Dangelo, Mark
(Mark Dangelo is managing principal and creator of Innovative Relevance® (www.Innovative-Relevance.com), including books, industry reports and articles. He is a known as a strategic management consultant, outsourcing advisor and analytics specialist with extensive process, technology and financial results. He is a frequent contributor to MBA NewsLink. He can be reached at m_dangelo@innovative-relevance.com or at 440/725-9402.)

It was just six years ago the standards, domain names and most of the network infrastructures were dominated by American firms. The debate over net neutrality was a frequent topic of media attention. However, as information quickly grew and offshore revenues expanded (along with international investors), the influence of a single nation to dictate a common vision began to wane. 

Today, with rapid expansion of cloud computing and their co-dependent networks, there are now private clouds being developed each with specific capabilities and business intent. Examples of this includes interconnected private-label trading networks, hardened FSI mobile computing for smart phones and even architectures of mortgage clouds uniquely designed for consumers or investors. 

As specialization is being deployed across hardware, software and networks, we are also witnessing challenges at a country level, which threatens to fragment the idea of the Internet into very specific country solutions. The recent challenges and banning of Blackberry communications is likely just the beginning of the potential objections forthcoming--they were a red herring for greater segregation. 

Even countries that rely on the Internet for national commerce (e.g., India) risk having their “agency” demands cascading into a fragmentation of the very innovation that allowed them to flourish. Underneath the surface of the Google and Verizon net neutrality proposal recently introduced, we can clearly see the historic divisions rising up to create multiple nets--each with specialization, costs and all distinguishing fixed from mobile. The Federal Communications Commission’s future directions will influence the U.S., but it speaks for a smaller and smaller slice of the mobile world.

In general, the ability of one network or Internet to fit the growing individualization of service and product offerings has likely reached its zenith (existing only in a “super highway” form). Mobile will be segmented from fixed line and treated differently--it already is. Bespoke networks of networks over the next four to six years will develop into the new norm as mobile devices become more powerful and increasingly secure--each tailored to a consumer profile, channel or behavioral type. 

Smart Devices
Introduced early last decade, the term “smart-phone” has increasingly become a misnomer. For all practical purposes, it refers to a growing class of sophisticated mobile computers connected via robust 3G and 4G public networks that just so happen to have their origins in voice. 

For those vendors in the mortgage markets, these devices are forcing a rethinking of how and where to engage the consumer. Now with hundreds of thousands of apps written for smart devices available, the certification of conformance to operate on a secure, private cloud will force a reexamination of device level protections. 

Examples of this will include unique carve outs of memory protected by chipsets specifically dedicated to financial operations using ideas ported from “dark-op” efforts. Furthermore, 2011 promises introduction of several of these solutions embedded within commercially available software and hardware--PC and laptop chipsets starting in 2012. Look for these solutions in FSI first.

With 20 percent of the U.S. population possessing smart devices, the ability to reach and retain these homeowners represents a chance to uniquely serve an educated and loyal consumer base. When applied to reaching consumers about their loans or accounts, the SMC will be one of the items least likely to be parted with giving a unique opportunity to engage those needing assistance--especially with built in GPS. 

SMC applications will not be simply ported--but designed exclusively for these operating environments including, LOSs’, customer service, fraud solutions, validation (authentication, identification, and non-repudiation) and compliance. 

Privacy, Security and Countermeasures
The poster firm for privacy concerns has globally become Google--as information contained within their vast databases raises alarms among opponents and especially from country regulators.

There are those of Orwellian convictions who believe Google has assembled digital dossiers on every person’s on-line actions--across the entire world spanning 2.5 billion individuals. You can image the horror for homeowners or those seeking to repair credit, when it is learned they might have frequented sites about bankruptcy, defaulting on an upside-down loan or even how to do a short-sale.

While many will rightly point out that secure mobile communications has to meet standards of performance and non-repudiation, the gaps of security (between a landline and wireless connection) are being closed. In fact, a great deal of security innovations are now being targeted singularly towards the mobile consumer and mobile banking/FSI in particular.

Firms such as Tigers Lair are introducing products that deal not only with counter measure capabilities (even when a device is powered off rendering the unit cleansed), but also security across the entire spectrum of mobile operations. Deploying a holistic approach, these next generation firms may be providing the mobile foundation not just for common retail banking, but for mobile BPO, compliance and assurance and even as the primary system of record. 

* * * * * * *
Mobility has become part of the social mores for consumers. As the consumer base increasingly values their SMCs (just try and take an iPhone away from their user), the highly customizable devices provide the identity for many under the age of 45. After a decade of experimentation, the building blocks are coming into place (e.g., see the latest announcements from Alcatel-Lucent).

The result may be that to effectively select and manage viable homeowners in a post-crisis world, mobile holds one of the foundation stones needed for profitability and risk management. However, what is certain is that it won’t be as many are envisioning--a singular homogeneous device or network that provides everything. 

Finally, with states looking to fill budget gaps, look for new taxes and surcharges on mobile and select applications. I wonder, what new regulations will be proposed and how will they all be managed? That is a battle for a future Congress.

(Editor’s note: the Mortgage Bankers Association has not taken a position on “net neutrality” but is following the issue.)

(The views expressed in this article do not necessarily reflect the views or policies of the Mortgage Bankers Association, nor does publication connote endorsement of specific products or services. MBA NewsLink welcomes your contributions; inquiries/articles should be sent to Mike Sorohan, editor, at msorohan@mortgagebankers.org).