BUS 1038 - Case Study 1 PDF

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A group assignment about the company we chose - RBC, and our explanation of what we have learnt about their ways of doing business...

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Running head: ROYAL BANK OF CANADA

Royal Bank of Canada BUS 1038 George Brown College Prepared for Professor Peter Sirois October 17, 2019

ROYAL BANK OF CANADA

Contents Company Background.............................................................................................................................4 Vision and Mission Statement(s) of the company...................................................................................4 Vision...................................................................................................................................................4 Values..................................................................................................................................................4 Why we chose RBC.................................................................................................................................5 Trends and Challenges impacting the Company....................................................................................5 Technological trends:...........................................................................................................................5 

Social media...............................................................................................................................5

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Online presences.......................................................................................................................6

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Artificial intelligence....................................................................................................................6

Economic trends...............................................................................................................................6 Global and other general trends..............................................................................................................7 

Labour mobility..............................................................................................................................7

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Unemployment levels....................................................................................................................7

Canadian wealth management section...............................................................................................8 U.S wealth management section.........................................................................................................8 Youth....................................................................................................................................................8 RBC Future Launch.............................................................................................................................8

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ROYAL BANK OF CANADA RBC Youth Mental Well-being Project:................................................................................................9 Artists...................................................................................................................................................9 Environment.........................................................................................................................................9 Conclusion.............................................................................................................................................10 Bibliography............................................................................................................................................11

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ROYAL BANK OF CANADA Company Background Operating globally under the RBC brand, Royal Bank of Canada, founded in 1864, is the country's largest bank and organization record financial institution in the world, concentrating on market capitalization and its corporate headquarters located in Toronto, Ontario. RBC owns a differentiated financial services company with profits in personal and commercial banking, with banking operations in 36 countries around the world. Carrying several products and/or services are RBC Wealth Management, containing investment products and services for retail investors; RBC Capital Markets for international investment banking services; RBC insurance for individual and group clients; and Investor and Treasury Services, providing custody and fund management services to international clients. Royal Bank is a public company trading on the Toronto Stock Exchange, the New York Stock Exchange and the SIX Swiss Exchange below the symbol RY. In 2018, RBC had $ 42.6 billion in revenue and $ 12.4 billion in profit and had $ 1.3 trillion in assets. Royal Bank employs over 84,000 individuals supplying 16 million clients [ CITATION Bon19 \l 1033 ]. Vision and Mission Statement(s) of the company RBC is the bank that sets its competitors apart by guiding, uniting, and inspiring customers and the community to influence and do what is right. These values set the tone of the company's culture, unifying across different regions and businesses, and this distinction stands out as one of the most trusted investment banks in the world and becoming. Purpose Facilitating clients prosper and communities grow Vision, to be between the world’s most consistent and successful financial institutions.

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ROYAL BANK OF CANADA Values, a solid values-driven culture has constantly part of the structure of RBC. Putting customers first and continually improve to help them. Creating collaboration within the organization's values opens communication, mutual respect, and personal responsibility for results. Besides, take responsibility by investing in professionals, expecting them to grow and share your career management, diversifying and including everyone with different skills, experiences, and approaches to create custom solution success. Finally, integrity is respectful, transparent and fair throughout the relationship, bringing clients closer to understanding their interests. This is one of the key points in making an RBC a bank extremely different from others for its values, mission, and purpose [CITATION Placeholder1 \l 1033 ]. Why we chose RBC Royal Bank of Canada derives our attention as it is Canada's largest bank by market capitalization and multinational in over 35 countries. Few members of our group are part of this team and really love the bank, for being flexible with international students and were excited by the bank's sincerity in the direction of customers. The great technological and proportional platform, solving most of our problems without leaving home, through links, website, and app, it is a wonderful tool that provides for the customers. With it, we be able to explore advanced options such as finding the right account, saving and investing, providing bank details, etc. The bank sustains us comforted by the great opportunity for services, and products, and professional organization where they are always available for guidance and help, they customers.

Trends and Challenges impacting the Company 1) Technological trends: 5

ROYAL BANK OF CANADA Technology has an important role in banking services, it helps banks improve engagement with their customers, get them adapted with the service models and enhance productivity. 

