WhatsApp for BFSI: How to Use WhatsApp for Banking?

A peek into the automation capabilities of WhatsApp for BFSI

Customers expect excellent customer service regardless of industry. But the support banks are providing still falls flat. According to a study by The Financial Brand, 64% of customers stated that their mobile banking app did not allow them to quickly resolve a customer support issue—if it resolved it at all.

That's where WhatsApp Business API comes in handy. Designed specifically for medium to large businesses, this robust tool empowers teams to engage with multiple customers at scale. Sales teams can build tailored communication flows that address customer needs through automated responses, interactive messages, and intelligent chatbots.

The WhatsApp Business API improves your sales efforts because it allows you to:

• Automate WhatsApp messages at scale: Automate WhatsApp messages at scale: Banks can streamline customer interactions by sending instant responses, transaction alerts, account balance updates, loan approval notifications, credit card payment reminders, fraud detection alerts, personalized financial product recommendations, customer support assistance, and feedback requests.

• Create a Personalized Banking Experience: The WhatsApp Business API enables banks to segment customers based on financial behaviour, demographics, and life stages, delivering tailored messages with relevant insights, financial tips, and product recommendations. Through a mix of text, images, and interactive features like account management shortcuts, loan calculators, and secure transaction links, banks can ensure a seamless, responsive, and highly personalized communication channel—enhancing customer engagement and financial well-being at every stage of their journey.

• Upgrade post-purchase customer experience: For banking customers, post-transaction engagement is key to building trust and satisfaction. With WhatsApp API, banks can streamline and personalize financial interactions by delivering real-time transaction alerts, loan application updates, investment portfolio notifications, and bill payment reminders—all directly through a secure chatbot.

We’ll guide you through the process of setting up your WhatsApp Business API trial account with Gallabox in just five simple steps.

• Enter your details to sign up for the free trial on gallabox.com.
• Invite your team and adapt to the roles and access levels to ensure everyone can collaborate effectively.
• Importing data is easier with Gallabox, which lets you import contacts individually or in bulk from tools such as Google Sheets, CRMs, or other third-party software. 
• Now that you've quickly set up the WhatsApp Business API with Gallabox let's see how you can best use it for your travel company. 
• With your team and contacts in place, you're now ready to build WhatsApp Chatbots, launch Drip Marketing campaigns, or create engaging WhatsApp Flows.

Gallabox integrates effortlessly with your existing tech stack—whether it’s your CRM, e-commerce platform, payment gateway, or marketing tools—bringing all your operations together in one unified platform.

Now that you’ve successfully set up the WhatsApp Business API with Gallabox, let’s explore how you can make the most of it for your travel business.

1. A large and engaged user base

With over 2 billion monthly users, WhatsApp gives you access to a huge and active audience. From young professionals who want to make their first investments to older customers handling insurance renewals, it helps you easily connect across different age groups.

2. Improved open rates

A lot of businesses still rely on SMS for follow-ups. And it's because they think it guarantees visibility. But that’s not true anymore. Infact, WhatsApp messages have around 8% higher open rates than SMS. So if someone has shown interest in your service, a reminder sent here has a better chance of being read.

3. Higher click-through rates

WhatsApp doesn’t just get opened—it gets clicked. Click-through rates on campaigns can go as high as 45 to 60%, far more than what you’d see on email. If you’re sharing product details, application links, or brochures, they’re far more likely to be seen and acted on.

4. Simplifies onboarding

For many customers, onboarding with banks can be a long and tiring process. With WhatsApp, this process can be digitized for first-time users. Banks can share clear instructions, helpful visuals, and video guides to walk customers through each step.

5. Improved conversion rates 

The quicker you respond to your customers, the fewer drop-offs you'll have. You can send brochures, explain products, and share application links in real time, allowing your sales team to close leads faster without relying on follow-up calls or long email threads.

6. Builds long-term customer trust

When people want to invest in insurance, mutual funds, or even take out a loan, they are often more cautious and thorough when choosing a BFSI company. That’s why trust is so important. Using WhatsApp Business, which comes with a verified badge (blue tick), helps establish authenticity and shows customers that your business is genuine and trustworthy.

