The Future Of Wireless Banking (pdf)
Today’s banking and trading institutions realize they must move and move quickly to capitalize on new
business opportunities in wireless banking and trading. Resistance to the implementation of wireless
banking can lead to major losses at the business and market share levels.
Wireless service soon will be a necessity for the end-user. Although many technological barriers need to
be overcome, it is imperative to embrace the change.
Wireless banking and trading is only an extension of the product offerings for the financial institutions. It
is not an extension of web technology, as often perceived.
Online banking and online trading works from standard TCP/IP connection to...
The Future of Wireless Banking
Implementation of Wireless Banking and Financial Systems
Rod Ghani
Senior Consultant
IBM Global Services
03/15/2001
Introduction
Have you seen change yet?
Today’s banking and trading institutions realize they must move and move quickly to capitalize on new
business opportunities in wireless banking and trading. Resistance to the implementation of wireless
banking can lead to major losses at the business and market share levels.
Wireless service soon will be a necessity for the end-user. Although many technological barriers need to
be overcome, it is imperative to embrace the change.
Wireless banking and trading is only an extension of the product offerings for the financial institutions. It
is not an extension of web technology, as often perceived.
Online banking and online trading works from standard TCP/IP connection to the Internet using a PC,
while wireless applications present a much greater challenge.
Today, wireless banking lacks leadership in enforcing one standard. There are several network standards,
PDA standards, browsing standards, protocol standards…etc.
In the wireless world, airwaves are the only vehicle to send and receive data. Depending on the physical
location- inside or outside of a building, near or far from a tower, in a small town versus a metropolitan
area- quality is highly variable.
Did my order go through?
Non-repudiation is one of the most contesting issues in wireless banking and trading. The user needs to
have proof that the transaction has been executed and confirmed.
Wireless banking is revolutionizing the makeup of every financial and banking institution. It is radically
transforming the services, needs, and expectations of societies across continents, regardless of culture. In
the next twenty-four months and beyond, massive changes will occur in the way we interact with banks
and trading institutions regarding our business and personal finances.
The revolution is driven by the client (end-user) demanding to have the information available
conveniently anytime, anywhere. Immediate access is expected and required.
Change at the institutional level is not an easy task. Adaptability and flexibility are needed when dealing
with a variety of legacy systems, connectivity issues, protocol challenges, and a constant explosion on the
market of new devices. Large institutions are handicapped by their size and have to become aggressive to
keep up with the rapid times.
Today, B2B, B2C, B2G and B2E are recognized to be vertical online markets. Wireless is going to sub-
divide these markets, and new services will emerge targeting new user groups.
Data managers and system developers are expected to offer more effective and efficient methods in data
delivery, anytime, anywhere, using any device, regardless of platform, protocol, browser, service
provider, financial institution, etc.
The Future of Wireless Banking 2
Ron Ghani
A snap shot of the future
• The Gomez Research estimates that the number of people accessing personal account information
online will grow from approximately 8 million in 1998 to nearly 40 million people in 2003. Given the
numbers, banks and other financial providers must realize the opportunity inherent within Internet
and wireless capabilities.
• According to Jupiter Communications, approximately 100 million people in the U.S. will have
wireless non-PC web access by the year 2003, versus 155 million landline access from PCs. This
deduces that non-PC access will grow to 65% of the wireline PC access market within the next three
to four years.
• According to Forrester research, almost 120 million Europeans already use mobile phones,
exchanging more than two billion wireless text messages each month.
• By 2003, Forrester projects 219 million Europeans, or one-third of the population, will be on the
wireless bandwagon. Of the 50 European e-commerce executives interviewed by Forrester, 90
percent plan to launch sites that will be accessible by mobile phones
• Financial products and services provide an ideal setting for Internet delivery. M-Bank is well
positioned to serve this industry with companies such as Wells Fargo and Co. (NYSE:WFC), Bank of
America Corp. (NYSE:BAC), Providian Financial Corp. (NYSE:PVN), MBNA Corp (NYSE:KRB),
and Capital One Financial Corp. (NYSE:COF).