Social media: According to [ CITATION Arm18 \l 4105 ] – chief executive of RBC, the evolution

of digital technology and web-based media is pushing banks to the sidelines. By using social network, users give a lot of information about their financial plans so that the service provider to take advantage of the information and possibly get involved to banking. For example, Amazon connected with two U.S. banks to offer a relevant product, they might pay for information from e- commerce or social network to know what of customers’ needs and influence them to choose the two banks. Consequently, RBC is at risk of losing their future clients. 

Online presences: With its website, RBC can bring its customers information including stock market,

mortgage, loan and give them access to their banking account. Customers prefer the convenience of using online banking or phone apps than going to any physical branches; which helps RBC’s best digital channel, mobile, improves up to 3.4 million users (19 percent more in one year). 

Artificial intelligence: Artificial intelligence is a technology development that possibly be a determining

element for competitiveness and profitability among financial organizations in future. It helps RBC and other banks to improve and modify their products and services to satisfy customers’ needs. However, when using artificial intelligence in investing, it is very 6

ROYAL BANK OF CANADA important for digital programmers to cooperate well with the financial analysts because if one side doesn’t understand the data or technology of the other, all efforts will fail. Therefore, it is necessary for financial institutions to invest in artificial intelligence to bring their best to their clients. [ CITATION Dav18 \l 4105 ] 2) Economic trends: After the latest earnings season, analysts said that Canadian banks is having a tough time dealing with risk of lending and considering on profit margins as a consequence of bad macroeconomic period and trade precariousness. Recently, three of the top banks have failed in satisfying market resulting from the advancing in loan loss arrangements, subdued margin and the disadvantage of capital markets counterbalance with their strength in managing retail and wealth. [ CITATION Nic19 \l 4105 ] In Canada, the employment is increasing while the unemployment rate is remaining low in 40 years. Recently, firms have to deal with lack of manpower and keeping it since the amount of workers changing their jobs is rising. RBC is also affected as they need to pay more for their workers too. 3) Global and other general trends: Not only technological and economics trends, but global and other general factors also have a huge impact in baking industry. Be aware of global trends and know how it impacts on the company helps us stand firm in the global market.

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Labour mobility

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ROYAL BANK OF CANADA Labour mobility brings multinational skilled workers from other countries /regions to business for a short period of time. This can help RBC to overcome lack of manpower and keep them in track with technical, detailed and quantitative information of all the tariffs worldwide of growing markets with developed economies.

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Unemployment levels

According to recent demographics, one can see a decline in the workforce due to aging. Also, the education system in Canada is not enough. As a result, 500,000 unemployed people aged 15-29 and a quarter of a million work parttime. Canada's economy aims to add 2.4 million jobs over the next four years, and Royal Bank has also implemented an RBC Future Launch. It is to help young people prepare for future jobs (Graph resource: RBC economic research).

Sustainability Strategies 1. Strategies being used by the company to stay competitive amid the challenges and trends discussed in part two. Royal Bank has three strategic goals and challenges. They focus on to be an undisputed leader in the field of financial services in Canada. In U.S, to be a trusted partner to companies and high net worth clients. In a global financial center, RBC become a financial services partner recognized for NAT's expertise. Canadian wealth management section: This management includes a Canadian property advisory project for a full service. Provide financial solutions to HNW and 8

ROYAL BANK OF CANADA UHNW customers, and RBC also have over 1,750 investment advisers. It provides investment management and real estate services through about 80 investment consultants. It is competing with local banks and investment firms. U.S wealth management section: United States management includes PCG and City National. RBC is the 7th largest PCG in U.S. It provides services to more than 1,900 financial addicts, small and medium enterprises, investment advisory firms. City National provides wealthy individuals and entrepreneurs with financial policies for their businesses. In the United States, RBC works in a competitive industry and RBC competes with other financial institutions that serve HNW and UHNW individuals. [ CITATION RBC18 \l 1042 ] 2. Corporate Social Responsibility strategies Royal Bank make essential efforts to have a positive impact on society, including business. Youth: Royal Bank is focusing on workforce to develop the hidden potential of young people RBC Future Launch: The future launch of the RBC is supporting young people in Canada. Teach to understand the barriers between the public and private sectors with hand on experience. RBC Youth Mental Well-being Project: The project provides life activities in a mental care counseling for teenagers and their families to maintain a healthy spirit for the

