News

The added value of SMS for the financial sector

6 February 2018

SMS ensures that systems are better protected against unauthorised access. For example, financial institutions can use SMS for TAN codes, authentication, payment reminders and on various status reports.

Secure Internet Banking
Companies in the financial sector have the possibility to send TAN codes to their customers via an SMS Gateway. For example, banks can send an automated SMS message via a secure connection, with a specific code. This code can provide access to the secure environment of Internet Banking, making internet banking even easier and safer. An additional advantage for both customers and banks, is that an e-dentifier of e-reader is no longer needed.

Authentication by SMS
SMS authentication is increasingly used to give employees access to an online home workstation or a company network. Finding a strong password is becoming more difficult and hackers are getting smarter. Using inadequate passwords can lead to a worldwide costs and damage, especially in the financial world. SMS authentication offers the right solution for this problem as companies can easily send an automated SMS message to an employee’s mobile phone over a secure connection. The SMS message includes a unique code that provides access to the secure environment of the company and confirms whether the user is actually who he or she claims to be. This significantly improves the security of corporate networks and online self-workstations. On top of that SMS authentication saves costs as a One Time Password per SMS replaces physical tokens, such as a smart cards.

Machine-to-Machine communication via SMS
In addition to providing authentication by SMS, many financial service providers use SMS services for Machine-to-Machine communication. Through our SMS Gateway, SMS messages are sent to the Internet Banking system with virtual payment orders throughout the day/week. The system responds with a response SMS. This process accurately reflects the actions that a typical customer would perform when the person executes a payment order through internet banking. As a result, faults are immediately apparent and banks can respond adequately.

Informing on various statuses
Proactively sending SMS messages with information about various statuses concerning insurance applications results in enormous cost savings for large insurers, because customer service is no longer overloaded. The SMS Gateway from Spryng can also be used to remind customers by SMS to activate their travel insurance or in the debt collection branch to remind people of their outstanding invoices.

Why SMS?
Of course one can argue that SMS solutions can also be replaced by e-mail. However, research has shown that banks and insurers prefer SMS to e-mail because the attention value of SMS is almost 5 times higher. 98% of all SMS messages are read within 5 minutes. In addition, a big advantage is that the costs of SMS are extremely low compared to traditional media, such as making a telephone call or sending a letter.

So start with Spryng’s SMS Service and contact us today! Within just a few minutes you will be able to use our SMS services. Our SMS Gateway can also be connected to other systems by using our SMS API.

Share this message