Thorough SWOT Analysis of Royal Bank of Canada – The Largest Bank In Canada By Market Capitalization

Updated on: Jan 2, 2022
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In the previous article, we did a detailed SWOT analysis of Bank of Montreal – one of the most dominant banks in Canada. Today we are here with another detailed SWOT Analysis of Royal Bank of Canada.

Royal Bank of Canada is a Canadian multinational financial services bank based in Halifax, Nova Scotia. Royal Bank of Canada is the largest bank in Canada by market capitalization and one of the major Canadian international banks. The Bank’s evolution has offered an opportunity to explore two centuries of banking history, with that of Canada and the world as a whole.

The Royal Bank of Canada is one of many large banks that has increased its digital banking activity in recent years. Their mobile banking app received top marks for providing the greatest customer service. If you’re interested in acquiring digital marketing abilities but don’t know where to begin, our CEO and Founder of IIDE, Karan Shah offers a brief Masterclass on Digital Marketing 101 and it is free of charge.

Before we go into the SWOT Analysis of Royal Bank of Canada, let us know about Royal Bank of Canada as a company.

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About Royal Bank of Canada 

SWOT Analysis of Royal Bank of Canada - RBC

The Royal Bank of Canada is a worldwide financial services corporation headquartered in Canada. Over 16 million customers are served by the bank, which employs over 86,000 people globally. It has a corporate headquarters in Toronto and a head office in Montreal and was founded in 1864 in Halifax, Nova Scotia.

Royal Bank of Canada was named one of the world’s most prominent financial firms in 2017. Royal Bank of Canada has covered over 1,200 locations throughout Canada, the United States, and the Caribbean with its banking and financial services. RBC capital markets, in addition to banking services, provide investing services.

Quick Stats on Royal Bank of Canada
Founder Maritime Trade Merchants
Year Founded 1864
Origin Halifax, Nova Scotia
No. of Employees 83,842
Company Type Public
Market Cap CA$ 140.21 Billion (2020)
Annual Revenue CA$ 47.2 Billion (2020)
Net Income/ Profit CA$ 11.4 Billion (2020)


Products & Services by Royal Bank of Canada

With approximately ten million clients through its network of 1,209 branches. Here are some products and services RBC has to offer: 

  • Retail banking
  • Corporate banking
  • Investment banking
  • Mortgage loans
  • Private banking
  • Wealth management
  • Credit cards
  • Finance and insurance

Competitors of Royal Bank of Canada

RBC was ranked 50th in the Forbes Global 2000 listing. It competes with several companies which are:

  • Bank of Montreal.
  • Canadian Imperial Bank of Commerce
  • Scotiabank.
  • Toronto-Dominion Bank.
  • Desjardins.

Now since we learned about the bank, let us have a look at the SWOT Analysis of Royal Bank of Canada.

SWOT Analysis of Royal Bank of Canada

SWOT analysis of Royal Bank of Canada is an examination of the company’s strengths, weaknesses, opportunities, and threats. This allows the organisation to understand its market position, as well as what areas need to be addressed and where it can shine. It also aids the corporation in strategizing its business framework and elements affecting its growth.

To better understand the SWOT analysis of Royal Bank of Canada, refer to the infographics below:

SWOT Analysis of Royal Bank of Canada - SWOT Infographics of Royal Bank of Canada

Below is a step-by-step detailed guide to help you with the SWOT analysis of Royal Bank of Canada.

Strengths of Royal Bank of Canada

Royal Bank of Canada, being one of the industry’s leading corporations has several advantages that enable it to prosper in the marketplace. These advantages not only assist it in retaining market share in existing areas but also in expanding into new ones.

  • Extensive Network: The bank has more than 83,000 employees with a global presence of 36+ countries with a very wide range of products and services.
  • Wide Range of Portfolio: The variety of products and services the bank offers acts as one of their strengths wherein they can be benefited from one of the products even if another product fails in the market.
  • Awards & Recognition: The Bank is the best investment bank in Canada according to Wall Street Mojo. Also, not only in Canada but the bank is amongst the top 10 North American banks in terms of assets and market capitalization.
    SWOT Analysis of Royal Bank of Canada - RBC Digital Transformation
  • Digital Transformation: Royal Bank of Canada, according to their client needs, has transformed their work into a digital path and they are one of the top 10 banks in Canada which has always been at the forefront of digital transformation.

