How RBC is Transforming SMB / SME Banking Through Innovative Digital Products

The Royal Bank of Canada (RBC) stands at the forefront of the global banking industry, consistently focusing on expanding its product offerings through a variety of cutting-edge software solutions. 

RBC has successfully launched several applications and tools designed to meet the diverse needs of its clientele. Among these, RBC Mobile Banking with NOMI, a sophisticated AI-powered analytical tool— which stands out for its intuitive design and personalized banking experience. 

For small and medium-sized businesses/ enterprises (SMBs/ SMEs), RBC has introduced a suite of powerful tools including PayEdge, Cheque Pro, and Insight Edge, each aimed at providing SMB/ SME clients with an efficient and robust tech stack to streamline their day-to-day operations.

RBC's commitment to leveraging technology is revolutionizing the way SMB/ SME banking is conducted. By offering innovative digital products, RBC simplifies financial management and empowers businesses to focus on growth and development.

The Need for Innovation in SMB/ SME Banking

Small and Medium-sized Businesses/ Enterprises (SMBs/ SMEs) form the backbone of the global economy, driving innovation, creating employment, and fostering economic growth. However, despite their critical role, these businesses often face significant hurdles within the traditional banking framework. 

Challenges such as: 

• limited access to financial resources.
• a one-size-fits-all approach to banking services. 
• managing finances in a rapidly changing economic environment. 

The traditional banking model, characterized by its reliance on physical branches, paper-based processes, and a general lack of customization, has frequently been unable to meet the specific needs of SMBs/ SMEs. 

Businesses require flexible, scalable, and personalized banking solutions that can adapt to their unique demands. They need financial services that are not just transactions but partnerships that can help them navigate the complexities of modern business landscapes.

Moreover, the digital revolution has shifted expectations across all sectors, with SMBs/ SMEs increasingly demanding banking services that are accessible, intuitive, and seamlessly integrated into their daily operations. The rise of fintech startups has further highlighted the gaps in traditional banking services, proving that digital-first solutions can offer more efficiency, better user experiences, and greater value to SMBs/ SMEs.

Innovation in SMB/ SME banking is not just about digitizing existing services but reimagining banking as a holistic, supportive ecosystem that grows with businesses. 

This includes:

• offering digital tools for account management.
• tailored financing solutions.
• efficient payment processing systems.
• data-driven insights to help SMBs/ SMEs make informed decisions.

As SMBs/ SMEs are increasingly involved in global markets, their banking needs have become more complex, requiring solutions that can scale and adapt to international transactions and multi-currency operations.

RBC's Digital Transformation Journey

The Royal Bank of Canada (RBC) has embarked on a comprehensive digital transformation journey, positioning itself as a leader in the evolution of banking for small and medium-sized businesses/ enterprises (SMBs/ SMEs). 

Early Initiatives and Strategic Vision

RBC's journey began with a clear strategic vision to harness the power of digital technology to meet the changing needs of its customers. Recognizing the potential of digital tools to enhance customer service, improve operational efficiency, and create new value propositions, RBC invested significantly in its technology infrastructure. This included upgrading core systems, enhancing cybersecurity measures, and adopting cloud technologies to ensure scalability and flexibility in its digital offerings.

Launch of Digital Products for SMBs/ SMEs

RBC's digital transformation for SMBs/ SMEs is showcased through products like NOMI, PayEdge, Cheque Pro, and Insight Edge, designed to meet their unique needs with features like predictive insights and efficient payment processing. 

Having a history of being a banking technology disruptor, RBC never stopped delivering new solutions for their client’s specific needs, and their digital centric approach represented an advantage during the 2020’s pandemic when they managed to onboard 400,000 new digital customers.

Some of the solutions offered by RBC for SMBs/ SMEs and individuals are: 

• RBC Mobile Banking – a mobile banking application available on iOS and Android, featuring NOMI, an innovative account dashboard with AI capabilities.
• RBC Express - premium online banking tool.
• PayEdge – accounts payable platform that automates payments to suppliers by integrating with your accounting system. 
• PayPlan – a pay-over-time solution.
• Moneris – payment processor and POS. 
• Ownr – automated legal tools.
• RBC Insights Edge – make more informed decision about business, clients and markets.
• RBC Global Trade - online platform that is used to issue, receive and manage trade transactions, including letters of credit, documentary collections and guarantees. 
• RBC Global Connect – Free, online global trade resource. 
• Cheque Pro – an electronic cheque depositing solution.
• Mobile Cheque Deposit – a functionality of RBC Mobile app which allows you to deposit a cheque by taking a picture. 
• Digital Business Advisor – an online platform offering advice for your business operations. 
• Automated loans and lines of credit calculators. 
• Credit cards featuring Avion Rewards. 
• Business Accounts tailored to your business needs. 

