Solutions by Text (SBT) provides a compliance-first text messaging and payments platform that helps consumer finance companies engage customers and drive actions like loan origination, servicing, and bill pay/collections via text via SMS. Pulse 2.0 interviewed Solutions by Text (SBT) Chief Product Officer Nick Babinsky to gain a deeper understanding of the company.
Joining The Company
What made you the right fit for joining SBT? Babinsky said:
“I joined Solutions by Text (SBT) as Chief Product Officer because of what the company is building—a future in which finance is truly mobile-first, conversational, and safe for all consumers. The cutting-edge technology and vibrant culture of innovation represented an opportunity to develop new products that benefit both businesses and consumers. With a compelling product and a dedicated team behind it, I had to dive in.”
“My experience with B2B and fintech platforms also aligned well with SBT’s trajectory and its drive to innovate in a regulated industry. I saw a tremendous opportunity to help SBT expand its messaging platform tailored to consumer-centric financial institutions and technology businesses. The chance to transform conversational finance presented a unique challenge.”
Accomplishment
What has the company accomplished while you’ve been CPO? Babinsky shared:
“We’ve seen tremendous growth in the past year. In 2024, our platform volume doubled to two billion messages delivered. We achieved a 60% year-over-year growth rate and more than 30% annual bookings growth.”
“Our customers have seen incredible success with our platform. We’ve helped credit card issuers reduce support times by 40%, lenders increase funding rates, and collectors reduce delinquencies and mailing costs. As a result, we’ve seen our Net Promoter Score (NPS) reach a new high of 74.”
“By focusing on products that serve our customers’ needs and delivering real returns to their businesses, we’ve seen our own performance remain strong. We’ve achieved the “Rule of 40” benchmark, which measures growth and profitability for three consecutive years, while also surpassing a 135% net revenue retention rate.”
“As a result of this momentum, we are doubling down on both innovation and scale, recently raising a $110 million growth round co-led by Edison Partners and StepStone Group. Since then, we’ve brought exciting new capabilities to market, ranging from embedded payment options, such as Apple Pay and Google Pay, to support for new messaging protocols, including rich communication services (RCS), and AI-enabled monitoring of message activity for maximum compliance.”
RCS
What is RCS? How will RCS impact financial communications, and what progress have you made? Babinsky noted:
“RCS transforms messaging into a visual experience with features that surpass not just SMS and MMS, but also the most advanced mobile apps. Secure, branded, interactive messages, featuring embedded media, clickable buttons, and call-to-action prompts, enable RCS to drive higher conversion rates, increase engagement, and deliver superior consumer experiences.”
“We’re driving RCS adoption in North America and have seen strong interest from financial institutions. Because it’s verified, it can build consumer trust, which in turn drives greater engagement—you’re more likely to use something you trust. It all contributes to a better customer experience. With Apple and Google now supporting RCS, its time has come.”
Current Products
What are the company’s current products and features, and what makes SBT superior to its competitors? Does SBT offer campaign services? Babinsky explained:
“Our FinText platform goes far beyond traditional messaging. We’re transforming how financial institutions connect with and interact with customers in real time. Designed specifically for the needs of regulated industries, FinText offers secure, two-way messaging, personalized and trackable URLs, journey and workflow automation through keyword responses, and flexible scheduling tools. The seamless integration of tokenized, embedded payments also sets us apart, allowing customers to make secure payments directly within a messaging thread. With robust reporting and an analytics dashboard that drives actionable insights for campaign performance and subscriber management, FinText enables businesses to turn conversations into real-time outcomes, such as bill payments, identity verification, and customer support resolution.”
“We understand the industry, and we have a scalable platform that addresses its current and future needs, especially in highly regulated spaces. With robust APIs, pre-built integrations, and fintech-grade security, we’ve evolved beyond a messaging platform; we’re the operating system for compliant customer communication. Our platform serves as a foundation that enables us to continually adapt to new use cases and create enhanced experiences.”
“Great technology should pair with expert guidance, so we work closely with our customers to develop and optimize messaging campaigns that deliver better business outcomes, whether it’s sending payment reminders, promotional messages, or personalized account updates. From strategy to execution, our team ensures every campaign is on-brand, compliant, and designed to drive measurable results. We don’t just hand over the tools. We partner every step of the way.”
Solving Communication Pain Points
How does SBT’s technology solve common communication pain points? Babinsky elaborated:
“Texting outperforms email and phone calls. While consumers increasingly ignore emails and phone calls, people read 98% of texts within five minutes. SBT enables faster loan origination, secure document collection via MMS, and self-service support via two-way SMS. Our clients reduce call volumes, boost conversions, and increase on-time payments.”
