Banking and financial services institutions in India face growing pressure to modernize how they communicate with their customers. With evolving customer preferences for digital channels and increasingly stringent regulatory requirements, streamlining customer communication has become a necessity for the BFSI sector.
But when they try to streamline their customer communication, be it alerts, statements, or service messages, they often run into a trap: they're either forced to rely on legacy Customer Communication Management (CCM) systems or settle for a basic Communications Platform as a Service (CPaaS) provider.
Both approaches don't help them meet their goals.
They need a way to manage multiple channels, ensure compliance, control costs, and personalize communication for all their customers in real time. And they need to do all of this without adding too much burden onto their tech teams.
How can banks achieve all of this?
There is a way.
By the end of this blog post, you will understand why traditional CCM tools and CPaaS vendors are no longer enough, and will also understand what the better alternative looks like.
The problem with legacy CCM platforms
CCM tools were originally built for a print-first world. They worked well when customer communication meant sending out policy documents or monthly statements by email. But today’s customers—especially digital-native generations—expect fast, interactive, two-way communication across multiple channels. That includes WhatsApp, in-app messages, SMS, and even emerging formats like Rich Communication Services (RCS).
Traditional CCM platforms can't keep up because they don’t support real-time communication. They’re not equipped for two-way conversations. And they struggle with channel integration, often creating silos that result in fragmented customer journeys. For example, a customer might ask a question on WhatsApp and then receive an unrelated email later with no context.
CCM platforms also lack the agility to quickly adapt to compliance changes or customer preferences. Many still depend on static templates and manual processes, which means banks waste time updating content or navigating multiple portals just to reconcile messaging costs.
And why CPaaS platforms alone doesn’t fix it?
Switching to a CPaaS vendor might seem like a logical upgrade. These platforms offer APIs to send messages over SMS, email, or WhatsApp. But most CPaaS providers are built to sell volume. They care more about message throughput than about efficiency, orchestration, or 100% deliverability.
Banks that use CPaaS often end up managing multiple vendors, one for each channel. This creates new problems: operational inefficiency, high costs, poor visibility, and difficulty complying with RBI mandates for localization and auditability.
In fact, many Indian banks told us they’re actively moving away from third-party CPaaS vendors, preferring direct telco integrations to stay compliant. But without an orchestration layer in place, this move creates even more engineering complexity.
What does the BFSI sector need today?
Banks and institutions that are part of the BFSI sector need a communication infrastructure that can unify channels, vendors, workflows, and compliance requirements into one platform.
This ideal platform should offer the following capabilities:
Channel orchestration: Route messages dynamically across SMS, WhatsApp, email, and push—not just to reach customers, but to optimize for delivery, cost, and compliance. For instance, send OTPs via SMS but switch to WhatsApp if the user is in a low-signal zone.
Failover and delivery guarantees: Banks need failover systems that automatically reroute messages when a provider is down. This is essential for critical alerts like fraud warnings or transaction approvals. Manual failovers don’t cut it.
Real-time analytics: Without centralized observability, teams spend hours gathering reports from different vendors just to reconcile bills or troubleshoot delivery failures. A modern platform gives real-time visibility across all channels in one dashboard.
Consent and compliance built-in: Platforms must support auto-deduplication of numbers, masking of PII, role-based access control, localization, and adherence to RBI, TRAI, and DPDP norms. Many CPaaS providers simply don’t go this far.
Centralized template and preference management: Banks should be able to manage message templates and user preferences from a single interface, without involving their engineering team for every change.
What makes Fyno different?
Fyno isn’t just another tool for sending messages—it’s a communication infrastructure built from the ground up for regulated industries like banking, insurance, and fintech. Every feature is designed to reduce engineering burden, improve compliance, and deliver better customer outcomes. Here’s how:
Unified orchestration across all channels and vendors: Fyno acts as a orchestration layer that connects all your channels and vendor APIs into a single platform. You can route messages dynamically, set channel preferences, and manage failovers—all from one place. This reduces cost, simplifies management, and ensures consistency across touchpoints.
Automated failover and delivery optimization: Fyno provides intelligent failover. If a message fails on one channel or vendor, it automatically switches to another—ensuring near-100% deliverability. You can also configure routing rules based on cost, priority, and user preference.
No-code workflow builder: Banks can design entire communication journeys using a drag-and-drop interface—no development needed. From onboarding flows to payment reminders, you can build, test, and launch without waiting on engineering teams.
Centralized template and preference management: Fyno allows real-time creation, editing, and deployment of message templates across all channels. It includes a WYSIWYG editor and governance features like audit logs, maker-checker flows, and UAT environments.
Compliance-first architecture: Fyno is fully compliant with RBI, TRAI, and the DPDP Act. Features include data localization, masking and hashing of PII, end-to-end encryption, and full audit trails and delivery logs.
Deep analytics and observability: Fyno’s dashboard provides real-time visibility into message delivery, channel performance, vendor SLAs, and customer engagement metrics. This helps banks optimize communication strategies, reconcile costs, and detect anomalies faster.
Instant integrations and scalability: With 100+ ready-to-use integrations, Fyno supports instant onboarding of new channels or vendors. It’s universally compatible with core banking systems and doesn’t require changes to your existing APIs.
Cost control and optimization: Banks using Fyno have reported up to 40% savings in messaging costs. The platform reduces wastage through link shortening, invalid number filtering, and smart channel selection.
Multi-tenant support for large institutions: Fyno includes dedicated workspaces for different teams or clients. Each workspace can have its own templates, workflows, and reporting—while still being managed centrally.
What’s at stake?
The communication layer is no longer just a support function. It directly affects customer trust, regulatory compliance, and operational cost. Banks that don’t modernize risk more than just delayed messages—they risk lost revenue, penalties, and customer churn.
Relying on outdated CCM platforms or barebones CPaaS vendors is no longer sustainable. The industry needs communication infrastructure that is intelligent, unified, secure, and agile.
It’s time to think beyond SMS gateways. The future belongs to platforms that can orchestrate communication at scale, with compliance and customer experience baked in.