Plus, WhatsApp makes it easier to stay in touch regularly. When customers feel supported and updated at every stage, they’re more likely to stick with you and even recommend your services to others

1. Lead generation process 

With click-to-WhatsApp ads, you can allow your audience to send a message directly from an ad they saw on platforms like Facebook or Instagram to your WhatsApp account. Using the WhatsApp Business API solution, the conversation can be entirely human-led or automated.

Look at the example. When a person clicks on the WhatsApp button, they will directly reach the bank's WhatsApp page, where they can seamlessly converse with the bank's chatbot. After collecting the contact details, your WhatsApp chatbot can move on to the qualification or persuasion stage. 

With tools like Gallabox, setting up a WhatsApp click-to-ad campaign is fairly simple. All you have to do is:

• Set up a WhatsApp chatbot using Gallabox's WhatsApp chatbot platform that handles multiple conversations simultaneously.
• Display product catalogues and lists of services within WhatsApp to engage customers and reduce drop-offs.  
• Generate faster payment links and collect payments within WhatsApp so that customers won't need to leave the app even once, making it a smooth experience for you and the users.

These click-to-WhatsApp ads can engage users of all funnel stages, from new customers with questions about your bank's offering to loyal customers. CTWA ads help brands leverage this reach and effectively distribute promotional offers, capture user interest, and guide them throughout the purchase process for higher conversion. 

2. Creating a frictionless onboarding process

One of the top pain points for banking customers is account creation and onboarding. Over 5 billion euros are lost every year due to onboarding drop-offs, as 68% of bank application users abandon the process. 

The key reasons for abandonments are:

• Application processes are taking too much time
• Too much personal information is required
• There is a lack of fully digital options, and instead, customers have to visit a branch

These processes are taking too long for tech-savvy customers who expect to access services as swiftly as social media login. 

A financial institution can help in account opening and onboarding by deploying a Whatsapp chatbot for banking and finance. You can send them different types of messages, including:

• Welcome message
• Account opening confirmation
• Debit/Credit Card Delivery
• Account Activation
• Online Banking Credentials

Banks can leverage the UI elements offered by WhatsApp commerce to make the conversation flow more seamless. With list message buttons, brands can present a choice of up to 10 alternatives in a menu-type view. Customers can type or choose from the list menu to continue the conversation. 

3. Facilitate instant real-time payments 

Regulations like open banking and the Payment Services Directive (PSD2) make the industry more competitive. These regulations encourage using APIs (like the WhatsApp Business API) for seamless transactions. 

The real-time payment process itself is fairly simple:

The user or business initiates the payment through WhatsApp. The payment request later undergoes authorization, where the bank verifies the user's identity and checks for sufficient funds. Once authorized, a secure message containing payment details is sent through the RTP network. Based on the validation or liquidity check, the payment is then accepted or rejected. 

Here's the step-by-step process of enabling WhatsApp Payments for your business profile:

Step 2: Connecting Payment Gateways

If you're an Indian business using Gallabox with Indian phone numbers, you’ll have access to our exclusive list of native payment gateway integrations.

Before diving in, be sure to review the WhatsApp Business Compliance for India guidelines carefully—they’re essential for building a sustainable and compliant business presence on WhatsApp.

Gallabox supports seamless integrations with leading payment processors like Razorpay, PayU, and more.

If you already have an account with any of these providers, our team can quickly link it to your WhatsApp setup, enabling fast and efficient payment collection. To get started, reach out to our Customer Success team—they’ll be more than happy to help.

4. Automate customer support 

Consumers rely on real-time support for everything from assistance to financial transactions. 

In fact, 79% of consumers prefer live chat support because it means that they receive assistance right away. Modern consumers are also very self-sufficient, so much so that 4 out of 5 customers expect to see more self-service options from financial institutions.

A WhatsApp Chatbot mimics human conversation through text on the WhatsApp messaging platform. It can automatically respond to customer inquiries, ranging from customer service to sales, and can be integrated using the WhatsApp Business Platform.

Here are a few support functions that a WhatsApp chatbot for banking and finance can provide:

• Send marketing and service notifications to customers, including reminders about recurring payments and transfer limits. 
• Assist with account details, interest rates, and updates, including password resets. 
• Deliver essential documents such as invoices, e-policies, and e-receipts. Proactively notify customers about loyalty points, exclusive offers, and promotions. 
• Support credit card management, including blocking, renewal, and related actions.

