Other wireless systems replicate these features and accumulate new features, such as the Handspring Treo 600 "smartphone" (a phone-PDA combination) that works on the cellular networks of more than one carrier and, with third-party software, not only can maintain constant contact with the user's POP3 e-mail account but also download and display e-mail attachments and perform other tricks. In fact the report notes that the ability of handhelds, which includes smartphones, to access and open Microsoft attachments-as the Treo 600 will do when coupled with third-party software like Documents to Go-is becoming essential for the full mobile enterprise experience.
These devices, says the report, are one reason for the development of wireless networks enabling remote workers to provide improved client support. Kountz notes the proliferation of broadband and wireless network services coupled with the development of Centrino and other advanced chipsets for laptops. (The fact that laptops are shrinking in size and weight doesn't hurt this trend either.)
Public wireless Internet access is another cog in the machinery driving this trend. "The standardization of access has definitely become much more commonplace," says Kountz. "[Mobile workers connect] not just at Starbucks these days. We live near a small breakfast-and-lunch restaurant that has a wireless 'hot spot.' In fact, the Episcopalian convent near us even has wireless access. Wireless technology no longer has a fearsome technological edge to it."
TowerGroup's report charts the expected rise in mobile technology use. It shows that approximately 10% of executives at financial services firms use mobile technology, a percentage the TowerGroup expects to rise to 35% by 2009. This will be driven by the variety of applications in addition to e-mail that are being designed for mobile deployment uses such as the mobile investment banker's need for market data streams and deal updates; the mutual fund wholesaler's need for client account records and performance information; or the need of any financial services industry participant to remotely manage personal information such as calendar and datebook changes or client profiles.
With greater mobility comes greater risks, however, the primary of which may be compliance and security risks.
Today's compliance environment forces enterprise firms to more tightly
control and ensure the compliance of individual reps' work products.
Doesn't the decentralization effect of mobile technology run counter to
this need? "Mobility isn't just a one-way channel for isolated
communication," says Kountz. "It must be integrated into a larger
system. You won't see a lot of reps text-messaging clients, although
there are ways to do that."
Kountz believes there is less risk from compliance than from the problematic physical security of mobile devices like PDAs and laptops. "If you have ten reps using in-house desktop computers, you can control the security of the data on those desktops with a firewall. When the ten reps go out into the field with five Blackberries and ten laptops, these moneymakers become access points in airports, on trains, in Starbucks. Even if they're not logged onto the Internet, laptops holding confidential client information can be stolen. Will those data be secure when that happens?" You've got a bigger breach than if you didn't have access to mobile solutions."
Which is why the TowerGroup report stresses the need for guidelines when enterprises or small advisory firms deploy mobile technology. First, consider the goal and the user. What data, if delivered remotely, will have the greatest efficiency impact? How can users be involved at an early stage to maximize their comfort and proficiency with new devices and applications?
Second, consider the market for mobile solutions. Standards do not yet exist, so it's more important for users to choose solutions that best support their firm's needs and generate a return on investment. Third, choose mobile partners who will provide the best business results within the firm's budget or timeframe. Last, consider security issues and how to best integrate new mobile channels into the firm's "existing multi-channel infrastructure."
Suffice it to say, mobile devices and applications are the latest example of technology enhancing the financial advisory experience. Large enterprises and small advisory firms alike will use this technology to compete for client access and loyalty through enhanced communication possibilities. There is perhaps an irony, in that relationship-building has long been thought to be a face-to-face proposition. With the current direction of mobile technology, the number and variety of client contact mechanisms promote better client service , making physical access to the client relatively less important.
David J. Drucker, MBA, CFP
([email protected]), a fee-only financial advisor since 1981, is
editor of the Virtual Office News monthly newsletter
(www.virtualofficenews.com) and a principal in Practice Merger
Consultants Ltd. (www.practicemergers.com).