• A major bank reports that over 3 million online banking customers, representing more than 20% of its
checking account customer base that it continues to sign up approximately 130,000 new online
banking customers a month. Also, more than 750,000 online banking customers have signed up for
the bank's electronic billing and payment service, says the institution, and the total dollar value of
payments processed grew 36% last year. Over 3.1 million EBPP were made, totaling more than $1
billion.
• "It took us over 10 years to reach two million online banking customers and only nine months to add
one million more," says Jeanine Brown, Interactive Banking executive.
• GartnerGroup predicts that by 2004, 80 percent of new applications for consumer use will permit
access from mobile device clients (Source: GartnerGroup conference 1999).
• GartnerGroup research estimates there are more than 60 million employees worldwide working
outside the traditional office setting. The Gartner study also says that the number will grow to 108
million by 2002.
Users Interest in Phones with E-Mail
Current Potential
Users Users
Definitely Interested 8.3% 13%
Probably Interested 8.0% 13%
Maybe Interested 13.3% 23%
Probably Not Interested 25% 26%
Definitely Not Interested 45% 25%
Source: The Strategis Group
The Future of Wireless Banking 3
Ron Ghani
Little G History
1G is the first generation in mobile technology. Started in the late 1970s until the late 1980s.
2G began in the 1990s and it is still being used today, such as CDPD, CDMA, and GSM.
3G is the third-generation of wireless. It is expected to reach maturity between the years 2003 and 2005.
3G is expected to delver enhanced voice and data and even video. It is bandwidth can be as high as 2
Mbps and will operate at 2 GHz.
Will Wireless banking play a major role in new markets?
P2P (Person to Person), and P2A (Person to Anyone) will play a major role in the financial world. We
will witness an abundant in money transfers. A user can make a payment, have it automatically deducted
from the appropriate account, and deposited into the recipient account, with an email acknowledgement.
It’s about time
Time is the essence. Wireless banking and trading advantages are increasing by the day due to a rapid
advancement in technology, rapid growth in wireless coverage, cost reduction in networking, and
improvement in handheld devices, and bandwidth efficiency. Today, we can accomplish far more in
wireless services, where it was not cost justifiable a year ago. With that in mind, WSP (Wireless Service
Providers), corporations, and financial institutions can bank on the growth and take advantage of these
opportunities.
The winners in today’s wireless world are those who keep up with the change, cope with the challenges,
and utilize the products and services offered.
Financial institutions must drive to enhance the systems delivery to create layers of an open system
environment. Those who will use standard protocols will expand and thrive. Successful wireless
implementation is delivered when the end-user can interact with the data easily, securely, and independent
of a network operator or handheld device.
The Future of Wireless Banking 4
Ron Ghani
What are the components of a wireless system?
• Handheld devices
• Connectivity, Coverage, and Gateways
• Middleware processing engine
• Transcoding
• API connection
• Data System Backend system
TCP/IP to WEB server Registration
Wireless Application Interface
CDMA/CDPD
WEB Server
TCP/IP WebSphere Application
WebSphere Transcoding Pub
Gateway
ALLTEL
L Wireless
O Application Server
A
D Device
ID
TCP/IP B DB
A
Radio tower L request processor
Gateway A
Sprint N
C
GSM I
Local
Data
N Screen template Storag
XSL processor
G processor e
TCP/IP
Radio tower Gateway
ARDIS
Screen Templates
XSL Stylesheets
Radio tower
The Future of Wireless Banking 5
Ron Ghani
1- Handheld Devices
1. Thin Client devices, Palm, Workpad, Ipaq..
2. Two Way paging devices, like RIM
3. Smart-Phones, WAP phones
4. Others
5. Operating systems is a software program that manages the basic operations of a computer
system.
a. Windows CE:
This is a light version of windows, developed by Microsoft. It is Installed on many of the
PDA devices.
b. Palm OS:
It is developed by 3COM, proprietary platform. It is the most popular OS on the
handheld due to the large market share that the Palm Pilot owns today. It supports some
Java applications.
c. Linux: It is very promising for growth, open source base, Java friendly , very efficient,
and it can be installed on many PDA devices and even on smart-phones
d. EPOC:
Symbian consortium drove the development of this operating system mostly for smart-
phone devices used by Ericsson and Nokia. EPOC is one of the major operating systems
in this market.
