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.
Outsourcing simply means acquiring services from an external organization instead of using internal resources (Butler, 2000). By using outsourced resources, organizations can gain a competitive advantage by utilizing contingent staff to accomplish strategic goals without incurring the fixed overhead. By focusing on the leading edge and highly specialized skill sets, outsourcing providers can often offer higher quality services, or at a lower price than the client organization. Typical reasons for outsourcing go beyond simple contingent staffing. Outsourcing providers are able to maintain economies of scale with regard to specialization (...
The banking industry is under pressure in today’s business climate. Banks have been through big changes. There is opportunity, but there is also increasing competition. To be the preferred bank means changing “good enough” into a unique value proposition. And that means changing the way people have always done things, change on this level requires cutting edge technology. Change cannot be achieved with a simple directive or surface adjustment especially within the banking industry. It requires an innovative rethink of the entire system, in a strong partnership between bank leaders and their change agents. New systems and policies must support the strategy to be successful. The real test of a good strategy implementation plan is whether the people understand the strategy, are motivated and enabled to implement it, and actually start achieving its goals.
These accolades represent the Royal Bank of Canada’s leadership in granting customers and clients the finniest banking service and customer experience, which translates into one of the Royal Bank of Canada’s greatest strengths in the industry. This success is further evident through their second quarterly report of the 2015 year, in which the Royal Bank of Canada earned a net income 2.4 billion dollars (“About RBC”, n.d) compared to BMO, another member of Canada’s “big five”, that only earned 1 billion dollars of net income during the same year and quarter (“BMO Financial”, n.d). Furthermore, being one of Canada’s most well-known banks is another strength the Royal Bank of Canada can boast about; due to its popularity and relevance it is more often than not that clients will affiliate themselves with a trusted and relevant brand such as the Royal Bank of
Usually the firms to which the activities are outsourced are specialized in their area of work and so the parent firm gets the advantage of getting the work done through competent employees. Therefore, outsourcing gives competitive advantage to the companies which can be easily sustained by them without much effort.
The Royal Bank of Canada (RBC) is a blue-chip financial services company, and the largest of its kind in Canada. The bank is considered a blue-chip company due to its relative low-risk as an investment. With over 16 million public and private clients in over 35 countries, the bank has a secure international financial holding. They serve a wide fiscal demographic; with wealth management services for investments and high net worth clients in North America, and general personal/commercial banking services available for the general market ("Royal Bank of Canada"). As well as being an internationally recognized brand, RBC has weathered extreme economic strain, for example, during the crash of the American housing bubble in 2008 RBC boasted a 9 month high in their stocks ("Corporate Profile"). This evidence indicates a history of financial security and future stability.
RBS did indeed go up, in fact, saying that it went to the top of the food chain won’t be an understatement. But it also came down, crashing.
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.
Competitive advantage of an organization is aims to promote a more profits from competition. Achieved through many avenues include produce a quality product or a good service in the market. Competitive advantage helps the company maintain a good position in the long time and improve the quality of products as the company's image in the developed market potential. Outsourcing is an arrangement in terms of services provided to other companies or prepared at home. It is a trend that is becoming in information technology, is considered as the intrinsic to manage the business of the company. Available for contract and most of the companies managed by outsourcing such as business analysis in criticism by people outside the company.
The industry is composed by a continuum of banks which produce a homogenous product — banking service. Domestic as well as foreign competition is violent. Not to forget the fact that ICBC has not been the first bank to embrace internet banking. So, it is all the more reason which places the bank in the most precarious position to continuously shield it self from the volleying competition.
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.
...urcing services, the company operation will be became a mess. This is because one organization can’t run a lot of task or project at one time. Therefore an organization need outsourcing in the way to help their organization run smoothly.
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.
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...
It is a known fact that the banking industry plays a huge role in today’s society, the industry has grown rapidly of many decades and still growing. The banking sector is that sector of the society that is actually responsible for the handling of financial assets for other sector of the economy, they do this by investing the financial assets in order to create more wealth in the society while regulating all the activities involved in the process. (What is the banking Sector 2015)
Personal Banking: State Bank of India offers a wide range of services in the Personal Banking Segment which are indexed here.:-