You get a text and you don’t really think about the processes it takes to get that message from sender to receiver.
However, financial institutions must think about this when implementing their own text banking options. Here’s a look into the various text messaging offerings for financial institutions and how each motivates different type of customers.
Banking messages are split into two different types — push messages and pull messages. Mobile users are familiar with the term “push notifications”, in which most mobile apps or texting services ask if they can send them. These include update notifications, news, or message notifications. For mobile banking, this could look like withdrawal notifications, notifications of insufficient funds, or balance reports. These are automatic and generic, as are most push notifications across mobile.
Pull messages are ones that are initiated by the customer on their end. In this case, it usually looks like customer-initiated transfers, balance inquiries, bill payments, online application communication, and other commands that would normally be carried out in an online banking scenario or in-person. Pull messages work essentially the same way that online or in-branch banking works. They require customers to enter a series of easily identifiable text commands and uses personal codes to access the bank. It is quick, easy, and just as secure as any other form of banking. While pull messages are still automated messages, they are catered directly to customer need and requests.
There are many variables to consider when it comes to implementing push or pull messages. While push messages might be more optimal for a certain customer audience, like a technologically-savvy client, it cannot be narrowed down to any one subgroup — like Millennials or Baby Boomers. While there may be perhaps, some older generation customers who are very adept at text banking commands, there could also be some Millennial-aged banking customers who forget to check their bank accounts before making big purchases. The truth is this — banking institutions that cover both spectrums to offer both push and pull banking options often have the happiest, most satisfied customers.