Banks that choose to use SMS technology to communicate with their customers are making a wise financial and business choice, as more and more people choose to conduct business through mobile messaging.

Through SMS technology, banks can provide a wide array of services to their customers. On their end, customers can request particular information, or services. Through the SMS technology, the products and services are provided quickly, efficiently and with little inconvenience on either side.

In short, SMS banking technology works like this: through what’s known as “push and pull” messaging, the bank and customer can communicate, make requests and provide information.

Most SMS bank messaging is through “push” messages, or those that are instigated by the bank to the customer via their mobile devices. These types of messages might include an account statement at the end of the month (or quarterly, even), notification of insufficient funds and notification that an electronic deposit (as in a salary) has posted.

Typical “pull” messages are those requested or initiated by the customer and they might include: an account balance inquiry, a request to make a bill payment electronically, requests to move money from one account to another, and stopping payment on a check or requesting that a debit card be de-activated if stolen or the PIN compromised.

One popular SMS banking use is for one-time password assignment and use. Using a one-time password, a banking customer can initiate payments, or move money. Once the transaction is complete, the password is no longer attached to the account. This effort is a combined “push” and “pull”, with the customer using SMS technology to request the password, and the bank providing it, and then destroying the password once the transaction is complete.

For both customers and banks there are many beneficial aspects to using corporate SMS technology, not the least of which is the saving of time, money and energy. And although some express security concerns with the SMS technology, experts saying that using SMS for banking concerns is generally more secure than or as secure as using an ATM or online banking.