Two B.C. credit unions launched a new text-messaging banking service this week, the first of its kind in Canada, according to the companies.

Coast Capital Savings and Mount Lehman Credit Union now offer text or Short Messaging Service (SMS) banking, which allows registered clients to get account information over a cellular phone through text messaging.

“Canadian businesses in general have not taken full advantage of the tremendous opportunities that texting provides to build customer relationships,” said Sheila Baker, Coast Capital Savings’ chief information officer, in a release. “We’re always looking for ways to connect with the youth demographic and SMS banking will appeal to this group, but we also know more and more adults are texting, and the convenience of text-based banking will make it attractive to all age groups over time.”

The two organizations are serving as pilot credit unions for the text-banking project, which is being implemented in partnership with Credit Union Central of B.C.

Currently, customers can check their account balances and view recent transactions on all their accounts using the new service, but the credit union said that several more account management options will potentially be added in future, including the ability to sign up for various alerts.

Peter Barnes, president and CEO of the Canadian Wireless Telecommunications Association (CWTA), said the new service demonstrates the potential Canadian companies have to tap texting as an added customer service channel and a way to engage with their market.

“There are lots of ways businesses can use texting and application of the technology in the area of banking may well become a staple offering from all financial institutions as the texting trend continues to heat up in Canada,” said Barnes.

Coast Capital said the service is designed to work on phones from Canadian mobile carriers that offer text messaging and is free from the bank’s standpoint, although standard text messaging fees will apply as per individuals’ phone contracts.

“Unlike other types of mobile banking and online banking, the great thing about text-based banking is that you don’t need Internet access to use this service,” Wendy Lachance, manager, e-business development at Coast Capital Savings. “We expect that customers will find text-based banking more accessible and convenient than other banking channels for simple account queries.”