Texting is no longer just for chatting with friends — it’s rapidly becoming one of the most powerful tools in the financial ecosystem. As conversational interfaces like SMS, RCS, and AI-powered chat become embedded in daily life, they’re reshaping how consumers interact with banks and make payments. According to Nick Babinsky, Chief Product Officer at Solutions by Text, this shift isn’t limited to one demographic — it spans every age group and income bracket.
Consumers today expect real-time, intuitive, and secure interactions — and texting delivers. From resolving account issues to making payments, customers want simplicity. In fact, studies show that nearly half of Gen Z and Millennials say they’d switch financial providers if they couldn’t manage issues via text.
That growing demand is pressuring banks, fintechs, and BPOs to rethink customer engagement strategies. For Solutions by Text, that means helping institutions craft compliant, conversion-focused conversations — whether it's signing up for new products, enrolling in autopay, or answering a service inquiry.
But there are challenges. Widespread phishing attempts via SMS have bred distrust, creating hesitation around text-based financial interactions. To combat this, the industry is shifting to Rich Communication Services (RCS), an upgraded messaging protocol supported by major carriers that enables verified business messages complete with logos and secure identifiers. Babinsky explains that these visual signals — checkmarks, names instead of numbers — can restore trust and distinguish real communications from fraud.
Beyond technical enhancements, best practices matter. Babinsky advises that banks send messages from primary service numbers and embed vCards, making it easier for customers to recognize and save trusted contacts.
At the heart of this transformation is a concept Babinsky calls “submerging payments” — making the act of paying so seamless that it fades into the background. Just like how Uber eliminated the need to “check out,” conversational banking aims to embed payments within the broader customer journey. Text-based reminders, for example, have proven to increase mobile engagement dramatically: 40–50% of portal payments shift to mobile when reminders are introduced.
The result? Lower days sales outstanding, higher customer satisfaction, and a surge in one-time payments becoming recurring ones. For banks navigating rising interest rates and stiff competition from fintechs, mobile messaging isn’t just convenient — it’s a strategic advantage.
“What we hear from banking executives is: ‘How do we break through the noise?’” says Babinsky. The answer lies in offering frictionless, compliant, and real-time conversations — whether for payments, account openings, or resolving questions. And it’s working: most Solutions by Text customers double their message volume in just six months, driven by improved outcomes and better engagement.
As Babinsky sums it up: “Compliant conversations lead to conversion — and conversion drives impact.”
