Royal Bank of Canada - Digital Transformation Strategies

Royal Bank of Canada - Digital Transformation Strategies

Summary

This report provides insight into RBC’s digital strategies, including its digital transformation strategies, innovation programs, technology initiatives, estimated ICT budget, and major ICT contracts.

Royal Bank of Canada (RBC) is a multinational financial institution providing personal and business banking, wealth management, and institutional banking services. The personal and business banking divisions offer deposit services, loans, credit cards, mortgages, investments, bancassurance, payments, international trade, and business advisory services. The wealth management division offers investment management, wealth management, banking and custody, and credit and financing services. The institutional banking division offers global asset management and investor services.

RBC launched RBC Reach in July 2018 in partnership with Highline BETA, a startup support venture company. It is a corporate accelerator that helps startups grow their business further. In 2021, RBC Reach accepted applications from startups engaged in developing business-to-business, health and wellness, and mobility solutions.

RBC launched the Digital Innovation Lab in Toronto. Developers use the lab to work on innovations such as biometric authentication for mobile banking and big data technology.

RBC’s Borealis AI research institute develops advanced machine learning and AI applications through collaborative research with leading research centers across the world. Borealis AI has built labs in Toronto, Montreal, Waterloo, and Vancouver where research scientists perform applied and fundamental research in unsupervised learning, deep learning, natural language processing, and reinforcement learning to develop solutions for unmet challenges in different industries. The institute focuses on ethical AI.

In September 2021, RBC announced its plan to launch the Calgary Innovation Hub with an aim to create 300 tech jobs in the field of AI, machine learning, data analytics, full stack agile software delivery and others over the course of the next three years.

Scope

• RBC invests considerably in cybersecurity to protect digital assets such as customer data and software applications from cyberattacks. The bank has a team of cybersecurity and technology professionals that thwart cyberattacks through round-the-clock monitoring and analysis of external and internal threats.
• RBC utilizes a mix of private cloud, public cloud, and on-premise servers to consistently launch innovative fintech applications. In 2021, RBC invested in cloud computing technologies that enable engineers to manage the bank’s servers and computer clusters from a single platform and quickly deploy databases.
• RBC invests in AI solutions to improve customer experience and enhance its operational efficiency. The bank rolled out AI-powered digital platforms for both retail and institutional clients that have saved their time and offered them valuable insights.
• RBC is eager to adopt open banking as it enables the quick delivery of innovative fintech solutions to customers. Open banking refers to the process in which banks, with the consent of their customers, share their financial data through APIs with software developers or with other banks for the purpose of developing the likes of payment apps and buy now, pay later services.

Reasons to Buy

• Gain insights into RBC’s tech operations.
• Gain insights into its digital strategies and innovation initiatives.
• Gain insights into its technology themes under focus.
• Gain insights into its various product launches, partnerships, investments, and acquisition strategies.