iPhones may be all the rage, but financial advisers should consider their options before picking their next smart phone

There is no end in sight to the hype surrounding the iPhone.

More than a few advisers have asked me whether Apple Corp.’s slick device, which remains the darling of the consumer smart phone market, is right for them, or if they should get some other smart phone.

The quick answer to this is that every adviser has to weigh a few things first. If you simply want to embrace the cool factor and have no plans to integrate the phone with your work, then by all means march over in person – or virtually – to an Apple store.
On the other hand, if you hope to work with your phone, then you have a few things to consider. First, keep in mind that there are plenty of less-hyped – but in some cases more useful – smart phone options available.

Smart phones, the catchall term for any hand-held device that supports voice calling, Internet browsing, e-mail and third-party mobile applications, can already in some cases be used to access an adviser’s portfolio management and customer relationship management applications, among others.

Things that should also be considered:

Infrastructure

There is absolutely no question that the iPhone has the best interface out there and, of course, some 85,000 applications available to go along with it, but in the end this is only a part of the equation — and a relatively small part of what a financial adviser should consider, said Sascha Segan, lead analyst for mobile phones at PC Magazine in New York.

The first question an adviser has to ask is whether their own IT department (if they have one) has a specific mobile operating system requirement, said Mr. Segan, who is responsible for testing, benchmarking and evaluating mobile phones and other hand-held devices for the magazine.

“Most financial services businesses have some sort of IT infrastructure requirements that addresses Sarbanes-Oxley [Act of 2002] or other regulatory requirements and may require you to go with a Windows Mobile or BlackBerry smart phone because that’s whose infrastructure they have invested in to support mobile connectivity,” he said referring to Microsoft Corp., creator of the Windows Mobile operating system and Research In Motion Ltd., which is behind the BlackBerry.

Applications & ergonomics

Another factor that comes down in favor of the BlackBerry when it comes to financial advisers is that there is already an abundance of financial services applications to pick from.

In addition, there are also several new BlackBerry devices scheduled to make their debut over the next few months according to Mr. Segan. Among them is the BlackBerry Storm 2, a next-generation version of the popular BlackBerry Storm smart phone which uses the Verizon network. But advisers seeking a BlackBerry with a keyboard should probably hold out for the Bold 2, which is also due to be released soon.

The dominance of the BlackBerry in the financial services sector is no secret.
For instance, Darren Tedesco, vice president of innovation and strategy with independent broker-dealer Commonwealth Financial Network, said that about 37% of the firm’s advisers use BlackBerrys. He said that the second most common mobile operating system found among Commonwealth advisers is Microsoft Windows Mobile.

In fact he himself owns the HTC Touch Pro which runs on the Windows Mobile 6 version of Microsoft’s operating system. That phone’s pullout, or kick-out, keyboard makes a big difference to him.

This brings up an aspect about phones that Mr. Tedesco and PC Magazine’s Mr. Segan both make — if you anticipate that e-mail, texting, or another keyboard-centric application are going to be important, make sure that this aspect of your favored device literally fits you.

“If you’ve got a decent keyboard, you have a huge advantage when typing e-mails,” said Mr. Tedesco.

In fact Mr. Segan recently reviewed and raved about the Touch Pro2 and its roomy five-row keyboard and large touch screen.

“It’s the king of Windows phones in the U.S., especially the Sprint model,” he said.
Nothing beats physically laying hands on a particular model before purchase, too. Even if you ultimately plan on purchasing the phone online it’s a good idea to get a feel for it at a local retailer first.

iPhone killer(s)

Advisers who don’t mind waiting a bit for the next big thing should sit tight, according to Mr. Tedesco and Mr. Segan — as well as much of the rest of the media that follow mobile phone technology.

Rumor has it that Motorola, Google, and Verizon are teaming up to produce an iPhone killer. While it will be built for the Verizon network, chances are that it will resemble the just released, and well-received, Motorola CLIQ (see the next page for a link) which is available on the TMobile network. In terms of its general design, the new smart phone is expected to include both a large touch screen like the iPhone and a full-size QWERTY keyboard.

Even so, it is the Google Android version 2.0 operating system that is generating a lot of buzz.

“There is going to be a heck of a lot of Android news coming out over the next couple of months — if you are a financial services professional using your hand-held for work and can wait a few months to see how it all shakes out I would,” suggests Mr. Segan.

A future where all smart phones are smart enough?

Financial advisers can take some comfort in a development at Commonwealth that could bode well for the future of mobile applications in financial services.

In building a new mobile application for its Client 360 platform for advisers, Commonwealth has shifted gears and opted to create a web-based interface that will be compatible with a variety of mobile platforms.

“The application is going to look iPhone-esque, but will be browser agnostic,” said Mr. Tedesco, adding that “it will detect the browser you are using and render it properly no matter the device you are using.”

He said that while this might mean the application loads a little more slowly on some third-generation smart phones, particularly as the fourth-generation network starts to dominate, most users shouldn’t notice any difference in terms of speed.

In general what we can all hope for is that as both smart phones and the networks of carriers get faster, all application providers will find it more economical to do the same as Commonwealth and develop according to web standards instead of that of any mobile phone platform in particular.

First, a recap

There are three major players when it comes to smart phone operating systems right now and here, in a nutshell, is the quickest way to choose among them for financial advisers.

1) Go with BlackBerry if your firm already supports that platform.

2) Go with a Windows Mobile device if you, or your customer relationship management or sales software, depend on flawless syncing with Microsoft Exchange.

3) Feel free to go with the iPhone if you are an independent adviser beholden to no one for your back office IT support and are confident about AT&T’s network performance in your area.

For further reading and research:

Here’s a link for those of you who want to research what’s available for the BlackBerry in terms of financial services applications.
For those who wish to demystify the universe that is the Apple iPhone Appstore check out this story at Macro.org.