About Atmia
About Atmia

RBC unveils $3.2bn tech budget in digital push

Thursday, June 14, 2018

by RBC Royal Bank of Canada

Royal Bank of Canada (RBC) is planning to spend $3.2bn on technology this year in a bid to attract new customers looking for more digital banking services.

The plan was revealed at an investor meeting in Toronto where chief executive David McKay set out a number of growth targets and an expanded technology budget.Royal Bank of Canada

The bank wants to use new technology such as artificial intelligence, digital services and social media to add 2.5 million new customers by 2023, a tyhreefold increase on its current rate of customer acquisition. 

RBC currently has 6.5 million digital users, an 8% increase on the previous year, and has released a number of new digital services in the last year via its RBC Ventures division, including a financial advice app and a digital platform for small business owners.

McKay has stated his belief that banks must diversify their offerings beyond traditional financial services in order to remain relevant to customers and to see off the threat from big tech companies and e-commerce platforms.

The bank is also targetting more than $1bn in costs savings as a result of greater automation and system consolidation. 

While RBC may be the bank with the biggest tech budget in Canada, it still falls well below the budget of other larger banks in the US and Europe. HSBC recently announced plans to spend $17bn on technology while JP Morgan has a budget in excess of $10bn, $7bn more than RBC.

The superior tech budgets and their importance were acknowledged by McKay in an interview with the Financial Times.

"The question every CEO should ask is, what's [JP Morgan CEO] Jamie [Dimon] doing with the extra $7bn," he said. 


Leave a comment (Your email address will not be displayed or shared)

Leave this field empty

No comments have been added. Please use the form above to add your comments.

Meet Our
Global Sponsors

Email IconEmail

Sign up to receive the news you want from ATMIA. We have a wide selection ranging from conference details, regional news and industry updates. You may update and change these details at any time. We look forward to staying in touch!

Social Media IconSocial Media

Be sure to follow us on LinkedIn, Twitter and YouTube

Bookmark IconBookmark ATMIA.com

Add atmia.com to your favorites, make it your homepage or pin the website to your task bar or desktop.


Subscribe to our RSS feed and stay up to date with all of our press releases.