Diverse Applications for MMS Throughout the Lending Journey

In an increasingly competitive financial landscape, Multimedia Messaging Services (MMS) are reshaping how lenders connect with their customers by integrating images, videos, and audio into their texting strategies. Leveraging MMS allows lenders to deepen customer engagement effectively, improving the impact of their marketing initiatives and customer interactions. By delivering compelling multimedia content, MMS helps lenders capture attention, streamline communication, and ultimately, drive profitability.  

MMS has two varieties: outbound and inbound. Outbound MMS involves sending multimedia messages to customers, such as promotional images or videos, to capture their attention and convey key information. For example, a lender might send a video explaining a new loan offer to potential borrowers. Inbound MMS, on the other hand, allows customers to send multimedia messages back to the lender. This can be incredibly valuable for activities like document submission, where a borrower can send a photo of a required application asset directly from their phone.  

Both outbound and inbound MMS provide unique benefits—outbound MMS helps in proactive engagement and marketing, while inbound MMS enhances customer interaction and convenience. Here’s how MMS can be effectively used at each stage of the lending funnel: 

1. Marketing

Brand Awareness

MMS can also be used to build brand awareness. By sending out branded images (like your company logo) and videos, lenders can reinforce their brand identity and stay top-of-mind for potential customers. This is especially effective when launching new products or services, as it provides a memorable and engaging way to communicate key information. The success of MMS in building brand awareness is bolstered by its superior opt-in rate in comparison to other messaging types. MMS opt-ins are 20% higher than that of standard text messaging, making it the ideal tool for capturing audience attention.

Building Trust with MMS vCard

Another powerful feature of MMS is the ability to send vCards, which are digital business cards. vCards include important contact information for your business and can be easily saved to the recipient’s phone. By sending an MMS vCard, lenders can provide customers with their contact details in a professional and convenient format.

Sending vCards via MMS establishes brand recognition and fosters trust by ensuring that consumers know the message they are receiving is legitimate and safe to interact with. When customers receive a vCard, it reassures them that the communication is from a trusted source, reinforcing the lender’s credibility. This not only increases the likelihood of future interactions, but also enhances the overall customer experience. The use of vCards via MMS underscores a lender’s commitment to transparent and trustworthy communication, strengthening the relationship with the customer.

Campaigns that Drive Engagement

MMS enables lenders to create visually appealing marketing campaigns that stand out. Instead of relying solely on text, financial organizations can send promotional messages with eye-catching graphics and videos. For example, a loan offer accompanied by a dynamic video explaining the benefits of the product can significantly increase engagement rates. Prospective customers are more likely to respond to a compelling visual message than a plain text, leading to higher conversion rates. In fact, MMS messages receive 300% more engagement than text-only messages.

2. Loan Originations

Streamlined Application Process

The loan origination process can be simplified with MMS. Potential borrowers can receive step-by-step video guides on how to complete their applications, reducing confusion and errors. Additionally, lenders can send confirmation messages with images once an application is submitted, reassuring applicants that their information has been received and is being processed. The use of MMS allows borrowers to complete their applications anywhere and at any time, without the risk of losing their progress. This flexibility and convenience ensures borrowers stay well-informed and remain in control of their lending journey, significantly reducing the likelihood of loan application abandonment. By leveraging MMS, lenders can create a more responsive and supportive application experience, ultimately improving completion rates and customer satisfaction. 

Document Sending

Inbound MMS can facilitate the submission of necessary loan documents. Borrowers can take pictures of required documents (like their driver’s license) and send them via MMS, speeding up the application process. Lenders can also send documents via PDFs to borrowers through outbound MMS. MMS allows for better engagement tracking since recipients actively retrieve messages, making it easier to monitor performance and ensure that crucial documents were received successfully. Document sharing via MMS can effectively reduce the lead time for application completion as well as time-to-funding, eliminating the need for in-person branch visits, making the process more convenient for both the borrower and the lender.

3. Servicing

Account Updates and Notifications

Once a loan is approved and funded, ongoing communication is essential. Lenders can leverage outbound MMS to keep borrowers informed with account updates, payment reminders, and other important notifications. Additionally, MMS can be valuable for customer nurture and loyalty campaigns. For example, one of our customers recently sent a 15-second video from their CEO, welcoming new loan account holders to their business. This personalized touch not only keeps customers informed but also strengthens the relationship between the lender and the borrower. This personalized touch can build a stronger relationship between lender and borrower. 

Customer Support

Inbound MMS greatly improves customer support by allowing borrowers to send images of account-related issues. These visual aids help customer service representatives diagnose and resolve problems faster and more accurately, enhancing the overall customer experience. The extended character limit of MMS—up to 1,600 characters compared to SMS’s 160—also supports more detailed and informative messages, making two-way communication more effective for case resolution.

4. Bill Pay 

Payment Reminders

Timely payment reminders are crucial in the loan repayment phase. MMS can make these reminders more engaging by including an image reminding the borrower of the upcoming due date. This approach not only grabs attention but can also provide clear instructions on how to make a payment, reducing the likelihood of missed payments.

Repayment Options

Lenders can use outbound MMS to deliver impactful short-from videos that explain repayment options directly to borrowers. For customers experiencing financial hardships, send an MP4 video file via MMS outlining refinancing opportunities, complete with a direct link to your website for easy application initiation. To proactively address potential delinquencies, lenders could also send a concise video to guide customers through the process of setting up a tailored payment plan. These approaches not only improve general repayment efforts by thwarting delinquencies and late payments, but also foster stronger relationships with borrowers by providing helpful financial management offerings.

5. Re-marketing

Cross-sell Opportunities

Unlock the full potential of your customer base with targeted cross-sell opportunities using MMS. After a borrower repays their loan, MMS allows lenders to re-engage them with personalized offers on other financial products, seamlessly boosting revenue.

Imagine sending a personalized video message to a customer who has just repaid their personal loan, highlighting an attractive new auto loan product tailored to their profile. This approach not only showcases the value of the new offer, but also keeps their financial needs within your organization, fostering customer loyalty and driving repeat business.

By leveraging MMS for cross-selling, you can effectively maintain a continuous relationship with your customers, ensuring they think of your financial solutions first for all their future needs. This strategic engagement enhances your bottom line by optimizing customer lifetime value and expanding your product adoption rates.

Loyalty Programs and Special Offers

MMS is an exceptional medium for communicating loyalty programs and special offers to customers. Sending visually engaging messages about exclusive offers or rewards for loyal customers can effectively entice them to take advantage of new opportunities, fostering a long-term relationship.

Moreover, MMS enhances customer loyalty through personalized campaigns. Examples include sending a cheerful GIF for a customer’s birthday or a celebratory video upon completing loan repayment. These personalized touches not only celebrate milestones in customer’s personal lives and financial journeys, but also create a sense of connection that today’s consumers highly value. Such thoughtful gestures can significantly differentiate lenders and boost customer loyalty.

There is no question that MMS improves return on investment for the text communication channel, driving valuable connections and increasing conversions. By incorporating MMS into your existing SMS strategy, or by implementing MMS alongside SMS for businesses building texting into their omni-channel approach, lenders can effectively improve their bottom line.

Interested in how your business could be generating 3x the engagement through its texting channel with MMS? Let’s talk!

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