3 days Ago
Jēnna Reese is CEO of Connect Centric , a D.C.-based technology consultancy serving Fortune 1000 and large non-profits.
Regulations, outdated systems and security concerns make financial change feel more like chess than a sprint. But in customer engagement, standing still means falling behind. Enter RCS (rich communication services).
Think SMS but smarter—combining the immediacy of texting with the depth of an app. For financial services, where trust is everything, RCS is a game changer: secure, interactive and built for personalization. Financial institutions struggle to get customers to download, keep and use their apps.
Most don’t. Apps get ignored, deleted or forgotten. RCS eliminates friction.
Instead of another app, banks deliver interactive, app-like experiences directly in a customer’s native messaging app. No downloads. No passwords.
No hassle. Imagine an Army captain overseas getting a secure, interactive message instead of a generic bank alert—checking their balance, adjusting their credit limit, reviewing investment accounts—with a single tap. Scams have made customers wary of unexpected text messages.
Phishing attempts are everywhere, making even legitimate alerts easy to ignore. The result? Missed fraud alerts, ignored security notices and frustrated customers. RCS tackles this head-on.
With verified profiles, recognizable brand logos and built-in security checks, customers never have to guess if a message is real. Scammers love SMS because it’s easy to fake a sender’s number. RCS fixes that by giving every message a digital fingerprint—so there’s no second-guessing who's on the other end.
Traditional SMS feels like a one-sided monologue: “Your bill is due.” “Your transaction was approved.” “Your account balance is $X.
” It’s efficient but not engaging. RCS flips this. What if banking alerts weren’t just notifications but invitations to act? A fraud alert isn’t just a message—it’s a conversation.
A customer can tap “Yes, this was me” or “No, block my card” right within the message, cutting resolution time from hours to seconds. Take mortgage applications. Instead of an impersonal email drowning in a sea of unread messages, RCS guides customers through a step-by-step process—uploading documents, chatting with an advisor and seeing real-time approval estimates with interactive sliders.
For financial leaders focused on growth, RCS isn’t just about engagement—it’s a new revenue engine. Imagine a customer planning a trip getting a proactive, interactive message. Instead of a generic travel reminder, the message offers tailored travel insurance options.
They can compare coverage, activate travel alerts and chat with an advisor—all in the same conversation. Each RCS interaction has the potential to reduce service costs, increase conversion rates, and enhance NPS—all without requiring app downloads or contact center volume. The same applies to investment products and insurance plans.
Instead of making customers dig through website pages, RCS delivers these opportunities where they’re already engaged—their messaging app. Knowing RCS is a game changer is one thing. Implementing it is another.
For financial leaders ready to take the next step, here’s where to begin—and what challenges to anticipate. Rolling out RCS everywhere isn’t practical. Instead, financial service providers should focus on where interactive messaging makes the biggest impact.
Fraud alerts, loan applications and payment reminders are great starting points—delays in these areas cost time and money. • Find the biggest pain points. Where are customers dropping off or taking too long to respond? Turning one-way alerts into interactive messages can speed up fraud resolution and loan approvals.
• Look at past engagement trends. If customers ignore SMS payment reminders but respond to mobile notifications, RCS may be a better way to reach them. Some providers test RCS internally first before launching it to customers.
A small-scale rollout gives teams a chance to fine-tune the experience before expanding. RCS has to fit into an institution's existing systems, from fraud detection to customer databases. If these systems don’t connect properly, even the best features won’t be useful.
In those cases, software updates or workflow adjustments may be needed before RCS can be fully effective. That’s why IT, compliance and customer service teams should work together early in the process. • Check if backend systems are ready.
Some older platforms need updates to handle interactive messaging. • Plan for security and compliance. Data protection laws vary by country.
U.S.-based financial institutions, for example, must ensure messaging aligns with CFPB guidelines.
Beyond technical setup, providers should test how RCS messages look across devices and carriers. A poorly formatted message can drive customers away before they even engage. A full-scale launch isn’t the best approach.
A pilot program allows institutions to test RCS on a small scale, see what works and refine the experience before expanding. • Start with a small test group. A regional rollout or select group of high-value customers can provide real feedback while limiting early issues.
• Measure key results. Are customers responding to fraud alerts faster? Are loan reminders leading to more completed applications? • Listen to customer feedback. Metrics tell part of the story.
Are the messages clear? Do interactive features make things easier or create confusion? Once the initial rollout succeeds, organizations can expand RCS to more customer interactions, refining along the way. European financial institutions have shown that real-time, interactive messaging speeds up customer responses and makes banking more efficient. U.
S. companies that act now can adopt what’s working overseas, adapt it to their regulations and systems and roll it out with fewer hurdles. There was a time when online banking was a convenience—now it’s an expectation.
Messaging is heading the same way. Customers won’t just like having secure, two-way conversations with their financial institution—they’ll expect it. The organizations that start using RCS now will be ready.
The ones that wait? They’ll be playing catch-up. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?.
