SMS banking is a service that simplifies access to banking functions for customers by using SMS (Short Message Service) technology. This service enables customers to carry out banking transactions without having to visit an ATM or a bank branch.
In this article, you will learn what SMS banking is, how it works, what benefits it offers and how you can carry out transactions using this service.
What is SMS banking?
SMS banking is a digital banking service that allows customers to access banking functions via SMS on their cell phone. Customers can use SMS banking to carry out various transactions, such as checking their account balance, transferring money and paying bills.
According to the Indonesian Financial Services Authority (OJK), SMS banking is a banking service that can be accessed directly via cell phone and uses SMS as a medium.
To use SMS banking, customers need to have sufficient credit on their phone, with fees varying depending on bank policy. This service is simple and convenient as it does not require an internet connection. As long as the customer has sufficient phone credit, they can use SMS banking anytime, anywhere.
How does SMS banking work?
To use SMS banking, customers must register their telephone number with the bank that set up their savings account. They must also create a personal identification number (PIN) to gain secure access to SMS banking services.
Once registered, customers can access SMS banking by sending certain messages from their phones. The format of these messages varies depending on the bank and the function the customer wishes to access. Customers must enter their SMS banking PIN when making transactions or accessing services.
Once the message has been sent, the bank processes the request and provides the required information in a reply message. For example, when the customer makes a transfer, they receive a transaction confirmation in the form of an SMS.
Advantages and disadvantages of SMS banking
As a form of digital banking service, SMS banking has some advantages and disadvantages. These aspects can help you decide whether this service meets your needs.
Advantages of SMS banking:
- Simplicity and convenience: banking transactions and payments are easy, convenient and accessible from anywhere.
- Independent of external interference: The service is not affected by internet connections or power outages.
- Real-time notifications: Users receive instant transaction alerts via SMS, such as notifications of incoming transfers.
- Secure: Customers can instantly delete sensitive banking data from their messages, increasing security.
- Universal compatibility: The service can be used with all types of SIM cards.
Disadvantages of SMS banking:
- Limited features: Customers cannot access advanced features such as opening new accounts.
- Transaction codes: Specific codes are required for each transaction, for example, "TRF" for money transfers. Customers must enter the correct codes to avoid errors.
- Security risks: The service is vulnerable to phone tapping or theft of the customer’s mobile device.
- Higher costs: The cost of using SMS banking is usually higher than other digital banking services, such as mobile banking or internet banking.
How to carry out transactions with SMS banking
There are two methods available for transactions via SMS banking: normal SMS and SMS toolkit. You can find a detailed explanation here:
1. Transactions via regular SMS
The first way to perform SMS banking transactions is to send a regular SMS. You need to enter the transaction format as per the bank's guidelines and send the message to the bank's service number. Each bank usually has its own format and transaction codes for SMS banking services.
2. Transfers via the SMS toolkit
The second method is the SMS toolkit, a special menu provided by the mobile network operators. To use the SMS toolkit menu, you must register with your bank's branch.
It's important to know that each mobile network provider offers a different SMS toolkit menu. Therefore, check the compatibility of your provider before using this method.
Common features of SMS banking
As a banking service, SMS banking offers several common features that are accessible to users. Here are some of the typical features of SMS banking services:
1. Money transfers
One of the most important features of SMS banking is the transfer of funds to a savings account. The message format for SMS banking transfers varies depending on the bank's policies. Generally, you will need to enter the transfer amount, account number and sort code when transferring between banks.
2. Check account balance
You can use SMS banking to check the balance of your savings account. As with other functions, you must enter the transaction code and your PIN. The bank will then send you a reply message with information about your account balance.
3. SMS notifications
You can activate SMS notifications for transactions. To activate this function, you must register your cell phone number with your bank branch. Once it is activated, you will automatically receive notifications for certain transactions.
4. Purchases and bill payments
You can also use SMS banking to buy certain products and pay bills. For example, you can buy cell phone credit or pay utility bills such as water, electricity and internet via SMS banking.
5. PIN change
If you want to change your PIN and are unable to visit your bank branch, you can do so via SMS banking. However, make sure that you access SMS banking and change your PIN securely.
Managing transactions and payments more efficiently with Aspire
SMS banking is a banking service that you can use for business transactions and payments. However, this method is often considered less efficient as it relies solely on a mobile number and is only accessible to a limited number of team members.
If you're a business owner looking for a more efficient transaction solution, Aspire Business Account is the perfect choice.
With an Aspire Business Account, you can make up to 10 free local transfers to any bank every month. In addition, Aspire allows you to make international payments to over 130 countries in more than 30 currencies at competitive transfer fees and exchange rates.
Aspire also offers free local transfers in multiple currencies, including USD, SGD, and EUR, directly from your Aspire multi-currency account.
For customer payments, Aspire’s Payment Gateway enables you to accept over 26 payment types worldwide. You can offer various payment options to your customers, including bank transfers, cards, e-wallets and QRIS.
Discover the many other features Aspire offers to streamline and optimize your business's financial management. Contact our team today!
Frequently Asked Questions
How can Aspire support the unique financial needs and challenges of mid-sized businesses?
