The benefits of having text message services for banking are real. Not only does it provide a direct channel of communication “à la” SMS but it can also connect more people to your organization’s brand, fostering a deeper sense of customer loyalty.

Risks to Consider with SMS Compliance

As B2C text messaging become increasingly popular, it is important for companies to consider the possible side-effects of not following proper opt-in steps. For example,  Jiffy-Lube was fined $47 million for violating the Telephone Consumer Protection Act (TCPA) in 2010.

But how could this have been avoided? The answer merely requires a closer look at the TCPA rules and regulations. In general, text message opt-ins should consider the following:

SMS opt-in process must be clear

Text message offers are excellent tools to get you started, but the consumer should never have the wool pulled over their eyes when it comes to text messaging offers. Prior to signing anyone up, each user should always be clearly presented with a choice. Some of the best ways to do this are with clear pop-ups that state the extent and purpose of contact, and step-by-step instructions on how to opt-out of text messaging offers.

Never spam

Users who do opt-in want to be made known about certain promotions or sweepstakes appropriate to them but they don’t want to receive an overabundance of texts. Before running targeted SMS marketing campaigns, take a data-driven approach to ensure the offer is relevant to each person receiving a text message. 

State the intent or offer

Even if the offer is relevant, each user must be willing to receive such offers from you on an ongoing basis. Many consumers may not realize this prior to receiving offers. It is important to have language that states they agree to be contacted by text for account services, marketing offers, or other banking-related purposes.

In summary, the opting-in journey from a user’s perspective must be transparent so each user understands your intention as a financial organization.  With compliance covered, text messaging then becomes a powerful tool for your organization to utilize.