Weaknesses of RBC
RBC is among the biggest financial banks in Canada and the whole world in terms of market capitalization. Currently, the bank has several branches in USA and 33 other countries in the world. The bank offers services such as commercial and personal banking, capital market services and products, insurance, investor’s services, and wealth management globally. The bank has over 84, 000 employees serving over sixteen million customers in 35 countries (RBC, 2017). RBC’s strengths and opportunities have facilitated such growth of the business. However, there are weaknesses associated with RBC, which if not addressed may result in losses.
High rates of false positive. The rate of fraudulent customers has brought huge losses to the customers of RBC. According to the social network analysis, over $30 billion funds are lost yearly due to fraudsters (Chandrasekhar, 2017). The current system is not intelligent enough to establish the frauds, which result in high losses of funds and customers. High rates of false positive means that the systems acknowledge abnormal changes in the systems, which are not likely to edit or add harmful information to the system. Such a high rate means it will be difficult to know when potential harm occurs.
The high cost of analytic systems. According to the social network analysis carried out, over $10 million is spent to support the analytic system and a maintenance cost of $1 million annually to find data, process it and even formatting (Chandrasekhar, 2017). Such high costs mean that the overall profit of RBC is lowered.
Usage of old technology. For instance, one of the servers installed was found to provide information of the past five days instead of the current information (Chandrasekhar, 2017). Also, there was a formation of superclusters where one’s information is liked to everybody. This result in a lack of privacy on the system. This can lead to a reduction in several customers.
Chandrasekhar, R. (2017). RBC: Social Network Analysis.
RBC (2017) Succeeding in Succession: A Guide to Keeping Family Harmony Through Your Business Transition, 16 – 18.