Each one of these handheld devices will require certain ways of communicating; they require their own
Gateways to communicate to the application servers. Various sizes of screens create different data and
screen layouts. Different keyboards generate different navigational options and different keys. The
challenge is for the application server to sort out these devices, and send the data in the correct format to
each handheld device.
2- Connectivity, Coverage, and Gateways
In this section, we are going to explore the basic components of the wireless network architecture.
Starting from the end user, the handheld device can be any device that is used to access a local cell tower.
A cell tower is responsible for delivering local geographical coverage in a certain region. The coverage is
divided into hexagonal boundaries.
The cell tower then sends the data to a Base Station. The data is then transferred to a switching center.
The mobile switching center connects all Base Stations. The mobile network system will record, and
identify all of the users information by Home Location Register (HLR), if the user is in the geographical
network. If not, then the Visitor Location Register (VLR) will be tracking the call. This is when you pay
VLR
WEB APPLICATION SERVER
WebSphere
Content
Application Repository
A
engine
P
Rules and Logic
Logic I
HLR transform Engine
Alert ation and
additional
Services services
Data Mining and
ESN/MIN Business Intelligence
User Application User ID and
Device ID and
Security Info Click Stream
Gateways Capability
Server Logs Information Login History Data
Profile
The Future of Wireless Banking 6
Ron Ghani
the big bucks for roaming. Once the call is initiated, the device will send its identity via its electronic
Serial number (ESN) and Mobile Identity Number (MIN). This information is vital to have so the
gateway can authenticate the user. This is where the application server can prepare the data to send back
to the appropriate unit to be displayed.
A packet is a collection of data prepared in a specific way for transmission. There are two types of
transmissions, circuit switched and packet switched. Circuit Switched is a dedicated circuit for
communication between two dedicated devices. Its duration is for the entire call. Packet switching does
not require a dedicated line between the sender and the recipient. This method enables the data to be
divided into a number of packets and to be sent in different paths for its intended destination.
The connectivity will vary from one device to another, and from one service provider to another. The
most challenging issue about the wireless systems is coverage.
As end users sign up with WSP (Wireless Service Providers), they quickly come to realize that the
packages offered are not so perfect. Due to the limited coverage areas, it seems as if it’s always the right
plan at the wrong place.
Wireless service plans will vary in options as well as in cost. Some of the common protocols that the
WSP support are GSM, (not so big in the US yet), CDPD, CDMA, Ardis…etc. All of which are trying to
make it big. Wireless Service Providers are all jockeying for the position to be the global provider.
Existing
Service Networks / Application Server APIs System
Wireless Devices
Providers Protocols Web Sphere
WEB APPLICATION SERVER
Web Sphere
CDPD External Financial
Logic
CDPD CDMA transforma Component System
tion and
Gateway
additional s
GSM services System HTTP
Ardis Applicatio processing XML
n engine Update OFX
CDMA GPRS MQ
Gateway DB2
Mobite Notification
Device JAVA
Ardis x
ID
Services
Gateway C++
TDMA VB
User Alert Content Client Server
Profile
Services Feed
GSM
Gateway
3- Wireless Middleware (Application server engine)
Wireless application is the focal point of the wireless system. This is where the flow of data is controlled,
rules are set, and configuration files are executed. The application software should be an open system,
easy to connect to and talk to other systems. One of the most common methods of communicating with
backend systems is using XML API as the data delivery tool.
XML is used to extract and deliver data; XSL can perform the transformations, using the DTD files to
execute the functions agreed on in the integration and design stage. Different handheld devices will have
different screen templates. The Application server should be tracking the users sign-in by the device
being used, in order for data to be presented correctly. The screen templates can be XML documents
which conform to DTD files. The screen templates are used only to define the layouts of the screen.
They are device specific.
The Future of Wireless Banking 7
Ron Ghani
4- Trans-coding, is it magic?
Transforming is the process of
formatting the content (data) XML Content
according to the handheld device
request using XML, XSL style-sheets
and DTD files. This method will
enable the end-user to access data
universally regardless of the device
type.
