Wireless Internet access: The next standard for speed and efficiency

ESTIMATES CALL FOR THE NUMBER OF Internet-accessible wireless devices worldwide to reach 1.25 billion by 2003, up from present figures of between 500 million and 750 million. What does this mean to the mortgage banking industry? It sets a new standard for speed and efficiency to meet the needs of

Though still considered an emerging technology, Internet-enabled mobile devices-cellular phones and hand-held personal digital assistants-are rapidly growing into the primary voice and data communication methods of choice. Hardware capacity and voice quality constantly improve; wireless application protocol (WAP), used to convert PC-based Internet sites and capabilities so they are readable on a wireless device, is being sharply honed to meet reliability standards.

At first glance, wireless devices may seem like just the newest fad-an adult version of this year's "must-have" Christmas toy. Nothing could be further from the truth. Wireless technology is growing faster than any of its communication technology predecessors. And it offers significant advantages over PCs, including mobility, lower hardware costs and lower learning curves. For mortgage bankers, this technology provides an additional retail distribution channel, a value-added service with which to earn business from participants in the home-buying and financing industries and a powerful productivity tool within our organizations.

Retail distribution channel

In a highly competitive industry, mortgage professionals cannot afford to ignore any and all retail distribution channels. Today's empowered consumers need and demand access on their own terms. Those terms increasingly include wireless devices.

Current research by organizations such as DataQuest and Meridien Research indicates ownership of wireless Internet devices is growing rapidly. The U.S. mobile phone penetration rate is currently estimated to be approximately ao percent, with forecasters predicting 6o percent penetration by 2003. In parts of Europe and Japan, mobile device penetration rates are already in excess of 50 percent, with customers embracing mobile banking and other financial services.

This information technology provides access to the resources of the Internet, any place, at any time. As an information channel, wireless represents tremendous business potential. In addition to the convenience of mobility, phones and hand-held devices offer ease of use. Some experts have gone so far as to predict that within five years, more individuals will access the Internet with mobile devices than with PCs.

The winners in our industry will be those who move now to provide wireless applications to this segment of the consumer market. Countrywide's experience illustrates just a few of the highly effective wireless applications available. Using a minimalist, menu-driven screen, our applications offer a highly efficient, easy-to-understand means of communication. Mobile device users can currently access live interest rates, an affordability calculator, a branch office locator and status of loans. Moving forward, the organization will soon offer its proprietary automated property valuation system, Value Finder(SM), via WAP, with access to insurance services soon to follow.

Business partner tools

We may well be members of a brave new wireless world, but for mortgage originators, many customers still come recommended by real estate professionals, builders' on-site sales personnel and other lead sources. The originator who can provide valuable, convenient information over the phone will win the business-and win big.

In a seller's market, mobile Internet access could soon enable an agent to dial up a lender during an open house or home showing, help a client apply for a loan online and receive preapproval. All this could take place in a matter of minutes. The speed and convenience this brings to the home-purchase process is enormous. In effect, the lender is offering business partners the advantages of a palm-sized branch office, open around the clock.

Wholesale and correspondent lending will also benefit from the "anyplace, anytime" mobile business model, as large industry players and technology leaders such as Countrywide roll out wireless applications specific to the needs of brokers and correspondent sellers.

Business management

Quality and speed of communication are the cornerstones of productivity and effective management. In today's organization, managers are on the run-attending meetings, juggling projects, spending less and less time behind a desk.

Mobile devices and wireless communication technology is rapidly becoming the primary means with which to stay abreast of multiple tasks and responsibilities. Whether in the form of voicemail, e-mail or scheduling calendars, mobile phone capabilities provide very compelling evidence for productivity increases.

On a personal note, when on the road I am a heavy user of an Internet-enabled phone. In an organization as complex as Countrywide, anytime, anyplace access to e-mail is imperative. Our system has enough capacity to support our internal phone book, e-mail, a calendar and even production volume reports.

An additional benefit of wireless technology is faster transmission times. Depending on computer network size, structure and architecture, most electronic messages are not transmitted instantaneously. When time is of the essence, minutes matter.

For the technophobes who may still be among us, information security and privacy concerns have been well answered by wireless technologies. The telecommunication firms carrying signals use encryption that interfaces with a business' own secure socket servers, most of which have several levels of encryption, too.

The wireless world is here-and here to stay. Mortgage industry leaders must embrace this emerging technology. Retail banking and investment brokerage providers have begun to offer mobile device Internet access to customers and business partners. Providing mortgage and other personal finance products and resources anytime, anyplace, brings lenders a step closer to offering a true one-stop shopping experience. Ignore this next standard of speed and efficiency at your own risk.