SMS is widely used by businesses for a variety of purposes, including marketing, customer support, cybersecurity, 2-factor authentication, appointment scheduling, human resources, and much more. Business communication now requires the use of an SMS gateway. And with good cause. 95% of SMS messages are read within three minutes of being received, and over 90% of smartphone users always keep their devices within arm’s reach, according to Morgan Stanley. Because of this, SMS is currently the most efficient way to send a message.
Therefore, it should come as no surprise that recent research from the Australian Government’s Behavioral Economics Team (BETA) indicates that corporate text messaging may be the answer to the country’s credit debt problem.
According to ASIC, about 2 million Australians—roughly 15% of all adults—are dealing with serious credit card debt. The depressing truth is that, although our nation has one of the greatest levels of medium wealth per adult, we also have one of the highest levels of household debt worldwide.
However, it’s not all bad news. According to the Australian Financial Review, BETA’s research, conducted in collaboration with Westpac and the Australian Treasury, revealed that SMS reminders raised monthly credit card repayments by 28%.
According to the survey, people who got SMS “nudges” paid an average of $134 more off their credit card the next month than others who didn’t get a reminder. After a year, the balances of those who got an SMS reminder were about $365 less than those of those who didn’t. It’s no little accomplishment. According to this report, Australia’s $45 billion credit card debt could be reduced by $12.6 billion if lenders nationwide used an efficient SMS strategy.
By reducing high-interest rates, SMS reminders, according to Hon. Zed Seselja, Assistant Minister for Treasury and Finance, might also result in significant savings over the course of debt. He advises all banks that provide credit cards to take these findings into account as well as the ways in which they may help their clients pay off their debt.
As a result, how do lenders manage the weekly distribution of thousands or even millions of reminder messages to clients? Partnering with an SMS provider, who already has the infrastructure in place, is the simplest and most popular approach. From there, it may be as easy as selecting a message, entering contacts, and pressing send. Lenders can send customized reminders in bulk at any time by utilizing common capabilities like message scheduling, merge send, and systems connection.