Customer Profitability and Customer Relationship Management at RBC Financial Group

By :I R F A N

Roos Indra Djaja

RBC Financial Group Headquartered in Toronto, Canada Considered one of Canada’s few full-service, national

and international financial establishments RBC Financial Group services; 5 main areas of practice - Personal and commercial retail banking (RBC Royal

Bank) - Insurance (RBC Insurance) - Wealth management (RBC Investments) - Corporate and investment banking (RBC Capital

Markets) - Transaction processing (RBC Global Services)

RBC Financial Group Considered Canada’s largest bank when measured in terms of

assets and market capitalization• $270 Billion in assets• 23 Million retail accounts• 700 Products• 58,000 Employees• 10 Million personal, commercial, corporate, and public sector• customers served in North America and much of the world

RBC Royal Bank (personal and commercial retail banking) comprised of 1,300 branches, 4,800 ABM’s, 87,250 proprietary POS terminals, 900+ mobile sales staff, 1.4 million online banking customers and 2 million telephone banking customers with 300 offices in 30 countries

RBC Financial Group

The personal banking department covered consumers and small business banking and loan, while larger companies earning $5 million to $25 million were covered by the commercial division

RBC Royal Bank also provided credit card services, Visa credit and debit cards provided; via RBC Centura and RBC Prism

History of RBC Financial Group Royal Bank began its expansion in 1946, with

the philosophy in mind; “all things to all people” Sought to expand both nationally and

internationally, while developing new products and services in the process

Due to changing market condition in the 1960’s and 1970’s RBC sought to supplemented their expansion by utilizing emerging ABM technologies and a decentralization strategy 1968 – 25 ABM’s were utilized in domestic operations

History of RBC Financial Group The 1980’s changes to “Bank Act of 1871”

1980 – Allowed foreign competitors limited access in the Canadian market1986 and 1987 – Deregulation of financial industry now allowed banks to participate in banking, trusts, securities and insurance

Royal Bank’s response to these changes-Main strategy was to purchase companies to assist them in becoming a fully integrated financial service institution. 1989 Royal seized 50% of the mutual fund market as they entered into the securities market. 1990 they acquired 70% of Marcil Trust Company, this helped them enter the trust industry. 1992 First to offer group retirement products to customers.