25 Jan Impact of WhatsApp on the Banking industry
When Jan Koum and Brian Acton launched WhatsApp in 2009 as a free alternative to SMS messaging, they had a simple mantra to run the company – “No Ads! No Games! No Gimmicks!”
By the time Facebook came into the picture in 2014, to buy it out for $19 billion, WhatsApp messaging service company had 450 million users. At present, WhatsApp is the world’s largest messaging service provider with over 2 billion monthly users. While the app makes very little money now, Facebook has seen the great potential this messaging platform can bring to businesses. WhatsApp has had an immense impact on the way businesses communicate with their customers, especially over these last few years. WhatsApp messaging service has proven very useful when it comes to handling customer service issues, which otherwise required emails and phone calls.
Facebook’s $1 billion acquisition of the customer service software start-up, Kustomer in November 2020, marks the acknowledgment that instant messaging, text messaging, and asynchronous communication play a huge role in CRM services for businesses across the globe. At present, approximately 175 million businesses are already engaging with customers on WhatsApp to fulfill their CRM needs.
WhatsApp for Banking
At present, WhatsApp is the 3rd most widely used global social network, behind Facebook and YouTube, respectively. With such huge numbers, it’s not surprising for businesses to incorporate the messaging platform into their business model. Maintaining good Customer Relationship Management is a cumbersome task that requires constant communication with customers and new prospects in order to grow a business. Integration of WhatsApp banking service can severely cut costs and simplify CRM for businesses, based on their specific needs.
Integrating WhatsApp banking helps bridge the gap between banks and it customers, via simplified communication processes. Here are 5 reasons why WhatsApp banking should be considered for banking industry:
- Most customers are likely using WhatsApp already : The key reason for integrating WhatsApp banking service is that they are already using this channel to communicate. This enables the banking industry to reach out to their customers right where there are most active. This allows the banking industry to reach out to all existing customers and also to target potential customers through WhatsApp based marketing campaigns.
- It is cost-effective : While WhatsApp does not offer sponsored options, like Facebook and YouTube, it does allow businesses to send ads and other marketing communication for free via messages and/or marketing collaterals. Basically, it allows you to reach out to the database of customers for free.
- It’s more personal : WhatsApp financial service makes the communication feel more personal to customers and potential customers. Unlike most other social networks, personal messages on WhatsApp make it more intimate for people, as opposed to getting responses on social media networks. This allows people to trust your company more and increases their chances of their loyalty with your brand.
- High open rates : Research has shown that the average text message achieves approximately 98% open rate. With features that allows people to share images, voice messages, locations, documents, videos and GIF’s, WhatsApp leaves no stone unturned when it comes to two-way communication.
- Texts get read more : It is no surprise that text messages get read more often than emails or any other kind of marketing promotions that people get exposed to. This means WhatsApp ensures a higher likelihood that your messages get read, than get deleted, as is the case with emails.
While these are 5 good reasons why the Banking industry should consider integrating WhatsApp financial services to their business models, there’re more technical advantages that WhatsApp brings to banking.
Twixor for Banking
All companies today are increasing their focus on delivering enhanced customer experiences to build stronger, personalized relationships. While many banks have their own apps, it lacks consistency in terms of personalized messaging and user friendliness. This is where Twixor comes into the picture. Banking is an organization that serves a varied customer base. In to provide a seamless experience, Twixor provides custom solutions that can do it all – segment, personalize, and engage with customers on their preferred channels, and for building stronger relationships with your patrons. Twixor can proactively identify and quickly build “engaging” communications ensuring all business expectations are met. Twixor also allows organizations to construct and create communication flows that allow customers to carry out various banking services by through simple communication work flows on WhatsApp.
Twixor’s solutions have helped the banking industry by enabling customer to execute a host of services via WhatsApp. These services include:
- Account/ Cheque services
- Credit Card Services
- FD/RD Services
- Loan Services
- Block Debit/Credit Card
- Pre-approved offers
- Locating ATMs/Branches
- Applying for products/services
- Clearing dues
- Exclusive deals
A critical part of enterprise customer services is the onboarding process, where a potential customer is required to share documents for verification, in this case KYC formalities. Digitizing this process would help the banking and finance companies cut down costs and time. Additionally, it makes it more convenient for potential customers to give the necessary documents with just the click of a button. This enables banking companies to design tailor-made solutions and personalize customer journeys.