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ROYAL BANK OF CANADA future. RBC Race for the Kids: RBC Rack for Kids is an event of seventeen charity events that support the courage and engaging of children. Children are enjoying race and fundraisers are also being held for children around the world. Artists: we know that the arts are fundamental for the growth of energy societies and with strong economies. Therefore, support for the arts has long been a priority. With the program of emerging artists, RBC supports millions of dollars to different companies that give opportunities and help to promote the arts such as music, theater, visual arts, literature and cinema Environment: RBC is committed to generating a low carbon economy. RBC has partners with whom it works to support clients to respond to different situations related to the climate. This is done through programs that reduce environmental impact such as: Reducing Our Environmental Footprint, Environmental Donations, Environmental and Social Risk Management. 3. Employee motivation\ empowerment program(s) At RBC we support the talent of our workers, we know that a committed employee has a better performance and is more effective. In the same way, our focus and priority on customers in what helps us to guide the way of our business. Putting employees at the core of how we create and provide good work experiences puts us in a high place. Our purpose is to be part of our talent trying to make the work experiences of our employees

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ROYAL BANK OF CANADA more fun, to achieve this, we rely on: * listen to our employees * create and convert experiences * support mental health and employee welfare Conclusion In conclusion, conclusion technology trends in social media, online presences, artificial intelligence in technology, more also it influences economic trends, global and other general trends. To help this industry there must be some aspects to discuss on, and help bring out more employment, in this project we have discussed labor mobility and unemployment levels. Also what aspects help to stay competitive in challenges and trends so that they would have high network clients. The two main strategies that we discussed was the Canadian wealth management section and the US wealth management section. Also, we learned that many other social responsibilities have a relation in helping the bank towards this challenge, for example youth, RBC future launcher youth metal well-being project, artist and environment are a good example that help. One of the most important part towards a better banking is the employee motivation we have discussed in this project what does impact on this. Since working as a group, we have learnt to unite and empathize each other; we argue sometimes but at the end, everyone agrees to the best solution for the group. Therefore, we can work well together to get the best result. We have learnt what aspects we should be mainly used to determine the best bank, and how technology can have a main role in financial groups like RBC, what challenges banks face and what social strategies help the banks.

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ROYAL BANK OF CANADA Overall, we as a group are very happy to cooperate as a team and find out the main strategies for a better banking, how technology helps, how they proved better employments and how they keep up on themselves in today’s banking.

Bibliography

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ROYAL BANK OF CANADA Bonham, M. (2019). Royal Bank of Canada (RBC). Retrieved from The Canadian Encyclopedia: https://thecanadianencyclopedia.ca/en/article/royal-bank-ofcanada Community and Social Impact. (2019). Retrieved from Royal Bank of Canada. Corporate Citizenship Reporting and Performance. (2019). Retrieved from Royal Bank of Canada: https://www.rbc.com/community-social-impact/reportingperformance/index.html Corporate Profile. (2019). The Royal Bank of Canada. Toronto, ON. Retrieved from https://www.rbccm.com/en/about-us/culture-and-values.page Ligaya, A. (2018, April 8). Banks may be sidelined in age of social media, big data, warns RBC CEO. Retrieved from investmentexecutive.com: https://www.investmentexecutive.com/news/industry-news/banks-may-besidelined-in-age-of-social-media-big-data-warns-rbc-ceo/ Nye, J. (2019, October 11). Canada's labour market still on a tear. Retrieved from rbc.com: http://www.rbc.com/economics/daily-economic-update/CA %20Employment_Sep2019.pdf Perkins. (2018). How RBC became a choampion of diversity. The globe and mail. RBC. (2018, January 10). Royal Bank of Canada. Retrieved from https://www.rbc.com/community-social-impact/_assets-custom/pdf/2018-ESGReport.PDF RBC. (2019). RBC ROYAL BANK. Retrieved from rbccm.com: https://www.rbccm.com/en/insights/strategy-coverage.page

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ROYAL BANK OF CANADA RBC. (2019, December 15). Royal Bank of Canada. Retrieved from https://www.rbc.com/community-social-impact/ Saminather, N. (2019, August 29). Retrieved from globalnews.ca: https://globalnews.ca/news/5832673/canada-banks-economy-trade-uncertainty/ Trainer, D. (2018, May 24). Royal Bank of Canada bets big on Artificial intelligence. Retrieved from Forbes: https://www.forbes.com/sites/greatspeculations/2018/05/24/royal-bank-ofcanada-bets-big-on-artificial-intelligence/#5b598c526a31

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