10 Reasons Why Banking and Finance Will Always Use Transactional Mail
Written at Jul 24, 2023 2:46:33 PM by Justin O'Donnell
While most of the world has moved on to paperless electronic statements, the banking and financial industry—by necessity—still relies heavily on transactional mail. Whether we’re talking about bills, statements, payments, or credit cards sent by the postal service, these mediums are not going away any time soon. Here are ten reasons why banking and financial institutions still use transactional mail.
- Security and Compliance: When you receive financial information in the mail—account statements, credit card details, payment receipts—you have the peace-of-mind that this piece of paper is in your physical possession, meaning you can store it, shred it, or turn it into a paper airplane. Digital versions of the same information, however, exposes you to cyber threats. This is why many banking and financial institutions rely on transactional mail: it reduces the risk of data breach and identity theft, while adding an additional layer of security.
- Customers Prefer It: A large demographic of customers, particularly older customers and those who increasingly prioritize privacy, prefer physical transactional mail for their sensitive financial information. Instead of moving to a completely digital system, banking and finance companies maintain a physical option to cater to diverse customer preferences.
- Legal and Regulatory Requirements: Many legal and regulatory codes mandate that banking and financial institutions deliver certain financial documents through physical mail.
- Inclusivity: Not everyone has access to the latest digital tech. Transactional mail keeps communication equitable and ensures that those who do not have an internet connection—or maybe don’t have the tech-savvy to access e-statements—are still able to receive their critical information.
- Tangible: Holding your credit card or your bank statement in your hands reinforces a sense of ownership: it’s yours. Physical mail communicates a perception of officialness and trustworthiness, and in exchange, the customer can feel a personal commitment to their financial institution. Conversely, it may be hard to get the same feeling from an email that gets lost in your spam folder.
- Backup: By printing your transactional mail, you possess a reliable backup. In the event of technical issues, misplaced digital records, or natural emergencies, physical copies can act as a valuable reference point for both customers and financial institutions. Hey, you still need to pay your mortgage if the electricity goes down.
- Redundancy: Relying solely on digital communication can lead to missed messages (spam folder, anyone?). Transactional mail ensures redundant communication and reduces the risk of customers missing their essential financial information. You can only ignore your physical mailbox for so long—eventually your mail courier is going to tell you to stop ignoring your bills and bring them inside where they can stay on your kitchen counter for a few more weeks (or months).
- Digital Divide: In a world overrun by digital noise, a new trend of digital minimalism threatens to upend the status quo and disrupt the e-delivery framework of general digital communication. As more and more people revert to old-school phones, delete their social apps, and “unplug” from the digital behemoth that looms over every area of our lives, physical mail represents a safe haven for those dreaming of a more analog time.
- Brand Visibility: When you print something and mail it to a customer, you get another opportunity to reinforce your brand identity. Whether its customized envelopes, logos, or fancy colored paper, branding elements can leave a lasting impression on customers.
- Marketing Opportunities: Transactional mail also represents a chance for targeted marketing. This could be promotional offers, personalized recommendations, or educational material within the transactional document. This has proven to increase customer engagement and create cross-selling opportunities. Win-win.
While digital communication has prevailed in many areas of life, the banking and financial services industry will always enjoy the benefits of transactional mail. Physical mail will continue to be essential due to its security, compliance, customer preferences, and inclusivity. The physical aspect of transactional mail, along with its tangible benefits, legal requirements, and redundancy, make it a vital component in the overall communication strategy of financial institutions.
BlueCrest is here to help.
That said, budgetary constraints, paper costs, labor shortages, and evolving customer preferences have made it vital for financial institutions to continually streamline their processes and maintain cost-effective operations. This is where BlueCrest shines: we offer innovative solutions designed to automate banking and financial mailing processes, processes that improve speed and efficiency, all while driving the bottom line. From data through delivery, we can help you get the job done.