Prepaid providers are no strangers to balance alerts. But new research suggests that financial institutions can go further with alerts and push notifications to strengthen relationships with customers and increase revenue.
Consumers are most interested in receiving alerts about unusual account activity on payment cards or at ATMs; credit card transactions that are declined, go over their limit or are out of their usual geographic area; and requests to confirm changes to account access or contact information, according to “Push Notifications are Redefining Financial Communications,” by Fiserv, a provider of financial services technology. “These preferences suggest consumers are most attracted to financial alerts involving security, fraud prevention, fee avoidance and problem avoidance,” the report notes.
Alerts small businesses are most interested in mirror those of consumers, such as unusual activity on credit cards or at ATMs, and requests to confirm changes to account information, but also include deposits to accounts that have cleared or failed to clear.
Push notifications, which provide information without a request for action from the recipient (unlike some alerts) offer FIs an opportunity to provide value to consumers and small business customers if their notification strategy reduces fraud risk exposure; provides greater customer self-service; provides compelling marketing messages, such as new loan rates that might result in inquiries about refinancing opportunities; or notify the recipient that a bill is due.
In addition to strengthening customer relationships and providing them with more control over their banking, alerts and notifications could provide FIs with added revenue. Consumers will pay for certain “high value” alerts that could result in charges, such as overdraft; however, the report notes that most alerts are free and customers might be resistant to paying a fee. Small businesses showed a greater willingness to pay for actionable alerts that could protect their businesses.
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