1. Introduction
Royal Bank of Scotland (RBS) is one of an international bank in the world. RBS is a bank that provide a personal banking, investments, wealth management, loans, and it a commercial banking services from RBS Malaysia. So, to make sure that all the transaction are happen they must check all the transaction by log in their personal account. They also can ask or check their account through website, email, or just call the call centre or the bank hotline. This RBS now are open in many country around the world. That makes the bank are have good relationship with others country.
Nowadays, the technology are increases rapidly. The RBS also improving in their bank technology. As example. RBS created a website. This website may control the relationship between the bank and their customers. To make their relationship a good, the website will produce a forum or site to easy the customer to give their opinion, suggestion or to tell their problem that they having when using RBS bank account. As an international bank, it need to improve their products and services or technology in getting the customer stratifications. It also need to make customer trust to using RBS.
Competitive advantage is mean a firm’s ability to create value in a way that is rivals cannot. While outsourcing is a business strategy that moves some of an organization’s functions, activities, processes, and also decision responsibility from an organization to outside providers. This outsourcing is done by doing negotiating contract agreements with a vendor who takes the responsibility for the quality, customer services, production process, and people management of the function. So, to allow organizations to focus on their core business and create a competitive advantage, the organization must use outsourcing. Outsourcing is use to reduce operational costs. However, outsourcing have a lacking or disadvantages such as quality risk, quality service, language barriers, labor issues, and legal compliance and security.
2. Summary of the issue
The Royal Bank of Scotland or RBS is a large international banking and financial services company. RBS has servers over 30 million of customers in the United Kingdom, Europe, the Middle East, the Americas and Asia. RBS have been open at many country around the world. RBS is a bank that providing bank account, personal banking, online banking, saving, credit card, loans and many more.
Based on the article by Hannah Furness, RBS having a problem on the computer glitch that makes millions of customers unable to access their account.
RBC Financial Group uses a customer relationship management (CRM) strategy that provides a variety of services for a variety of clients. The strategy allows for individual customers to trust RBC and develop a personal relationship with each and every client. One major factor that allows CRM to operate effectively is the use of technologies and analytics to help classify each client’s financial situation. These customer profitability-based techniques allowed RBC to categorize their clients into A, B, and C groups so that the sales teams could optimize their efforts in catering to these different clients. This strategy holds the following strengths: optimizing sales efforts to different customers, easily accessible electronic sales leads, centralized and standardized financial decisions, and building personalized and sustainable customer relationships. There are a few weaknesses to the system though including the complexity in predicting future positions of companies despite the use of analytics as well as the complexity in creating consistency when using these
The Chief Executive of RBS, Stephen Hester defended outsources company and said that there was no evidence that the problem is due from company outsources. The error is occurred after the software upgraded to the bank’s computer system last Wednesday, and it affects 17 million customers. Although the problem can be resolved on Friday, but RBS has a backlog of more than 100 million transactions that were not paid in or out of the bank.
In April 2008, RBS had already asked the investors to pump in £12 Billion after unveiling another £5.9bn of credit crunch write-downs. The bank says in a statement that it has marked down £5.9bn of assets and dividends for 2008 will also be cut. Britain’s biggest rights issue also heaps pressure on chief executive Sir Fred Goodwin but he stays adamant and dismisses any talks of him resigning and failure.
RBC is one of the Caribbean's leading diversified financial service institutions, with over 100 years of heritage serving this region. Their extensive services include personal commercial, corporate and investment banking, wealth, insurance, trust and asset management.
and 39 other countries. RBC’s strategic goal is to be the undisputed leader in financial services in Canada. RBC’s vision is to be amongst the world’s most trusted and successful financial institutions. RBC’s strategy is to focus on markets and client segments where it can apply its strengths to win business, deepen relationship with clients and communities, and create shareholder value. From RBC Annual Report 2015 http://annualreports.rbc.com/ar2015/#by-the-numbers RBC has a diversified business mix with 52% of earnings coming from Personal & Commercial Banking and 23% from the Capital markets segment. Approximately 62% of revenue is generated in Canada, 21% in the U.S. and 17% from all other countries (Exhibit 3). From a business standpoint, Enterprise Risk’s main priorities are: •
The expanding global market has created both staggering wealth for some and the promise of it for others. Business is more competitive than ever before, and every business, financial or product-based, regardless of size or international presence is obligated to operate as efficiently as possible. A major factor in that efficient operation is to take advantage of every opportunity to maximize profits. Many multinational organizations have used derivatives for years in financial risk management activities. These same actions that can protect multinational organizations against interest rate futures and currency fluctuations can be used to create profits for those same organizations.
RBC has many products that is can offer customers not only banking, but insurance as well and they effectively promote them by implementing different promotional strategies. This can be seen through
Initially the bank’s core banking system was product oriented, but the need of the hour was to develop a customer oriented system, because the challenge is to build customer loyalty, cross sell, and enhance repeat business.
HSBC has various risk and benefits with its tagline of the “World’s Local Bank.” Some of the risks they face are the delicacy of entering into a new area and process of how they enter into these markets. HSBC has to be very careful about what markets they try to enter. Coming into a small market with the tagline “World’s Local Bank,” may be taken the wrong the way. I know from experience, especially in my town and surrounding area that when a large well known bank comes in that the local small banks take a hurt. Though some people leave these small banks to join the new ones a majority of people feel overwhelmed by the presence of the large banks. HSBC needs to be careful to do the necessary research before entering into a new market especially
Barclays is a major global financial services provider operating in Europe, Asia, the Americas and Africa. It moves, lends, invests and protects money for people worldwide. Barclays is present in over 50 countries and employs over 140,000 people.
Barclays group PLC is one of the largest financial providers in America, Europe, Asia, Australia, Africa and Middle East. , It which is mainly engaged deals with credit cards, retail banking, investment banking, corporate banking, and wealth management. The bank is made up of investment and corporate banking, global retail banking and wealth management, each of which has several business units (Burn, Cartwright &Maudsley, 2009).
Communication modern technological tools that have been enhanced by Information Technology are having an impact on changing the very structure and communication of banking. That is, clients are enabled to make their banking transactions whenever and wherever they want. Bank clients, by just logging on their online account, can transfer any amount of money from their account to any other account, check their last processed banking transactions and apply for loans and other banking services. According to Keyes ( 2000, p.591) 'electronic checks provide consumers with the benefits of convenience and safety while allowing billers to maintain their existing depository relationships with their banks'. Further, e-mails has enabled bank employees to notify their customers of any new enhanced bankin...
A system which offers cash management services for customers, reporting the transactions of their accounts and portfolios, throughout the day is known as a Banking System. In India the banking sector, should not only be hassle free but it should be able to meet the new challenges posed by the technology and other external and internal
First, according to Section 2 IBA 1983, Islamic Banking Business is business whose aims and elements do not involve any element which is not approved by the religion of Islam. Based on the definition stated, it is clear that the Islamic Banking practices must according to or complients with the Shari’ah obliged in the Al-Quran and As-Sunnah. In conjuction with the Shari’ah appliances, the Islamic banking business must not include or prohibited involvement of illegal activities. Unlike Islamic Banking, Conventional Banking practises its system based on man-made laws and not included any religious guidelines to support their systems.
It is true, that Internet Banking is useful for customers as well as for the banks. On the one hand, it helps people have direct and quick access to their bank accounts, on the other hand, helps the banks to save costs. ‘Clearly, in order to conti...