XSL Processor
Once a request from a handheld WML/XSLT
Stylesheet HTML
device is initiated, the application
server will intercept the request to
identify the device type and capture
the content. Using several logical
processes, the application server
engine will process the data into an
XML document, which can be
communicated with the backend WML Browser
system via the API connection. The XML Content Processing
HTML Browser
result of the requested data will be
transformed (processed) using XSL style-sheets and then reformatted for the handheld device that made
the request initially. This process can become complex very quickly, depending on the number of the
handheld devices supported and the type of services offered by the financial institute. Therefore, products
like IBM’s WebSphere can be valuable tools to build a robust financial system in a short time. The
WebSphere application server will handle the data dynamically and adapt it to the handheld device. Also
it can run multiple applications and requests, and can be easily integrated to the backend system.
The WebSphere engine will select the correct screen template, format the data for the handheld device,
and deliver the data requested. XSL is used for data transformation definitions, where the API will
exchange the messages between the backend system and the application server. XSL and XSLT style
sheets are mainly used to manage the presentation of the data, whereas the XML is handling the data.
Managing Data:
The application server can use common device characteristics to display the data. Using these standards
can help in the development productivity.
User IDs and handheld device IDs are stored in the database at the application server level. The
application server will access the database once a login request is received. The middleware database is
used to prepare and format the data for the device requesting the login. The application server will also
compare the registered device ID to the user ID for additional security verification. The application
server communicates with the gateway server for the specific device that initiates the request. The
gateway will push the information to the handheld device according to the connectivity platforms like
CDPD,SMS, Mobitex, and CDMA.
The application server must accommodate for the different handheld platforms such as, thin client devices
(IP based device), two-way paging, SMS messaging, and smart phones. It must then deliver the
formatted data for that specific device data accordingly, end to end, in a reliable and secure manner.
The Future of Wireless Banking 8
Ron Ghani
WebSphere Application Server
TRANSCODER SERVLET
Requested Data Application
HTTP Servlet
Transcoder
Gateway
Radio tower
User
Authentication
PIX fire wall
Authorization
Check Device ID send to API call
End No Yes
and User Profile Existing XML,OFX
system
User
Device ID
Profile
Data
Transcoder
Data Formatted according to user's handheld device Source
XML/HTML/WML
Pushing or Pulling data?
Pull technology is when the handheld device initiates the communication using it’s gateway, requesting
data. Then data is pulled from the application server down to the handheld device.
Push technology is when the application server is in more control over the handheld device. The
application server will make decisions for the basic content and push data to the handheld device without
waiting for the client’s request.
In either, method authentication must take place first. The gateway transfers the handheld’s request to the
application server (middleware). The application server will then know the device type by it’s identifier.
The information will be sent to the backend system of the financial institute, using the API between the
application server and the backend system. The application server will receive the information from the
backend system to report it to the handheld unit. At this time, the data will be formatted into appropriate
screens for the device that requested the data. The data will be passed back to the wireless server provider
gateway, and then back to the handheld device.
Wireless application Server must be device and network independent:
The wireless application server must be able to work with any of the networks offered by the Wireless
Application Providers. The Application server should be:
• Easy to install, configure and add new services:
• The client application must be easy to install, customize, and add new handheld devices.
• Easy to Integrate with other servers and Back-End systems:
• Integration is one of the key steps for a successful implementation of the wireless project. The
API of the existing financial institute’s system must be reliable, and secure.
Open System:
The application server also must be an open system, using standard protocol to make it easier to add or
change services, devices, and apply any customizations needed.
The Future of Wireless Banking 9
Ron Ghani
What about Screen Scrapping?
Screen scrapping is one method I would not recommend to use as a final solution. It’s not a stable
solution, due to maintenance required to keep updating the macro reader when fields are changed in the
source document (Website). This method can leave more room for error. Screen scrapping is quick to
implement, which can be a good tool for data presentation in the proof of concept stage.
The Wireless Application Server is not an Internet server nor an extension to the Internet:
The explosion of the wireless application industry in the last year or so has resulted in a common
misconception. That is the wireless world is simply an extension to the Internet. While some wireless-
enabling companies do use web-scraping (screen-scraping), a technique that captures screen content and
transfers it to a wireless device. This technique tends to produce poor performance and unreliable wireless
service. It’s also more manual and maintenance intensive.
The most effective way to build a wireless application system is to connect into the back-end system,
regardless of type. It could be a mainframe, client server, or a even Web-based system, using a direct
connection via API.
