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M-commerce in Leasing

Published in Leasing Life - August 2001

Speed is of the essence in the equipment finance marketplace. The competitive edge can often be the turnaround time in response to a credit application. Now that application can be received via wireless technology.

Mobile or ‘M’ commerce is another e-commerce channel which financial institutions can use to deliver products and services. It is emerging now because the Internet and cellular networks are merging and there is an agreed technology standard - WAP.

WAP (Wireless Application Protocol ) is the industry standard for enabling wireless devices to support e-business applications. Its purpose is to enable easy, fast delivery of relevant information and services to mobile users.

By providing another communication channel, lessors can strengthen their relationships with manufacturers, vendors and dealers. Accessibility is a key to success, and a WAP interface provides access to the finance system with freedom, speed and security – a competitive edge for any lessor.

The purpose of the interface is to extend core system access methods for dealers and financial advisors. This e-commerce business-to-business application utilises mobile wireless internet devices for communication between a financial organisation and its customers and partners. It can provide dealers and sales representatives with secure and timely access to automated on-line service offerings and seamless credit adjudication. Mobile phones, Palm tops and Personal Digital Assistants (PDAS) for example, can now all be connected to the lessor’s lease administration system via WAP technology.

How?

By linking to a web site, the new application functions as a front-end interface to the back-end system which manages manufacturer and dealer programs. The user leverages existing customer exposure and payment history and is not tied to PC access for submitting an application or obtaining credit approval.

Capture screens can be set up to include all relevant business rules, formatting validations and edit checks as defined by the financial institution. User Name and Password are authenticated by the user security administration database. Data is captured and saved directly into the host system. The display to the user can even include graphic images, such as a logo.

Is ‘M’ commerce important ?
Industry forecasts predict hundreds of millions of users worldwide in a few years. In Europe alone, it is expected that approximately 140 million people will have “Mobile Terminal Access” to the Internet by 2003. By comparison, only 20 million will have PC based access.

Accessibility is the major feature that ‘m’ commerce provides as a benefit to the financial services sector. It provides unparalleled freedom of location in the input of credit applications - the credit adjudication, proposal handling and administration are still dependent on sound judgement and reliable back - end systems.

Tony Langford
Business Manager
APAK Group plc
Published in Leasing Life - August 2001