5. Provide personalized recommendations

Customers now want their banks to understand their interactions and tailor their offerings accordingly. Calling customers to offer loans and credit cards is not enough. Banks need to understand customers' journeys on all channels and provide personalized services according to their past interactions. 

However, according to the state of CX report in India, 72% of businesses struggle to personalize content according to customer needs, and 43% of companies find it challenging to adapt quickly to customers' preferences. 

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So, how can financial providers ensure they're meeting the mark in supporting their customers' financial needs? Personalization is key. Half of consumers expect financial providers to offer tailored tools, products, and services supporting their financial goals.

Gallabox's banking chatbot generates context-aware responses on WhatsApp, ensuring every interaction remains relevant and conversationally intelligent. This provides an intuitive experience without sacrificing the human touch.

For instance, before issuing a loan amount and deciding on a corresponding interest rate, Gallabox's chatbot analyses the prospect's credit history. CIBIL, utilization of credit, tenures of previous debts, and so on about the borrower. Based on this, the chatbot will recommend the various credit options available to the borrower. Post this, customers can choose the best option and verify the bank details to secure the loan.

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Other key expectations for personalization include:

• Discounts or promotions for brands they already use (44%)
• Personalized insights within online platforms or apps to enhance spending awareness (43%)
• Proactive alerts and recommendations for improved money management (42%)
• Customization options for cards, such as selecting a displayed name (36%)
• Automated budgeting and spending analysis (31%)

6. Upload documents 

The impact of additional document requests when onboarding businesses extends beyond simple inconvenience. What should have been a smooth welcome experience for new customers often turns into weeks of back-and-forth communication, creating a ripple effect on both financial institutions and their customers. 

WhatsApp chatbot for financial institutions allows you to simplify the document submission process by providing real-time document requests and verification. Here's how it works:

• One-Click Requests: Agents can initiate document requests with a single click, using pre-made fields customized to each document type to minimize manual work. ‍
• Smart link generation: The system automatically generates secure, personalized links for document submission that can be shared through WhatsApp. 
• ‍Immediate verification: As customers upload documents, our WhatsApp bot instantly verifies them, ensuring they meet all requirements before submission. 
• ‍Real-time feedback and resolution: No more waiting–customers know immediately if their documents are accepted or if they require any adjustments. If the customer provides incorrect documentation, they receive an AI-generated message explaining why and with instructions on how to provide the correct document.

7. Send alerts and notifications

Banking notifications update customers on their financial activities and transactions in real-time. These notifications instantly inform users about important events, such as withdrawals, deposits, or payment due dates.

Since users of WhatsApp spend 16 hours and 32 minutes per month or 33.1 minutes per day on the app, it is the best channel for sending alerts and notifications. 

These banking notifications come in several distinct types, each serving a specific purpose in enhancing the customer banking experience:

• Transactional notifications: These notifications keep users informed about specific account activities, such as successful transaction confirmations and balance updates, when they reach certain thresholds. 

• Security alerts: These notifications alert customers about potential security threats, suspicious activities and potential fraud attempts to save customers from being scammed. ‍
• Account updates: These notifications inform customers about significant changes to their banking relationships. For instance, if your account upgrades, you'll receive a notification such as "Your account has been upgraded! Enjoy new features like higher withdrawal limits and lower fees."

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• Promotional notifications: Banks can also leverage these notifications for marketing purposes through promotional communications. These include alerts about new financial products and services and notifications about limited-time offers and discounts.

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• Financial planning and support: By sending budgeting tips and investment advice through WhatsApp notifications, banks position themselves as supporting partners in their customers' financial journeys. 

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These promotional banking WhatsApp notifications can drive customer interest and increase product adoption when executed effectively. 

Case study 1: Banco Bolivariano

One of Ecuador's largest banks, Banco Bolivariano, was already known for being tech-savvy, but they wanted to take things even further. With more customers going digital, the bank introduced a WhatsApp chatbot for faster, more personalized assistance. This change boosted both sales and customer satisfaction.  They saw the following results- 

• 98% of customer queries handled on WhatsApp
• 56% of credit card add-ons sold via WhatsApp
• 46% drop in call center load
• 70% of customers now prefer WhatsApp over other channels

Case study 2: Qatar Insurance Company

Qatar Insurance Company (QIC) is a well-known insurance provider in the Middle East. As their business grew, they ran into challenges. Their old systems couldn't keep up with rising customer expectations. They were dealing with messy communication through personal WhatsApp numbers, slow response times, scattered workflows, and a lack of clear data insights.

