The Nilson Report is a publication for they payment systems industry, and in the February 2008 issue they indicate that banks intend to start using SMS to communicate with their customers. One of the primary reasons cited is the reading rate of text messages vs. email: 94% and about 50%, respectively.

Do you want to know why 94% of text messages are read? BECAUSE WE DON’T YET RECEIVE CRAP FROM BANKS OR OTHER BUSINESSES. I bet that 6% of text messages going unread are the free ones delivered from the cell phone providers indicating the addition of a few new towers. What useful communication do financial institutions hope to deliver in 160 characters or less, anyway? “You have overdrawn. You are now in the hole an additional $50. Standard texting rates apply to this message.”

I’m sure some marketing “geniuses” were sitting in a room on the 32nd floor in Midtown Manhattan saying, “Hey! You know what all the kids use to talk to each other these days? Text Messages! There’s a channel we’re not already flooding with useless information!”