delivery confirmations, and auditable trails. These features help banks and fintechs ensure compliance with ease.
7. Cost-Effectiveness: Bulk SMS channel offers a straightforward, cost-effective solution with transparent pricing models and widespread carrier support.

Why Fintechs will continue to rely on SMS over WhatsApp

Even though WhatsApp offers a modern and feature-rich communication platform, each service has its own set of advantages and disadvantages. SMS stands out with its universal accessibility, high reliability, and compliance with regulatory requirements, making it an essential tool for ensuring that all customers receive critical financial alerts regardless of their phone type or data plan. However, its limited features can be a drawback. On the other hand, WhatsApp enables richer communication through multimedia content and interactive two-way communication, enhancing customer service and engagement. Yet, it faces challenges related to regulatory compliance, dependency on internet connectivity, and the necessity for customer opt-in. Understanding these differences allows Fintechs to strategically utilize both services to meet diverse customer needs and ensure seamless communication. To conclude, Fintechs are likely to use a combination of both SMS and WhatsApp. SMS remains the reliable workhorse for critical alerts and ensuring broad reach, while WhatsApp can be a valuable tool for more interactive communication and richer content when appropriate and secure.  But wait there’s another contender in the game - Rich communication services by Google or RCS for short. In a nutshell, RCS enables all the advantages of WhatsApp into SMS! Rich media, chatbot, carousels, document sharing, 2-way interaction, etc. at a fraction of the cost as compared to WhatsApp. Isn’t that food for your thoughts?  If you want to know more about RCS business messaging, follow this link.