In the fast-moving world of financial technology, better known as fintech, determining whether or not a partnership makes sense is a challenge in itself. This is particularly true when you are considering a collaboration with a text messaging vendor.

Not all text messaging vendors are created equal. For instance, today a majority of SMS vendors are taking a ‘generalist approach’ attempting to cover every industry and sector, rather than become a specialist for a specific business customer-base. 

If you are considering or currently evaluating a new text messaging solution, it is important to ask the following:

Is the SMS vendor a banking specialist?

How many industries does the vendor attempt to cover with text messaging services? This question should be answered by going to the vendor’s website or asking the vendor directly. In addition to the banking sector, you may see such industries as dealerships, fitness, healthcare, legal, retail, and travel listed. When evaluating an SMS platform, consider the differences with how your customer or member-base will need to get service compared to a gym customer.

How is the platform being deployed?

For text messaging vendors, it is important to start out with the “why” when it comes providing service. This comes with a knowledge of the bank or credit unions digital tools in place and a clear understanding of your goals to improve the experience of the end-user. A ‘right’ text messaging platform should enhance the quality of your digital journey and builds high-value relationships with the customers you need most.

What level of customer service will you be getting?

This leading to the next checklist item. Poor customer service can really cost a banking organization, especially if it affects the quality of service to their customers. Worldwide, poor customer service costs businesses $62 billion in revenue annually. Understand ahead of time if you will be getting a dedicated account manager that specializes in your specific sector. 

Is the Cost Worth it?

With every new banking technology, there is always a cost associated. The cost can also be indirect, if you consider the opportunity cost with time for training staff, implementing into your existing system, and integrating with other fintech software such as LOS systems. Additionally, the vendor should present you with a detailed ROI analysis based on the size and scope of your banking organization. Avoid vendors with complicated pricing structures and hidden upfront implementation costs. Look for a vendor with simple pricing as well as the easiest onboarding solutions is critical.

While these considerations are certainly not exhaustive, each are intended to provide you with a framework for evaluating the basic needs of a text messaging solution. Please contact us today if you would like to learn more about Elle, our text messaging platform built for the banking industry.