RBC says increasing ATM regulation will reduce consumer choice Students and seniors well-served already
Opening Remarks
Jim Westlake, Group Head, Canadian Banking
House
of Commons Standing Committee on Finance
(pdf 3 pages 83kB)
TORONTO April 19, 2007 — Citing the benefits
that Canada's competitive ATM network now provides across
the country, RBC Royal Bank today cautioned that any attempts
to increase regulation would have the unwanted effect of reducing
services and increasing costs to Canadians.
Speaking before the House of Commons Committee on Finance
this morning, James Westlake, group head of Canadian Banking
for RBC, emphasized concerns that the country's present ATM
system offers maximum choice and accessibility because it
is based on very competitive user-pay pricing.
"Without this competitive pricing flexibility, it is
unlikely that we would be able to continue to maintain a network
of 4,000 plus ATMs - innovation and access would suffer and
costs to consumers would rise," Mr. Westlake explained.
"Increase regulation and you will be reducing choice
- for students, seniors, people with disabilities and all
Canadians."
RBC has announced plans to expand its ATM network - already
the most extensive in Canada - by adding 264 on-site and 180
off-site locations over the next three years. To enable easy
student access, RBC has approximately 67 ATMs on 35 college
and university campuses across the country, with 446 within
one kilometre of 229 campuses. As well, approximately 90 per
cent of RBC Royal Bank branches are wheelchair accessible,
with more than 550 ATMs ergonomically designed for ease of
access. RBC also has 425 "talking" bank machines
in place, and was the first bank world-wide to provide audio-enabled
ATM service.
While acknowledging the Finance Committee's need to be responsive
to all Canadians, Mr. Westlake pointed out that, as Canada's
largest bank, RBC needs to be equally responsive to its own
constituency - the 12 million Canadians who have made RBC
their financial institution of choice, in a very competitive
banking environment. "Competition drives the products
and services we provide to all our clients - that includes
our ATM services," Mr. Westlake emphasized. "We
are in constant communication with our clients, and continuously
review our offerings in response to their feedback, to ensure
we're meeting their needs."
Last week, RBC announced an enhanced
line-up of personal account options, offering more ways
to earn higher interest, pay lower or no bank fees, and within
the RBC Signature No Limit Banking account, a refund of RBC
fees for three non-RBC ATM withdrawals. An unlimited debit
transaction feature has been added for students; seniors have
an additional option which allows them to bank for free.
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