WEB APPLICATION SERVER
Web Sphere
Logic
transformati
External
on and Components Financial
Gateway
additional API Existing
services System system
XML
Application processing OFX
engine Update MQ
Notification
Device
ID Services
User Alert
Profile Content Feed
Services
News, Stock markert
The Future of Wireless Banking 10
Ron Ghani
Security and Wireless Banking and Trading
Security is probably one of the most important issues in wireless banking, if not the most important.
A recent study on wireless banking security uncovered the main challenge facing both wireless banking
innovators and online banking establishments; nearly 85 percent of respondents are worried about online
security transactions, including credit card purchases. More than 90 percent expressed concern about
revealing personal information online, such as social security numbers. Over 90 percent of proprietary
cryptography has been broken. Cell phone systems have been hacked.
Wireless banking and trading is more vulnerable to attacks by hackers than many other wireless services.
When data is flowing across a vulnerable environment, many of the available operating systems for
phones and handheld devices offer little or no security. Most security violations occur within the
institution or the service providers.
Customizing wireless security is extremely difficult, especially when computing power on the handheld
devices is very limited.
Service Networks /
Wireless Devices Providers Protocols
Application Provider
CDPD
CDMA
GSM
Ardis Financial Facility
Application GPRS
Server
Mobite
x
TDMA
Financial
System
Dual secure key method
Authentication
Double key secure authentication is one of the protection methods used to verify access across different
systems. Double key secure is where the user will authenticate two systems, the application server (at the
Hosting service provider) and the financial institute. The transaction will be granted access, only when
both locations agree.
Secure network architecture is achieved when all interaction points and data paths traveled, are
implemented by using double secure keys.
It’s proven this method of security can drastically reduce violations and system hacking internally and
externally, because all three parties must agree. One of the more common securities used is PKI (Public
Key Infrastructure), an encryption used for PDAs and Smart-phones security. PKI consists of two keys, a
public key and a private key, used to authenticate the user and encrypt the data.
In addition, the financial institute should utilize the system to monitor access logs and flag questionable
connections that can be done on the application server.
Encryption is a trade off between speed and security. A good rule of thumb is to encrypt on a 32-bit CPU
at the rate of ten CPU clock cycles per byte. Look for the most compact software. It should run under
5,000 bytes of memory. Encryption can vary form one device to another, depending on the platform and
the operating system. For additional protection, authentication can be implemented through user ID and
password.
The Future of Wireless Banking 11
Ron Ghani
The Challenge
Wireless banking implementation is demanding. There are constantly changing standards for APIs,
gateways, security methods, screens, operating systems, and browsers. There are also variable computing
powers on the handheld devices and different bandwidth requirements.
Wireless banking can be risky, lengthy, and complicated to develop. APIs (interfaces) must be designed
to connect to the existing backend system. The application server must be able to accommodate to all
protocols and all devices. You never know which device the end user is going to use.
The application server must be able to communicate with all gateways, like WAP, GSM, two way paging,
etc…
A product like Web Sphere can reduce development time drastically. Transcoding tested templates can
make the developer’s life much easier. The end result is a robust solution. Consulting companies
promise a lot, but only few can deliver.
Since wireless banking is still at it’s evolutionary stage, we must keep up with new technological
advances, products, and development tools to help ease the transition.
The wireless network must be device and network independent. Most handheld devices have their own
standards to deliver data across the data channels. The end user should be able to easily customize
screens, alerts, notifications, and messaging request services. The system should be able to notify users
regardless of the device type. Scalability is a major issue. Selecting the right platform to run the
application server will dictate the available tools to work with. The wireless banking system must be an
open system that can easily and reliably be integrated with new gateways to the backend system. This is a
challenge not many banking institutions should undertake on their own.
The next best thing is out sourcing the development of the project, the implementation, and the hosting.
Using a third party to administer and host the system is an option I would choose.