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  • Automation of Activities: Successful automation of banking activities with a well-developed IT structure and Infrastructure has made the overall efficiency better.    
  • Strong Digital Marketing Strategy: With a very strong online presence on every social media site has built a strong customer relationship. Want to know how social media works as a strength for the Royal Bank of Canada? Then you must check out the benefits of social media marketing to get the answer to your query. 

Weaknesses of Royal Bank of Canada

A company’s weaknesses keep it from realizing its greatest potential. To assist the company to excel in all areas, one should assess the weaknesses and seek to improve them. 

  • Environmental Criticism: Royal Bank of Canada has been criticized several times by environmental activists for financing oil sands extractions that cause negative effects on the environment and human health.
  • Customer Service: Royal Bank of Canada customer service is not only poor in managing customers but also the employees of their customer service management feel that they aren’t treated well, wealth insurance is not given and they are expected to work for long hours.
  • Cash Flow Problems: There is a lack of proper monetary planning at Royal Bank of Canada in regards to cash flows, leading to certain situations where there isn’t suitable cash flow as needed leading to unnecessary unplanned borrowing.
  • Need to Invest More in New Technologies: According to the country’s scale of expansion and the geographical areas Royal Bank of Canada needs to invest more funds in technology to coordinate the processes across the board. Currently, the investment in technology is not on par with the vision of the company.
  • Depend on Canada & US: Royal Bank of Canada’s global presence is not up to the mark. The bank is dependent more on Canada & US. Also, the Royal Bank of Canada lags behind the top Canadian banks in terms of several branches. 

Opportunities for Royal Bank of Canada

Opportunities are external variables that work in the company’s favour, and the company can take advantage of them to grow.

  • New Clients from Online Channels: The company has invested a significant amount of money in the internet platform during the last few years. This speculation has provided the Royal Bank of Canada with a fresh deal channel. In the coming years, the company may take advantage of this opportunity by better understanding its customers and meeting their needs through massive data analysis.
  • Moderate Growth Rate: Following a moderate growth rate in the business, a financial uptick and increase in client spending provide an opportunity for RBC to attract new clients and increase its share of the total industry.
  • Expansion to Other Global Markets: The company is planning to expand to more developing countries as well as Arab nations too. This serves them as an opportunity to acquire a new customer base.
  • Development of Technology: Since the FinTech industry is growing at a very rapid pace, there are advancements in technologies too. Using these kinds of technologies can increase efficiency and decrease cost.
  • Interest Rate: Lower interest rates than compared to previous years provides an opportunity for Royal Bank of Canada to undergo expansion projects that are financed with loans at a cheaper interest rate.
  • Low Inflation Rate: The low inflation rate can bring more stability in the market and enable credit at a lower interest rate to the customers of the Royal Bank of Canada.

Threats to Royal Bank of Canada

Threats are external elements that may have an impact on the bank. To avoid inflicting damage to the company, these concerns should be addressed as quickly as feasible. The threats to RBC are as follows :

  • Financial Risks: Because the company operates in several countries, it is subjected to currency fluctuations, which are exacerbated by the world’s increasingly volatile political climate in a variety of industries.
  • Shortfall of Skilled Employees: The lack of skilled staff in particular global markets poses a risk to Royal Bank of Canada’s long-term benefit growth in such industries.
  • Increased Marketing Efforts: Due to the shifting focus towards digital marketing, there is an increasing number of promotional messages which are being sent by competitors. It clutters up the space, which results in losing out on customers. You must also be knowledgeable with a variety of digital marketing skills to keep up with the competition.
  • Rising Controversies: RBC has been in several controversies such as, in 2007 RBC has refused certain nationalities to open U.S. dollar accounts with the bank or environmental criticism which we discussed in weaknesses if continued can negatively affect the business of RBC.
  • Cyber Security: It’s been one of the major risk factors in the financial sector. It is a must for financial systems to have the ability to withstand this cyber-attack by increasing IT  monitoring and control.

Now that we have come to the end of this thorough SWOT Analysis of Royal Bank of Canada. Let’s see the summation of this article in the conclusion.

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To Conclude

Royal Bank of Canada is growing in the sector of banking in Canada, the US, as well as the global market too. As we had a look at the SWOT Analysis of Royal Bank of Canada, there is a lot more to grow in many aspects.

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We hope this blog on the SWOT Analysis of Royal Bank of Canada has given you a good insight into the company’s strengths, weaknesses, opportunities, and threats. You can also read our comprehensive study on the SWOT Analysis of JP Morgan Chase.

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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]


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