Royal Bank of Canada SWOT and PESTLE Analysis

Strength

1. Highly ranked global company and market leader in BFS segment Canada: Royal Bank of Canada enjoys market leadership in Canada. In domestic market, it ranks #1 or #2 based on market share across the Canadian banking fraternity. It is the largest full-service wealth advisory business. This Canadian multinational financial services company is the largest fund company and leader in high net worth market share. It also has got the competitive advantage of scale and reach. It has the largest distribution network in Canada. It has around 13 million Canadian banking clients. It has also received the highest service excellence and was recognized as Canada’s most valuable brand. It also clinched top spot in customer satisfaction among the big five retail banks in FY2016, FY2017 and FY2018. Besides, it ranked #1 in full-service brokerage investments by assets, revenue and profit. It is the largest discretionary money manager by assets under management and ranks #1 in private bank by revenue, profit, deposits and loans. RBC has also featured in the top 100 global companies as ranked in the 2019 Gender Equality by Equileap.

2. Broad range of services provided to customers: Royal Bank of Canada believes in providing exceptional services to the clients by constantly focusing on innovation. It helps in making the lives of its clients easier by providing a lot of services promptly, quite at the snap of fingers. The services are divided into business segments like Personal & Commercial Banking, Wealth management, Insurance, Investor & Treasury services, Capital Markets and Corporate Support. In Personal & Commercial banking, a broad suite of financial products and services are provided in Canada, the Caribbean and the U.S. Wealth management serves the affluent high net worth and ultra-high net worth clients. The Insurance segment caters to the insurance needs and solutions including creditor, life, health, home, auto, travel, wealth and annuities. In Capital Markets, the bank provides expertise in banking, finance and capital markets to corporations, institutional investors, asset managers, governments and central banks around the world. The Corporate Support provides technological and operational foundation required to efficiently deliver products and services to clients.

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Weakness

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Opportunity

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Threats

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Initiatives towards a sustainable future: Financial services organizations need to be committed towards working for a sustainable future through dedicated investments and initiatives. With its multiple initiatives, Royal Bank of Canada has reduced 18.4% absolute greenhouse gas emissions in 2019 over 2018. The total environmental footprint is defined as the sum of the environmental impacts of its operations, comprising of energy use, paper consumption, employee travel, water use and waste generation. It strives to make a difference by reducing its overall environmental footprints. In 2017, it became carbon neutral and is committed to achieve net-zero carbon emissions in annual global operations. For this, it engages in energy and emissions reduction programs and by sourcing renewable energy credits and high-quality carbon offsets to account for emissions it cannot eliminate. It has provided $7.9 million through RBC Tech for nature in FY 2019. It is aligned to the United Nations Sustainable Development Goals (SDG) and it measures the impact on the environment through RBC Impact Measurement Framework.

2. Supporting new ideas and partnerships to solve environmental challenges: RBC Tech for nature works with its various partners to leverage technology and innovation capabilities to solve the increasing environmental challenges. It supports clients in low carbon transition with its products, services and advice and plans to invest $100 billion in sustainable financing by 2025. This will help in enhancing industry specific expertise and client solutions to support clean innovation and climate resilience. It also uses scenario analysis to advance capabilities in climate risk management and assess various climate related risks. It also aims to reduce greenhouse gas emissions by at least 2.5% per year with a target of 15% reduction by 2023. It also aims to provide $10 million in annual support to universities and charities for developing technology solutions to climate and environment issues. Some of the major partners in this initiative include UNEP Finance Initiative, Climate Bonds, The Green Bond principles, Business Renewables Centre etc.

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