Mobile News

Wireless Application Protocol (WAP) is an open, global standard enabling mobile devices to connect to the internet and is compatible with the majority of bearer networks (eg CDMA, GSM and next-generation network standards). Enabling transactional capabilities, WAP is superseding earlier banking applications based on SMS, the two-way messaging protocol that catered for basic information-led mobile banking. WAP allows the use of Wireless Mark-up Language (WML), a stripped down version of HTML, to build platform-independent wireless applications. In a typical WAP solution, data packets from a wireless device pass along a wireless network in WML format to WAP server/gateway. The essential data is then reconfigured and passed to a standard HTML-capable web server. This works conversely if HTML packets must pass through a WAP server/gateway to reach a wireless device. A WAP solution typically comes in two parts:

* A WAP server which distributes content and applications

* A WAP gateway which controls access.

The siting of these depends upon the business model adopted by banks and operators. Current WAP banking solutions employ a closed model whereby the WAP server and gateway reside on the network operator’s site. In so doing, banks relinquish control of content and access to mobile operators. Moreover the closed model carries with it a security flaw caused by the `clear text’ at the gateway which subverts end-to-end security. Although an open model solution with gateway/server situation in the bank’s protected environment (secure intranet) would counter such a threat, the closed model allows speed to market without the burden of installation costs for banks. In addition, operators are better positioned to offer portals and thus a more mature service while an in-house bank gateway may complicate transferal to other WAP gateways, disrupting the internet experience for the mobile banker.

The arrival of WAP supposedly sounded the death knell for STK services, but WAP is still evolving and, as such, has not immediately replaced STK applications. The migration towards enhanced mobile banking functionality available on WAP will entail a co-existence of STK and WAP. The fixed internet model confirms this mutuality–both internet- and PC-based applications are used. Undoubtedly WAP offers easier navigation and information update, yet STK conforms better to the dual-slot payment model and would provide better PIN management. The Smart Card Expert Group within the WAP Forum focuses on synergies between the two. An example of an industry partnership which aims to capitalise on the STK/ WAP combination is that between smartcard manufacturer ORGA and Jinny Software announced in March 2000–ORGA provides its SIM know-how while Jinny brings its expertise in the areas of WAP gateway design and integration (WML content).

In terms of multi-channel banking, WAP presents a problem insofar as WML code must be written from scratch since HTML-WML conversion is very difficult (although IBM’s WebSphere Transcoding Publisher can perform such a task). Greater consonance between fixed and mobile internet channels, thus aiding the multi-channel distribution mix, will result from the adoption of Extensible Mark-up Language (XML) to provide infrastructure solutions. XML is a standard web mark-up language that affords a high degree of flexibility in accessing and presenting data while optimising the features and functionality of different devices. The improved content management it enables means that it has the potential to become the lingua franca of web-based (mobile and fixed) financial services, which will aid seamless multi-channel delivery. Instead of WML being written from scratch, only 10% of data need be changed from HTML. In November 2000, software developer MobileQ announced its selection by Canadian Imperial Bank of Commerce as a key technology partner in the development of a wireless banking solution based on XMLEdge. The capacity to convert content via XML has driven the development of the Tamino/WAP gateway by Vodafone, D2, Nokia and Software AG which provides a generic XML-based content management solution for any WAP handset.

Service providers, banks in particular, are likely to depend on current SIM-based solutions due to the absence of reliable WAP security. Merita NordBanken uses a combined solution, with a WAP-enabled phone and SIM-based service.