To fix these issues, QIC completely overhauled their customer communication system with the help of Gallabox. Here’s what they did-

• Replaced personal WhatsApp accounts with a centralized team inbox
• Set up automated lead qualification
• Integrated WhatsApp Business with their CRM for better, more contextual conversations
• Enabled AI-powered 24/7 support to handle customer queries instantly

As a result, they saw big improvements-

• 31% increase in team productivity
• 102% growth in lead generation
• 2x improvement in customer satisfaction (CSAT) ratings

Case study 3: Mukuru

Another company that uses WhatsApp for the BFSI sector is Mukuru. Muruku is a leading name in Africa’s financial services space.  Their goal was to simplify services, reduce costs, and improve efficiency.

To make this happen, they integrated the WhatsApp Business Platform into their operations. This allowed them to connect with customers more effectively and deploy a WhatsApp chatbot that resolves queries 24/7. And the results were impressive. They clocked-

• 15% increase in customer satisfaction (CSAT) scores
• 25% of new sign-ups came via WhatsApp
• Saved over $1 million by cutting down on USSD and SMS costs

1. Data privacy concerns

It’s not something you say out loud, but it’s something that must be top of mind. Privacy matters. BFSI companies need to be careful with customer data, follow regulations like GDPR and CCPA and comply with the platform’s commerce policy. The good news is that WhatsApp’s encryption and data protection features help keep things secure.

2. Integrating with existing systems

You can connect WhatsApp Business API with your current IT system for a smoother process, but it can be a bit tricky and may require some technical know-how. Luckily, WhatsApp Business Solution Providers  (BSPs) are available to help. They have the right tools and expertise to link WhatsApp with your other business systems.

3. Messaging costs and planning

The cost of using the WhatsApp Business API can vary based on how many messages you send. BFSI companies should plan their messaging strategy carefully to avoid unexpected costs. To help estimate your communication costs, you can use our free WhatsApp Conversation Pricing Calculator.

4. Opt-In Consent

How would you feel if you received messages from a company you never signed up for? It’s annoying, right? Your customers probably feel the same way. Before sending any messages, whether promotional or follow-ups, you need to get explicit opt-in consent from them. This keeps things in line with regulations and shows your company respects their privacy.

1. What is WhatsApp for BFSI?

WhatsApp for BFSI refers to the use of WhatsApp Business API by banks, financial institutions, and insurance companies to provide seamless communication, customer support, transaction alerts, and other financial services through WhatsApp.

2. How can WhatsApp be used to send transaction alerts and notifications securely?

Businesses can use WhatsApp's API with end-to-end encryption to securely send real-time transaction alerts and notifications. Authentication measures like OTP verification ensure messages reach the correct user.

3. How can WhatsApp assist in the loan application and approval process?

WhatsApp can streamline loan applications by collecting documents, verifying details via chatbots, and providing real-time status updates, making the process faster and more convenient.

4. What types of messages can BFSI businesses send on WhatsApp?

• Transactional messages: Account updates, payment confirmations, loan EMIs, and investment alerts
• Promotional messages: Special offers, new financial products, and investment opportunities
• Customer support messages: FAQs, complaint tracking, and service requests

5. Can WhatsApp be used for customer service in BFSI?

BFSI companies can deploy AI chatbots or live agents to assist customers with inquiries, complaints, and service requests, ensuring quick and convenient support.

6. Can WhatsApp be used for real-time transactions in BFSI? 

WhatsApp can be used in BFSI to provide real-time updates on account activities, loan statuses, and insurance details. It allows companies to keep customers informed quickly and securely and also improve their experience with timely and relevant information.

7. What are the regulatory considerations for BFSI companies using WhatsApp?

BFSI companies need to make sure they follow data protection laws like GDPR and CCPA. While WhatsApp encrypts messages, businesses must get customer consent and handle their data securely to stay within legal boundaries and avoid issues.

8. Can WhatsApp help with customer onboarding in BFSI?

Absolutely. All can be done on WhatsApp, from onboarding to uploading documents, to sending real-time instructions and updates. Plus, it also allows new customers to reach out instantly with questions which makes the whole process smoother and quicker.