Displaying items by tag: SMS notification
The year 2020 has taught a lot to the financial sector and financial institutions. One of the biggest and the major lesson that the financial institutions has learnt in the year 2020 is the importance of the Digital platforms in execution of their activities. Due to the outbreak of the Covid-19 pandemic many of the activities that involves physical meetings were banned as part of precaution against the spread of the pandemic Covid-19.
An SMS campaign is a form of marketing that allows you to interact with your customers via text. It's similar to an email campaign, but is faster and easier to create since it requires no creative other than an initial campaign to get your customers' numbers, and your 160 character message.
The global financial institutions operations have changed lately to accommodate the best global economy, one that is more efficient and manages the risks that may tend to occur due to humanly errors. This is also affected by the invasion of technology and digitalizing monetary activities lately.
The increase of non-performing loans (NPL) is one of the critical challenges that banks and financial institutions face nowadays. The benchmark of non-performing loans for bank industry is set to 5 per cent but in the third quarter of the year 2017, unaudited accounts for 19 banks and financial institutions indicated that NPLs ranged between 4 per cent and 51 per cent which is very high from the benchmark. Higher per cent of NPL will mean lower in collecting of repayments, no return of expected interests and even the borrowed principal. This reason could lead to institution bankruptcy.
One of the strategies that BOT recommended to banks and financial institution on reducing NPLs is to establish NPLs policies, some of them are arrears management policy, debt recovery policy, collateral management, valuation and reporting policy and early warning policy. Also, some of the banks have started to provide a group loan on their way of reducing NPLs as group are easy to make follow up.