Banks can actually increase the chances of their customers reaching their savings goals by using an SMS service to send out regular reminders.
Researchers from across Peru, Bolivia and the Philippines recognised this during a recent study. They found that the likelihood of customers reaching their targets grew by 3.1 per cent when spurred on by text messages from their bank.
The total amount saved could rise by 6.3 per cent when SMS reminders are sent, too, poverty-action.org reports. The findings may well encourage the UK’s banks to follow suit; encouraging those with savings accounts to regularly deposit money. Both adult and teenage savers can benefit, the report suggested.
Time.com reported on the findings and suggested some example messages that could be sent by banks. These included a friendly reminder for those hoping to buy their own home: ‘Reminder: You pledged to save for a home. Have you made your savings deposit this week? Reply “y” for yes and “n” for no’.
Not only does this encourage savers to make a payment, but also sets up a line of communication between them and the bank. This helps banks gather valuable data, increase engagement levels and build a trusting relationship with their savers.