Selecting the right application vendor:
The vendor must have developed and installed a wireless financial system and must have a wide range of
experience. Look for the following:
1. A trusted name and the longevity of the vendor is important
2. The vendor must have tested and used the product in a field specifically related to your field. For
example, Wireless Trading is more demanding than Wireless banking. Wireless trading is time
sensitive. Stocks, options, mutual funds, and bonds are all different services requiring different
tools to process orders. The system must be able to deliver the data flawlessly and quickly to any
handheld device. Wireless trading requires research capabilities. Wireless trading is much more
active delivering user alerts, such as watch lists, quotes, charts, reports, notifications, summaries,
and portfolio statuses. The wireless trading could be using external systems to gather data. The
point is to be specific when dealing with application vendors; not all financial services are the
same.
3. The testing and quality assurance stage must take place as early as possible to certify the systems.
The application or applications must integrate fully to the backend system or systems, regardless
of device type or platform. Management of all users definitions, events, requests, updates,
changes, and requirements must be tested thoroughly.
4. Application servers must include monitoring tools and protocol management of all requests.
5. A turn key solution is an end-to-end solution. It goes from the backend system, where the data
source resides, to the API connection, to the application server, to the WSP gateways, and then to
the handheld units.
The Future of Wireless Banking 12
Ron Ghani
6. The vendor must have widely available resources and experienced programmers, systems
architects and project managers. Additional manpower must be available immediately if needed.
7. References and physical site visits are key to comprehend the consulting, development, and
hosting environment. The consulting company will be an extension of your business. This is the
life link between you (your system) and your customers using the services.
8. Backup and catastrophe planning must be in place.
9. The wireless application system must be network and device independent. The application
should be fully configurable with customizable screens, using standard API’s. The wireless
application server must be an open, modular architecture, to provide the user with the maximum
flexibility and extensibility to make the development and deployment easier.
10. Development tools to enable you to make changes, add services, or deploy applications are
crucial.
11. Products like IBM Web Sphere are End-to-End Solution for the wireless banking and trading
enterprise. The IBM Web Sphere solution and Web Sphere Everyplace Suite are highly scalable
server software, and have development tools for connecting millions of wireless devices to the
Web. Java is capable to transcode, encapsulate the application logic, access XML documents,
XSLT style sheets, and define the presentation. The Web Sphere architecture will help the
programmer to focus on providing high quality. Web Sphere can handle the presentation and data
management without getting involved in dynamic content generation. Views and screens can be
developed for different devices easily and quickly using the same application logic.
The road to a successful implementation:
Remember, wireless users will not be able to multitask using the handheld devices; therefore, easier navigation will
play a major role in the success of the project. It’s crucial to test all users’ functionality thoroughly, no matter how
tight the schedule is for implementation. Depending on the type of network to be implemented, number of markup
languages, and handheld devices to be supported. Testing can be cumbersome and complex. It is always a good
idea to use multiple software development tools to test for the real world users. The financial institute should make
use of the following steps for implementation and testing:
1. Documentation, Documentation, Documentation!! (in this order). Document all rules,
procedures, and specifications.
2. Setup the application network environment as early as possible. Start with high-level conceptual
and visual design.
3. Run traffic studies on bandwidth required to communicate between the backend system and the
middleware system (application server), the gateways.
4. List all users functions and requirements.
5. Perform user analysis.
6. Perform technical assessment.
7. Hold users group meetings.
8. List business requirements.
9. Define functional requirements.
10. Definition of performance requirements hardware and software.
11. Use a standard API like MQ, or OFX (common in the banks industry), or develop XML API,
which is becoming more popular.
12. Design business performance and process requirements.
13. Develop delivery plan.
14. Build a proof of concept to test all systems functions and requirements. Test APIs and
architectural designs of the applications. Integrate with the data source (existing system) directly.
15. Start with a pilot (limited users).
16. Fix bugs, and fine tune systems performance.
17. Implement the full-scale rollout.
The Future of Wireless Banking 13
Ron Ghani
Conclusion
We must react to the new world economy quickly and offer what the clients are looking for!!. The future
of wireless banking is massive and aggressive in terms of requirements, demands, and support. The good
news is, it’s great for financial business, but we must be cautious in implementation and execution to
deliver a reliable service.
Wireless media is challenging. Many variables are not under
control yet. Coverage is a big hindrance. Legacy systems with
different topologies and different platforms make things even
tougher. There will be more streamline markets demanding
new ways of conducting transactions.
The future of wireless banking and trading has promising
magnitudes of growth. Jupiter Research expects 18 million
more people in the United States will become wireless
subscribers in 2001, increasing the total number to 128 million.
