Comparative Analysis of RBC and SCB on Strategy

Royal Bank of Canada (RBC) and Standard Chartered Bank (SCB) are two giant banks

renowned globally. Both banks have their unique generic strategies and operations, which make

them stand out from each other. Accordingly, the market approach for each bank aims t to

achieve success In naturally competitive environments. This essay presents a comparative

analysis of the strategic framework of the two banks as a vital feature of their internal

environments.

First, it is essential to analyze and understand the difference in the digital strategy of the

two institutions. According to Karakowsky & Guriel (2015), organizations such as RBC and

SCB have invested heavily in digital technology to improve the customer experience and

streamline their operations. RBC has focused on developing its mobile banking app and other

digital platforms to offer customers a seamless banking experience. SCB has also invested

heavily in digital technology to improve its operational efficiency and provide innovative

products and services to its customers, such as electronic fund transfer, remote banking, and

automatic debiting. Typically, technology in both banks makes it possible to establish paper-free

electronic signatures, transforming customers’ experience significantly.

RBC has a large and diversified customer base, including individuals, small businesses,

and large corporations. The bank caters to the needs of different customers through its various

business segments. Similarly, SCB has a diverse customer base but a stronger focus on corporate

and institutional clients.

Regarding the geographical spread of the banks, RBC has a strong presence in Canada,

the US, and other developed markets such as Europe and Asia. The bank has been expanding its
presence in emerging markets but is still primarily focused on developed markets (García et al.,

2020). SCB, on the other hand, has a strong presence in emerging markets, focusing on Asia,

Africa, and the Middle East. The bank has been expanding its presence in developed markets, but

emerging markets remain its primary focus.

Besides, both banks operate in different economic conditions. RBC operates in Canada, a

developed economy with a solid financial system, while SCB operates in various emerging

markets, which present different economic challenges. RBC benefits from a stable economic

environment conducive to growth and investment. On the other hand, SCB faces the challenge of

operating in volatile and unpredictable economies, which affects its business operations.

However, SBC utilizes the opportunity of the growing markets to establish

The banks also strategize to handle political issues emerging in the outside environment.

Both banks operate in different political environments (Sexty, 2011). RBC operates in a stable

political environment, which supports the growth of the financial sector. However, SCB operates

in countries with varying political environments, which can affect its operations. Political

instability in these countries can affect the banks’ ability to operate and grow.

Another comparison is the business model. RBC is a diversified financial services

company that offers personal and commercial banking, wealth management, insurance, and

capital markets services (García et al., 2020). The bank strongly focuses on the Canadian market

and has expanded into the US and other countries. On the other hand, SCB is a global bank

focusing on emerging markets such as Asia, Africa, and the Middle East. The bank has a strong

presence in these regions and offers a range of banking products and services to retail,

commercial, and corporate customers.

 The banks also undertake an initiative to attain sustainability as a strategy. RBC and SCB

are committed to sustainability and have implemented strategies to reduce their environmental

impact and support social causes (Sexty, 2011). RBC has set targets to reduce its greenhouse gas

emissions and has launched initiatives to support sustainable financing and renewable energy.

SCB has a strong focus on sustainable finance and has launched several initiatives to support

environmental and social causes in the communities it serves.

Conclusively, while RBC and SCB have similar strategic priorities regarding digital

innovation and sustainability, their business models and geographic focus differ significantly.

RBC has a more substantial presence in developed markets, while SCB focuses on emerging

markets.
 References

García, A., Lands, B., Liu, X., & Slive, J. (2020). The potential effect of a central bank digital

currency on deposit funding in Canada (No. 2020-15). Bank of Canada.

Karakowskyy, L., & Guriel, N. (2015). The context of business: Understanding the Canadian

business environment. Pearson.

Sexty, R. W. (2011). Canadian business and society: Ethics & responsibilities. McGraw-Hill

Ryerson.