Aspire offers a comprehensive suite of expense management solutions tailored for mid-market companies. This includes sophisticated corporate cards, advanced budget controls, and streamlined claims and approval policies, all designed to enhance financial efficiency.
How quickly can a mid-market company integrate Aspire's solutions into existing systems and workflows?
Integration with Aspire's expense management solutions is swift and seamless. Mid-market companies can swiftly implement corporate cards with tailored features, set up nuanced budgets, and establish streamlined claims and approval processes, ensuring minimal disruption to existing workflows.
How does Aspire compare to competitors for international money transfers?
Aspire excels in international expense management with FX fees up to 2x cheaper than traditional banks.
Global payments are offered by various providers through business accounts. Read our article to know more about types of business accounts and how to choose the best one for your business. There are many banks and fintech companies offering business accounts to businesses in Singapore. We have covered them all in our blog, you can click the links to view accounts offered by various banks such as DBS, OCBC, Maybank etc.
However, if you are a start-up or a growing business, chances are you may not meet the eligibility criteria for most of these banks or find their charges to be expensive for your liking. You can consider opting for Aspire multi-currency account for global payments which offers you all the benefits, with eligibility criteria which are less stringent. Read our article on bank charges in Singapore for a quick and easy comparison.
What level of customization does Aspire offer to meet the specific financial requirements of mid-market clients?
Aspire understands the diverse financial needs of mid-market clients and provides a high level of customization to tailor solutions accordingly. This includes the ability to customize corporate cards with specific spending limits, rewards, and benefits that align with the unique requirements of each client.
Additionally, Aspire's budgeting features are adaptable to accommodate the distinct financial structures of mid-market enterprises. The platform also allows for fine-tuning approval policies, ensuring they align with the specific workflows and compliance standards of individual mid-market businesses. This commitment to customization empowers mid-market clients to optimize their expense management in a way that best suits their financial goals and operational preferences.
Is there a minimum balance required for Aspire Business Accounts?
No minimum balance is required to keep your SGD, USD, EUR, GBP and IDR Accounts activated.
Can Aspire's corporate cards be customized to cater to the specific needs of consulting teams on the go?
Yes, Aspire's corporate cards are highly customizable. Consulting teams can benefit from tailored spending limits, travel-centric perks, and real-time transaction tracking, ensuring that the cards meet the unique requirements of professionals on the move.
How does Aspire support budget management for consulting projects and travel expenses?
Aspire's platform offers sophisticated budget controls that consulting companies can adapt to project-specific needs. This includes setting project budgets, tracking expenditures, and receiving real-time insights to ensure that expenses align with project goals.
What are Aspire Corporate Card FX rates?
At Aspire, we want you to pay the lowest rates in the market.
- Zero card activation fees
- Zero card transaction fees
- Best FX rates, up to 2x cheaper than banks
How does Aspire help consulting companies enforce expense policies and approvals for travel expenses?
Aspire streamlines the claims and approval process, allowing consulting companies to establish and enforce expense policies seamlessly. Customizable approval workflows ensure compliance with company policies and industry regulations.
Is Aspire's platform scalable for consulting companies of varying sizes?
Yes, Aspire's platform is scalable and caters to consulting companies of all sizes. Whether you're a boutique consultancy or a larger firm, the platform's features can be adapted to meet your specific travel and expense management needs.
How can I open a business account in Singapore?
For a business account in Singapore, Aspire is an excellent choice. With a focus on startup and SME needs, Aspire offers a seamless and transparent banking experience.
Benefit from their user-friendly online platform, no minimum balance or account opening fees, and dedicated support for businesses of all sizes.
Aspire is designed to streamline your financial management, making it an ideal partner for entrepreneurs in Singapore.
How long does it take to open an Aspire business account?
Registration with Aspire takes less than 10 minutes which you can do via our website or mobile app.
Once registered, we will get back to you within 5 business days on whether your account has been activated or if we need further documents from you.
Our account verification process varies according to the nature of your business. In exceptional cases, it can take up to 7 days to process your documents.
How can Aspire's corporate cards benefit my startup?
Aspire's corporate cards offer a range of benefits for your startup. Earn 1% unlimited cashback on qualified spends, simplify expense management, enjoy streamlined transactions, and gain real-time insights into spending. With customizable limits, integration with accounting software, and enhanced security features, Aspire's corporate cards are designed to empower your startup's financial efficiency and provide added convenience for your team.
Is Aspire suitable for both early-stage and established startups?
Absolutely, Aspire caters to the needs of both early-stage and established startups. Whether you're just beginning your entrepreneurial journey or have an established business, Aspire offers tailored financial solutions to help streamline your operations.
From managing expenses and optimizing workflows to providing valuable financial insights, Aspire's platform is designed to adapt and scale with your business as it grows. The flexibility and scalability of Aspire make it a suitable choice for startups at various stages of development.
Is there a minimum balance required for Aspire Business Accounts?
No minimum balance is required to keep your SGD, USD and IDR* Accounts activated.
However, we recommend keeping your subscription plan amount available on your balance to ensure you're up to date with your payment every month.*
To create a recipient or make any transaction on your IDR Account, you'll need to have a minimum balance of IDR 10,000 on your account.