Moreover, the percentage of subscribers with Internet-ready
wireless handsets will quadruple during this year.
Despite millions of new users, the wireless market can expect
some real challenges in the near future. "While penetration of
wireless data services will gain momentum in 2001, a lack of
substantial new technology deployments in the United States
will stifle true innovation. Location-based services, high-speed
networks, and highly sophisticated handsets will remain elusive
in 2001."
Wireless banking is sensitive to security, and is essential to
finding the right balance between speed and encryption.
Accuracy, consistent availability, and reliability of the services
are key to a successful implementation and survivability of the financial institute.
Geographical coverage is imperative to successful implementation. It must be clearly defined and
understood. The confirmation of transactions is key to show the level of commitment and accuracy to
your customers.
Wireless banking is greatly dependant on the efficiency of the bandwidth. The more efficient the
bandwidth, the faster the content is downloaded. End-users requirements are driving a demand for faster
transmission and higher bandwidth capacity.
In order to offer an enterprise wireless solution, major consortiums of the industry must break all political
barriers and agree to a global format of communication. The consortiums must arrive at solution that can
access all platforms across all networks regardless of device type, much like the Internet.
The financial institutions are between a rock and a hard place. They would like to extend their services to
the wireless world, but they lack the resources and the expertise to implement and deliver to their
customers in a timely manner.
Therefore, out-sourcing can be a vital option for the following reasons:
1. The financial institute can focus on their core business.
2. Extend the product offering in a timely manner, and get to the wireless market place sooner.
3. Outsourcing will help predict cost better, and forecast more accurate budgeting.
4. Use of the latest in technology.
The Future of Wireless Banking 14
Ron Ghani
Benefits of WebSphere middleware application server:
• The financial institute can extend the reach of its product to new markets in a much shorter time.
• Communicate with handheld devices seamlessly to access data and applications.
• Enhance data transfer using the load balancing function, which can detect bandwidth capability
and optimized data streams.
• Reliable systems processing, and commanding encryption.
• Sophisticated monitoring tools.
• Reduces development time greatly.
• Scalable open architecture using XML and XSL standards.
• Integrates easily to backend systems, such as Mainframes and Client servers.
• Unmatched product support.
• End to end solution.
Wireless banking and trading must be a virtual and global solution. Competitive forces will shape the
wireless banking industry and help deliver the offerings desired to the end users.
Wireless banking must reach a global standard before it can be unleashed to it’s greatest potential.
The Future of Wireless Banking 15
Ron Ghani
API Application Programming Interface
CC/PP Composite Capability/ Preferences Profiles
CDMA Code Division Multiple Access
CGI Common Gateway Interface
CPI Capability and Preference Information
DCS Digital Communications System
DTMF Dual Tone Multi-Frequency
FDD Frequency Division Duplex
GPRS Global System for Mobile Communications
GSM Global System for Mobile Communication
HTML Hyper- Text Mark-up Language
HTTP Hyper-Text Transport Protocol
JDBC Java Database Connectivity
JSP Java Server Pages
PCS Personal Communications System
PDA Personal Digital Assistant
PDC Personal Digital Cellular
PeMS Personalized e-Messaging Server
PICS Protocol Implementation Conformance Statement
PKI Public Key Infrastructure
RDF Resource Description Framework
SMS Short Message Service
SSL Secure Sockets Layer
TDD Time Division Duplex
TLS Transport Layer Security
UDP User Datagram Protocol
URI Uniform Resource Identifier
URL Uniform Resource Locator
WAE Wireless Application Environment
WAP Wireless Application Protocol
WBXML WAP Binary XML
WCMP Wireless Control Message Protocol Wireless
WML Wireless Markup Language
WSP Wireless Session Protocol
WTA Wireless Telephony Application
WTAI Wireless Telephony Applications Interface
WTLS Wireless Transport Layer Security
XHTML Extensible HyperText Markup Language
XML Extensible Markup Language
XSLT Extensible Stylesheet Language Transformation
WTA Wireless Telephony Application
WTAI Wireless Telephony Applications Interface
WTLS Wireless Transport Layer Security
The Future of Wireless Banking 16
Ron Ghani
