Which services does SMS banking provides?
With SMS banking solutions you can quickly and easily notify consumers of account transactions, send payment reminders (including reducing the late payments by sending reminders before payments fall due), send collections messages to recover funds owing and allow customers to monitor their account activity.
- Convenient banking from any time anywhere.
- Eliminates the need to physically visit the bank every time you need to avail a new facility.
- Check account balance, transactions, and other details.
- Generate OTP to authenticate transactions.
- Give instructions to your bank.
It allows customers to conduct financial transactions through a mobile device, such as a smartphone or tablet. SMS (Short Message Service) is a popular means of communication that has gained widespread use in banking and financial institutions.
It is a facility used by some banks or other financial institutions to send messages (also called notifications or alerts) to customers' mobile phones using SMS messaging, or a service provided by them which enables customers to perform some financial transactions using SMS.
What is Text Banking? Text banking gives you access to your accounts via text (SMS) messages on your phone. It's a fast, easy way to look up account balances or recent account history by sending a text command to a shortcode.
It's fast and efficient, with messages delivered in a matter of seconds. Not only that, but over 90% of SMS notifications are read within three minutes of being received, making it one of the most direct channels available.
It is commonly used by businesses, such as banks, e-gaming, logistic companies, e-commerce, to send SMS messages from their systems to their customers.
What is an SMS payment? An SMS (Short Messaging Service) payment refers to any payment taken using an SMS text message. The business might send a text message to the customer with a link to click through for payment processing. In many cases, customers can complete a purchase via SMS by texting back a response.
Risks of mobile banking
The 2021 Nokia Threat Intelligence Report indicated that 50% of banking malware is targeted toward Android users, because Androids run on a fully open-source operating system. Cyberattacks triggered by hackers, unexpected glitches, and user mistakes can all undermine an app's security.
Marketing and promotions: Financial institutions may use SMS to send promotional offers and special deals to customers. Mobile payments: bank SMS can also be used as a payment method. Some mobile wallets, like Google Wallet and Venmo, use SMS to send and receive payments.
What is the difference between Internet banking and SMS banking?
The biggest difference between the two is their functionality. Internet Banking allows you to conduct online transactions through your PC or laptop and an internet connection. On the other hand, mobile banking can be done with or without internet. Many banks nowadays have their mobile apps for mobile banking.
SMS just means that the text was sent using regular text messaging, as opposed to Chat/RCS, which is similar to iMessage for Android.
- The SMS gateway receives and passes the message to the appropriate mobile network. - The mobile network processes the message and then attempts to deliver it to its intended recipient. - When the message is successfully delivered, the mobile network sends a delivery report to the sender.
Premium SMS numbers are pre-approved by mobile carriers. After end users send an SMS message to this number, they are charged a certain amount to their mobile phone bill (can be one-time or subscription-based).
In the SMS Alerts Registration/Updation page, select an account and click the disable hyperlink. SMS alerts will be disabled after getting your confirmation in a subsequent page. Do I need to log in to Internet banking frequently to receive SMS alerts? No.
Never send your bank or credit card details via email, text or through social media. Avoid making payments online when you're using public Wi-Fi.
| Advantages | Disadvantages |
|---|---|
| Good for informal messages | Can take some time to compile a message if you are not familiar with text speak shortcuts |
| Good for helping friends and family keep in touch | Text speak spills over into written school work and formal communication. |
Disadvantages: SMS messages are limited to 160 characters per message. SMS messages do not support rich media like photos or videos. SMS messages can be expensive if you are sending them to international contacts.
- Socially Disruptive. ...
- Expectations of 'Instant Messaging' ...
- A Hotbed for Misinterpretation. ...
- Impersonal. ...
- Addictive Qualities. ...
- Safety Concerns. ...
- Potential Erosion of Language Skills. ...
- Group Texts.
An estimated 5 billion people send and receive SMS messages every day and over 6 billion have access to phones. That's about 65% of the world's population, meaning 33% more people can send a text than can use indoor plumbing.
Does SMS cost money?
SMS and MMS carrier fees are additional costs charged by wireless carriers. These fees vary per message and number type. For example, some carriers only charge fees for messages sent on toll-free numbers. Others charge for both sent and received messages on short codes.
Physical Access to Your Phone: If someone has physical access to your phone, they can read your text messages directly from your device. Spyware or Malicious Apps: Malicious software or spyware installed on your phone can grant unauthorized access to your text messages.
When you hit 'send', your mobile phone carrier uses the GSM system to convert the message and the recipient's mobile phone number into data sent to the nearest mobile phone tower. From there, it's routed to the tower closest to the recipient, where the data lands on your friend's phone, unscrambled as your message.
- Connect your business texting account to a payment processor.
- Connect that payment processor to your bank account.
- Send a “payment request” from your texting account to your customer.
- The customer responds with a confirmation code to initiate payment.
The SMS Banking facility is absolutely free. Customers are charged only for sending a message to the number, which will be charged by your mobile operator as per your billing plan.
