RBC Overtakes TD; More Customers Are Valuing Mobile Banking: J.D. Power Report

[vkm]

TD lost its 10 year 'highest customer service satisfaction' streak to RBC. TD's competitive advantage are longer branch hours, and 7 day in-branch service. TD is no longer the bank that has the highest customer satisfaction - is it because customers value mobile banking channel more than the traditional in-branch channel? Would this mean that TD's competitive advantage is not as effective as it was 10 years ago?

http://www.baystreetblog.com/2016/0...-are-valuing-mobile-banking-j-d-power-report/

 

[resjudicata]

@vkm My prediction: among the dominant banks, RBC is going to win the FinTech game.

 

[cptheg3]

@resjudicata CIBC will give them a good run but they don't have the customers that RBC has...

 

[nathan3g]

@resjudicata Care to share more? Curious to know your reasoning behind this! (I don't really know what they're doing, FWIW, but always happy to learn more!)

 

[resjudicata]

@nathan3g (I have some inside information! Willing to make this anonymous prediction only.)

Non-insider info: almost none of the banks actually have the infrastructure to deliver on a FinTech promise, no matter how aspirational their marketing might be.

 

[enaga]

@resjudicata I understand you have insider of knowledge of RBC, but you don't have insider knowledge of the other big 5 (or the Americans). You wouldn't know if they are developing something good, or even better. Just my 2 cents.

 

[resjudicata]

@enaga I have no knowledge of RBC that is not at least matched by my knowledge of the other banks. I don't work with or for RBC or any bank.

Response to your edit: 99% of my income is from American sources...

 

[enaga]

@resjudicata I think you have presented you qualifications and both sides of the story very well now. Thank you. Are you saying that RBC is unlike the other banks in that it does have the infrastructure to deliver on a FinTech promise?

 

[resjudicata]

How could they possibly not? BMO already launched SmartFolio several months ago, and the only things holding the banks back would be fear of cannibalizing their own high-priced investment recommendations. They have the big advantage of brick and mortar locations, thousands of staff, make billions in net profit per quarter, heck RBC could probably just buy the top 10 Robo Advisors with barely a sweat. I think they more than enough have the infrasturcutre, but what is the need to cannibalize their own products when they continue to make record profits per quarter? Just my $0.02

 

[brennansb]

@resjudicata

FinTech

What's that

 

[jd4christ]

@brennansb Financial Technology. 2016 Technology in the 2005 banking world.

 

[robert0012]

@nathan3g RBC started a roboadvisor service for some clients in the USA as a sort of test, so presumably if it goes well down there it might eventually be brought to Canada as well! (My thoughts anyways)

 

[honoringintimates]

@resjudicata

FinTech game

FinTech = Financial Technology in general, or is this something specific?

 

[resjudicata]

@honoringintimates Think of all the apps and announcements you see about "robo advisors" and apps that will allow you to set and optimize personal savings goals, investment goals, set and receive reminders and nudges, "save more tomorrow" etc. All of those things are generically referred to as "FinTech" -- using all of the app technology that's been developed in spaces like Facebook and Instagram (and Pokemon Go) and using them in the banking and investment space.

The biggest hurdle is all of the privacy stuff. The second biggest hurdle is the capacity of banks to implement.

Based on my own experience and privileged insight, my calculated guess (no money down though) is that RBC will be the winner of the "game" or "race" to implement FinTech ("app" technology) for the retail consumer, whether or not they are first out of the gate.

 

[lionhearted]

@resjudicata Apple Pay is another example of a "FinTech" technology that's customer facing.

 

[resjudicata]

@lionhearted Yes...and observant observers might note that I just spent a few months in Singapore, which is at the forefront of FinTech...

 

[geronimoch]

@resjudicata RBC is investing quite heavily into the digital space - all products and services will eventually have some sort of digital/mobile footprint. Essentially, the vision is to turn the bank into something that runs as gets to market as quickly as a tech giant like Google or Apple. This has meant modern technologies and frameworks to work in, 'agile' methodologies, hiring for specialities, and pushing cultural shifts akin to tech companies. I imagine other banks also moving towards it but am seeing this transformation being taken head-on.

 

[resjudicata]

@geronimoch

 

[dartee]

@vkm I do think it is crazy that all of their teller wickets are always open when you go in to a branch. 90% of their banking should be able to be done online. All of the other banks are on board, and have cut down their tellers to 1 or 2 (in my smaller city) and halved the number of wickets in larger cities.

I currently bank with PC Financial and Tangerine for daily banking. Love them both so much. I can't stress enough how much I love them. No fees, great mobile apps (recently updated and being updated all the time).

I have other services with Scotiabank, and also credit cards through RBC and CIBC. These three are on the ball with their online services too. I've had accounts with TD before too and there is honestly triple the amount of tellers than is needed. It is definitely busy with customers every time I have gone into a branch but it is because their online site sucks. Their fees are extortionate too.

 

[4everu]

@vkm My take on things, based on being with TD for many many years, and still retaining a couple small, now largely dormant accounts:

Their branch hours and in-person service are great. I rarely need or want them, but they're there and CSRs are always very polite and competent. But their service fees are expensive.

Their online services are headache inducing and expensive, and their website is a nightmare to navigate. These are the very reasons I switched most of my finances to ING/Tangerine.

Back when I was considering going with TD's E-series for some investing, the fees to just set up the account were ridiculous, never mind do any trading. And I had to physically meet someone to do this. It was ridiculous.

And then just 2 days ago I was again reminded of how this stuff typically goes with TD.... I was trying to transfer $ out of a TD account. Had tried Interac transfer thing... waited about a week, it just never went through. No notice, nothing.... weird. Ok, so I thought I'd rescind that attempt and try again. Instant fee to do so. Why? It's not as though it cost them anything.
Then in order to do this transfer I had to go in person to get my money out and physically transfer it to where I wanted it. This kind of nonsense never happens with ING, but is just typical of the TD experience, at least for me.

TD Website: Good god it's difficult to do things there, nevermind find information or something specific. It's as though(and probably is in fact) the website design hasn't changed for the past 15 years but they just keep adding things and taking things away in random fashion.

Now I don't have a TD mobile app(does one exist?) but I don't want one. Their website is already sketchy as it is, I wouldn't trust anything to an app.

Can't speak to RBC's services and mobile banking. Maybe they're both awesome in comparison. Or maybe they just don't make things as hard as TD does. Wouldn't be too tricky to do.