Case analysis of RBC
2/8/2014
Situation –
The RBC Financial Group was the largest bank in terms of asset and market capitalization and a huge customer base but was not doing well in terms of profit, talking about the scenario of that time is Canada’s finance industries in flux from changes in banking regulations, many smaller banks changed their focus away from retail banking or were acquired by larger banks. Internet banking was a threat as it made a way for foreign banks to enter the domestic market. Non-traditional competitors entered the market with specialized products.
The bank was struggling with the seven out of eight ranking among financial institutions in the bank’s internal value for money study. The Canadian public increasingly wanted value and personal service from its banks. The competition among the leading financial institution was fierce as industry responded to deregulation and new niche market entrance. The major quest being, turning the unprofitable customers and products into profitable ones.
The aim is to establish CRM at RBC financial group was to integrate all the data related to a customer: this includes all customer contacts, transactions, accounts and interaction history with the customer. The bank was trying to use the CRM tools, good news is that the latest reports of customer profitability reports are more comprehensive and accurate than with the bank’s old profitability model. In 1997, a research was conducted to know what aspects of Banking they valued most.
Now we have the real customer profitability numbers, and through our customer relationship management (CRM) tools, there are a lot of customers’ preferences and needs, the question is, “What do we do with this information? How can the bank derive value from CRM and customer profitability? How can we turn the unprofitable customers and products into profitable ones? Is there a way to enhance the bank’s value in the eyes of the banking public?”
How a financial institution focuses on
Situation –
The RBC Financial Group was the largest bank in terms of asset and market capitalization and a huge customer base but was not doing well in terms of profit, talking about the scenario of that time is Canada’s finance industries in flux from changes in banking regulations, many smaller banks changed their focus away from retail banking or were acquired by larger banks. Internet banking was a threat as it made a way for foreign banks to enter the domestic market. Non-traditional competitors entered the market with specialized products.
The bank was struggling with the seven out of eight ranking among financial institutions in the bank’s internal value for money study. The Canadian public increasingly wanted value and personal service from its banks. The competition among the leading financial institution was fierce as industry responded to deregulation and new niche market entrance. The major quest being, turning the unprofitable customers and products into profitable ones.
The aim is to establish CRM at RBC financial group was to integrate all the data related to a customer: this includes all customer contacts, transactions, accounts and interaction history with the customer. The bank was trying to use the CRM tools, good news is that the latest reports of customer profitability reports are more comprehensive and accurate than with the bank’s old profitability model. In 1997, a research was conducted to know what aspects of Banking they valued most.
Now we have the real customer profitability numbers, and through our customer relationship management (CRM) tools, there are a lot of customers’ preferences and needs, the question is, “What do we do with this information? How can the bank derive value from CRM and customer profitability? How can we turn the unprofitable customers and products into profitable ones? Is there a way to enhance the bank’s value in the eyes of the banking public?”
How a financial institution focuses on