Let CX Dive’s free newsletter keep you informed, straight from your inbox.
RCS messaging is gaining momentum and can help financial service providers collect payments, boost consumer engagement and win market share, a recent survey found.
RCS messaging has grown more popular among businesses and consumers. It offers several advantages over traditional text messaging, including the ability to share high-resolution photos and videos, read receipts, typing indicators, larger group chats and improved security.
The technology has been available on Android for years but gained greater traction after Apple added support for it to the iPhone’s operating system, iOS 18, last fall.
Over two-thirds of consumers said they became more comfortable with financial text messages after RCS features were added, with more than 84% of consumers saying they are open to using enhanced messaging for financial services.
Greater text messaging adoption can also help businesses collect payments by making it easier for consumers to enroll in autopay or settle overdue bills, with three-quarters of consumers aged 60 or younger stating they would be more likely to establish payment plans with collectors via RCS messaging.
“The lending landscape shows clear generational patterns,” the report says. “Younger groups, specifically Gen Z and millennials, have significantly different reactions to text. Gen Zers rank text messaging as the top way to receive communication regarding their financial accounts.”
RCS messaging could eventually replace many mobile apps, as consumers grow tired of the ever-expanding number of apps. An analysis by Aarki found that consumers typically explore 40 to 100 apps per year but use only 10 to 15 regularly.
The messaging technology can also help businesses streamline communications and reduce complexity.
“Rather than maintaining separate communication channels, such as websites, mobile apps, email, phone, and basic text messaging, financial institutions can consolidate customer interactions through a single, enhanced text-messaging platform that delivers app-like functionality without requiring separate downloads or installations,” the report says.
But RCS messaging isn’t a cure-all.
“Some complex interactions still require dedicated app interfaces,” the report says. “The optimal strategy involves RCS as the primary communication and transaction channel with mobile apps serving specialized functions that require extensive user interfaces or complex data presentation.”
Get the free daily newsletter read by industry experts
Hertz’s AI vehicle scanner was supposed to improve the vehicle damage inspection process. What went wrong?
Businesses are moving full steam ahead without it, damaging their customer experience, loyalty and brand reputation in the process.
Subscribe to CX Dive for top news, trends & analysis
Get the free daily newsletter read by industry experts
Hertz’s AI vehicle scanner was supposed to improve the vehicle damage inspection process. What went wrong?
Businesses are moving full steam ahead without it, damaging their customer experience, loyalty and brand reputation in the process.
The free newsletter covering the top industry headlines