Since introducing this priority, we
have identified and eliminated
significant duplication across the organization, created enterprise
centres of expertise and further centralized purchasing and other
infrastructural activities. We have recently increased our focus
on revenue and client-oriented initiatives to accelerate revenue
growth. Some notable examples are provided below.
The RBC Snowbird Package introduced in August draws on the products
and services of several RBC businesses and addresses the specific
needs of a group of clients – Canadians who vacation and live
in the Southern U.S. during the winter months. The RBC
Snowbird Package offers special rates on banking, travel insurance, mortgage and foreign
exchange services for long-stay travellers. The package is designed
to give clients a worry-free stay in the U.S. by making it easier
to handle their financial transactions from an expanding
network of RBC Centura branches and ATMs in the Southeast U.S.,
a dedicated toll-free telephone number and best-in-class travel
To facilitate cross-selling and strengthen our offering to U.S.
clients, RBC Centura enhanced the insurance specialist program
launched last year in collaboration with RBC
Insurance. Under this
program, mobile insurance specialists are assigned to RBC Centura
branches where they provide a wide range of insurance solutions
to clients through personal referrals from branch employees. The
results to date have been very encouraging with over 2,000 referrals
RBC Centura is also working with RBC Mortgage to identify RBC
Mortgage clients who could benefit from RBC Centura products and services.
Anchoring these relationships with RBC Centura branches provides
an opportunity to deepen client relationships and strengthen client
loyalty. RBC Centura is also working with RBC
Dain Rauscher to serve
clients of its Public Finance and Asset Management divisions in RBC
Centura’s geographic footprint. At the same time, RBC Centura
is cross-selling RBC Mortgage and RBC Dain Rauscher capabilities
to its clients.
In partnership with RBC Centura, RBC
Investments is growing our
North American private banking business by introducing private
banking services for high net worth clients in the U.S., as well
as Canadian clients with U.S. interests. This initiative begins
to establish RBC Investments Private Banking in
major U.S. markets where RBC has a presence. Through our pilot
in an RBC Centura branch located in Boca Raton, Florida, we offer
private banking services (consisting of banking, lending and wealth
management solutions) to clients, using a highly personalized relationship
RBC Insurance and RBC Royal
Bank partnered to improve efficiencies
and win new business by creating the Investment
Credit Facility program
for Canadian clients. This program allows high net worth policyholders
to borrow up to $5 million against the collateral in their universal
life insurance policies. Using the credit underwriting experience
of RBC Royal Bank and the insurance expertise of RBC Insurance, we
are able to deliver a well-priced and tax-efficient financial
vehicle to our clients easily and conveniently from one source.
Since the launch, we have approved investment credit facilities
worth more than $121 million.
The creditor division of RBC Insurance collaborated with the
RBC Royal Bank eBusiness and client experience
teams to better integrate its creditor insurance products in Canada.
we simplified and standardized processes across all product lines
and channels, enabling us to view the same client information through
all distribution channels, virtually eliminating manual handling,
duplication and paper storage. With over 2.5 million creditor clients,
and more than 10 million retail clients in Canada, this will significantly
reduce costs, eliminate client irritants and improve overall relationships.
Given that emerging market countries represent 75 per cent
of the world’s population and 50 per cent of global GDP, emerging
market debt can be a component of clients’ global investments.
Accordingly, RBC Investments and RBC
Capital Markets employed the
capabilities of risk management, the sales force of RBC Capital Markets
and technology along with the expertise of RBC Investments in emerging
markets to form the Emerging Markets (EM) Fixed Income Group. In
addition to the Toronto team, which includes traders, a sales desk,
analysts and strategists, an affiliate desk was established
in London to provide markets in non-dollar EM bonds. Providing our
clients a wider range of global fixed income products and advisory
services enables us to strengthen our existing relationships and
attract new business. We are the only Canadian financial institution
with an EM research and trading group enabling us to better compete
with other major firms around the globe.
As cross-enterprise initiatives continue to evolve, some
of the opportunities are becoming more intricate in their structure,
more wide reaching in scope and more powerful in their impact.
The Integrated Products Group, consisting of teams from
RBC Capital Markets and RBC
Dain Rauscher charged with incubating
cross-enterprise opportunities, have had initial success working
with RBC Mortgage, which in 2003 originated 126,000 residential
mortgages in the U.S. amounting to US$28 billion. Traditionally,
these mortgages were sold in bundles to competitors who then repackaged
them into smaller packages that were converted into securities,
not unlike bonds, for sale to retail investors. The securitization
process facilitates the movement of investments from less efficient mortgage debt
markets to more efficient capital markets – a process
that is entirely invisible to the homeowners, but for the financial
institution granting the mortgage, is crucial to managing its balance
sheet and risk exposure. The RBC Mortgage
Committee, comprising representatives
from each of our five businesses, tackled the challenge of
distributing these mortgages through RBC Dain Rauscher’s U.S.
institutional fixed income platform rather than through a competitor
and concluded there were significant opportunities to create
a positive impact by altering the way in which mortgage loans were
distributed. In the spring of 2003, for example, in one large transaction
the Committee coordinated the securitization of US$130 million
of mortgage loans.
As Canada’s premier Automated Clearing House (ACH) direct
deposit and payment provider, we offer our clients leading-edge
technology payment services. In 2003, RBC
Global Services processed
more than 250 million ACH payments. RBC Global Services is the
payment engine behind many bank services. For example, RBC Global
Services provides RBC Banking with its Pre-Authorized
to regularly debit client accounts for their
RSP-matic product. Another collaboration with RBC Banking provides
online tax filing to Canadian small business and other business
clients through the RBC Banking Online Banking service. During
2003, client use of this product grew by 30 per cent.
RBC Global Services collaborated with RBC
Capital Markets to
form the Hedge Funds Service Group, enhancing our product and service
offering by creating a unique model in the Canadian market. Both
businesses provide hedge fund products to high net worth and institutional
investors: RBC Capital Markets is the leader in the Canadian market
for traditional prime brokerage and RBC Global Services is one
of the first custodians globally to provide hedge fund services.
The benefits to our existing and prospective clients include
a wider range of hedge fund products and services from a single
source. This also means an enhanced competitive position in the
hedge funds market.