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Texting in the Financial Services Industry

By July 31, 2017blog

Financial advisers want to text their clients and their clients want to be texted and to text back. Using messaging apps is simply a way of life for the 95% of Americans who own a cell phone. This demand has led to some financial firms taking the step to implement means of secure corporate communications into their workplaces in an attempt to answer the needs of their clients while still maintaining secure lines of communication that are compliant with U.S. Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) regulations.

In addition to ensuring that messaging is compliant with industry regulations, many firms have also instituted added measures to ensure that clients and client information is kept secure.

Bulk texting is one example of how these firms can utilize secure messaging as a tool to reach out to clients after the occurrence of significant events that affect the market. While email messages are rarely read, text messages are more likely to be opened by the client. Scheduling appointments and reminders to pass along necessary documents or information are other uses of the secure messaging systems.

Some systems are set to detect certain certain words to prevent risky messages from being set. Others require two-step authentication, such as adding a fingerprint scan to the password, before sending out messages. Even with these added measures, though, clients should always be kept aware of the dangers of opening links or sending personal information such as social security numbers or routing numbers via text messages.

Whether it’s a big firm or an independent financial adviser, the SEC and FINRA regulations are important to keep in mind and only messaging systems that are totally compliant should be used for interaction with clients and colleagues. Encrypted messaging and text message archiving are two key components to keeping client information secure and accessible while still maintaining a flow of communication.