In the financial services sector, trust is a critical factor for both customers and institutions. Text messaging has become a key channel for communication, but concerns about spam, fraud, and SMS phishing—known as "smishing"—have increased. According to industry data, smishing incidents rose by 328% in 2022, and 85% of consumers express concern about fraud when they receive a text from an unknown number. This lack of trust can result in customers disengaging, missed payments, and financial losses.
To address these concerns, the industry is focusing on message verification. Verification provides consumers with assurance that messages are genuinely from a trusted business. While compliance with regulations such as the Telephone Consumer Protection Act (TCPA), carrier guidelines, and opt-in/opt-out procedures is required, verification adds a visible layer of authenticity.
For SMS communications, using dedicated short codes can enhance trust. A recent survey by Datos Insights found that 20% of consumers feel more confident when messages come from a short number associated with their lender or credit card company. Branded URLs in messages also help consumers recognize and safely interact with links.
Multimedia Messaging Service (MMS) allows financial institutions to include images, videos, and logos in their messages. Including a business logo can increase recognition and trust, with 17% of consumers indicating higher trust when they see a familiar logo.
Rich Communication Services (RCS) take messaging further by enabling interactive features such as verified badges, branding, and tappable buttons. These features, along with carrier approval and registration, help ensure that messages are recognized as authentic.
Verified messaging can lead to higher engagement and conversion rates. Industry reports indicate that SMS open rates are around 98%, and verified senders see improved click-through rates, fewer opt-outs, and faster customer responses. One provider reported a 25% increase in application-to-funding conversions after implementing MMS messaging.
For members of the American Financial Services Association (AFSA), verified messaging offers several benefits: improved message deliverability, reduced unsubscribes, quicker customer responses, and higher return on investment. Verification is increasingly seen not just as a technical measure but as an essential part of trustworthy communication, especially in auto finance.
Solutions by Text is one provider helping financial institutions deploy verified and compliant messaging solutions to enhance engagement and protect brand reputation.
"Verification isn’t just a technical add-on—it’s the core of effective, trustworthy communications, especially in auto finance. Start delivering messages your customers trust, and see the business impact."