iPhones are ‘in,’ but advisers should consider all their options

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

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 factors 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, you have a few considerations. 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, in some cases already can 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.

The first question advisers have 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 requirement 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 from which to pick.

In addition, there are also several 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 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. 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, which is available on the T-Mobile 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.

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, Commonwealth 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 this might mean the application loads a little more slowly on some third-generation smart phones.

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 ac-cording to web standards instead of that of any mobile phone platform in particular.

WINDOWS 7

Microsoft Corp. last week officially unveiled its Windows 7 operating system to the masses.

Just in time for the operating system’s arrival, Microsoft launched its Windows 7 Compatibility Center, where advisers can check whether their office computer hardware and peripherals, as well as their software, are compatible with the operating system.

There were 22 pages’ worth of compatibility results representing some 212 programs in the Business & Home Office: Tax & Finance category alone. The results vary greatly, however, with some products deemed compatible, others still being evaluated.

For more information, see our recent INTech newsletter on the subject of Windows 7 at InvestmentNews.com/windows7.

E-mail Davis Janowski at [email protected].