“RCS will add even more capabilities, allowing customers to address trust and security issues through its verified sender IDs. Our platform enables financial institutions to meet customers where they are – on their mobile devices – with compliant and effective communications.”
Key Challenges
What are some key challenges SBT has faced, and how have you overcome them? Babinsky acknowledged:
“One of the biggest challenges we’ve faced is navigating the tension between innovation and the strict regulatory requirements of the financial services industry. Unlike other industries, we can’t afford to ‘move fast and break things.’ Our clients are banks, credit unions, and financial technology leaders that demand secure, compliant, and scalable solutions from the start. To meet those expectations, we’ve embedded compliance into every layer of our FinText platform, from opt-in workflows and message routing to data handling. This compliance-first architecture has enabled us to innovate confidently while staying aligned with complex regulatory frameworks.”
“Another major challenge has been shifting the perception of messaging from a basic operational tool to a strategic growth driver. Many clients initially viewed texting as a cost center rather than a channel for conversion, retention, and revenue growth. Overcoming that mindset required extensive education, proof of benefits through supporting data, and hands-on support. That’s why we’ve built a strong customer success organization and campaign services to help clients unlock the true business value of messaging. We’re not just delivering features; we’re delivering confidence, and that’s helped us build lasting relationships with some of the most respected names in the industry.”
Evolution Of The Company’s Technology
How has the company’s technology evolved? Babinsky noted:
“What began as a single-channel SMS tool has evolved into an intelligent, enterprise-grade platform for modern financial services. Our technology supports two-way messaging and embedded, tokenized payments. We’ve transformed a simple communication tool into an intelligent solution for real-time customer engagement: a platform that supports the entire lending journey, from initial contact to payment. We’ve been able to do this by staying ahead of the market and anticipating the trajectory of customer expectations and compliance demands.”
“We don’t approach product evolution as simply a quest to add new features. We continually enhance every aspect of our platform to make it more integrated, responsive, and effective. We’ve built advanced analytics capabilities, developed robust APIs, and launched dynamic tools to help clients turn static messages into interactive experiences. Every step of our evolution has been guided by our customers’ needs and a commitment to making compliance a strength, not a hurdle. That principle has allowed us to innovate responsibly while delivering tangible, measurable outcomes for the financial services organizations we serve.”
Significant Milestones
What are some of the company’s most significant milestones? Babinsky cited:
“Dave Baxter became CEO in 2021, marking a significant turning point for SBT. Since then, we’ve consistently doubled our volume year-over-year, maintained top-tier retention and satisfaction metrics, and helped onboard new clients to texting. We’ve also received significant industry recognition, including being named one of the Best Places to Work, being included in the Inc. 5000 ranking of the fastest-growing private companies in America nine times, and winning a FinTech Breakthrough Award for Best Payment Facilitator Solution.”
Total Addressable Market
What total addressable market is the company pursuing, and what are your key markets? Babinsky assessed:
“The market is huge. We serve banks, credit unions, and fintechs that provide consumers with access to financial products that support and sustain their personal lives. In the U.S. alone, there’s over $17–18 trillion in consumer debt and $7 billion in bill payments processed annually. Traditionally, consumers have been forced to manage their finances using slow, paper-centric processes or by dialing into a 1-800 number. Consumers show a clear preference for text communications, meaning that each interaction supporting those loans and bill payments is an opportunity for an effective text interaction. And yet, research from Datos Insights shows that 41% of consumers never received a text from their lender during the loan application process. Clearly, there is a tremendous opportunity beyond things like simple payment reminders. We’re going to help lenders capitalize on that opportunity.”
“Our key markets include consumer finance, encompassing banks, credit unions, lenders, and accounts receivable management (ARM). Our customers are typically mid-to-large enterprises, not SMBs. We’re U.S.-focused, but we also serve international customers.”
Future Goals
How will SBT evolve in the next five to ten years? Babinsky concluded:
“We think that rather than downloading an app or creating another set of portal credentials, consumers prefer to text. We’re building security, immediacy, and convenience into the financial experience for consumers – i.e., conversational finance. This is unlocking incredible self-service and real-time customer experiences for account opening, loan applications, bill payments, and support interactions, all through verified, branded messaging threads.”
“RCS is a key part of that vision, as it unlocks app-like experiences in a simpler, more straightforward communications channel. We’re also advancing a responsible AI strategy that explores personalized conversations and intelligent routing while maintaining the highest standards of compliance.”
“Ultimately, we’ll help our customers shift more interactions to messaging, reducing operational costs while delivering the modern experiences consumers expect.”