Let’s delve deeper into RBC’s solutions and see how their tech stack can help SMB's/ SME's reduce friction and have a better banking experience.

Innovative Digital Products Offered by RBC for SMBs/ SMEs

The Royal Bank of Canada (RBC) has taken significant strides in redefining the banking experience for small and medium-sized enterprises (SMBs/ SMEs) through a suite of innovative digital products. These tools are designed to simplify daily operations and provide strategic insights and financial solutions tailored to businesses' unique needs. Here’s a closer look at some of the key digital products RBC offers to SMBs/ SMEs:

RBC Mobile Banking

The RBC Mobile App is a comprehensive digital banking solution designed for business owners who need to manage their company’s finances on the go. Offering convenience and flexibility, the app allows users to:

• View account balances and transaction details for bank accounts, credit cards, and loans.
• Utilize NOMI, an innovative account dashboard, for clear spending decisions with trends, alerts, and overviews of cash flow.
• Deposit cheques using your smartphone.
• Improve cash flow with a Request Money feature to remind clients about outstanding invoices and receive real-time notifications on payments.
• Manage both business and personal RBC bank accounts easily within the same app.
• Locate the nearest RBC branch and ATM with the app’s GPS feature.
• Securely lock misplaced client or credit cards directly from the phone.

Features like Vantage Snapshot offer a clear picture of the value you get from an eligible RBC bank account, while the Split with Friends feature simplifies managing shared finances. Additionally, you can view and contribute to your investment accounts, including TFSA, RRSP, RESP, and more, directly through the app.

Business-specific features ensure managing your financial picture is straightforward, from instant payment requests to staying on top of cash flow and understanding your business’s performance with NOMI’s detailed insights. The app also supports up-to-date balance views, real-time transaction checks, mobile bill payments by photo, fund transfers, Interac e-Transfers, and international money transfers, among other functionalities.

Another interesting feature of RBC Mobile app is the Mobile Cheque Deposit feature, enabling users to deposit cheques digitally with ease. This functionality allows for the capture of cheque images using a smartphone or tablet camera, facilitating immediate deposit into the user's account.

Compatibility includes Android phones operating on OS 10 or later (Android tablets not supported) and requires iOS 14 or later for iPhone, iPad, and iPod Touch, with specific features like Siri and widget previews also requiring iOS 14+.

RBC Express

The RBC Express Mobile Banking is a premium mobile solution tailored around SMBs/ SMEs banking needs. The solution is for businesses which are looking to delegate banking tasks to employees, need to manage many business accounts, and businesses who are reliant on efficient financial reporting and make large payments and transactions.

This app aims to streamline business banking processes, making financial management more accessible for business owners and operators on the move.

RBC PayEdge

RBC PayEdge stands out as a transformative solution in RBC's suite of digital products, designed to cater to the diverse and complex payment needs of SMBs/ SMEs. This platform offers a convenient end-to-end payments and reconciliation solution to businesses. Its design and functionality are appreciated by bookkeepers and accountants for its ability to streamline payment processes and integrate seamlessly with major accounting platforms.

Key features of RBC PayEdge:

• Versatile Payment Integrations and Funding Flexibility - Provides the flexibility to access all funds across Canadian bank accounts and Mastercard or Visa credit cards, enabling businesses to execute multiple supplier and invoice payments in one consolidated order.
• Simplified Supplier Payments - The platform simplifies the process of setting up suppliers and paying them in their preferred format. Businesses can directly download supplier information from their accounting or ERP solution or create supplier records within RBC PayEdge. 
• Seamless Accounting Integration - RBC PayEdge boasts seamless integration with most accounting and ERP software, including QuickBooks Online, Sage, and Xero. 
• Global Payment Capabilities - Businesses can make payments globally with upfront pricing based on their specific pricing package, enhancing transparency and predictability in international transactions.
• Multiple Payment Methods - RBC PayEdge supports a wide array of payment methods, including wire transfer, Interac e-Transfer for business, EFT, USD cross-border ACH, EUR International Payment, bill payment, and cheque.
• Credit Card Payments Optimization - An innovative feature of RBC PayEdge is its ability to facilitate payments through credit cards, even to suppliers who do not accept credit cards. 

Setting up RBC PayEdge is straightforward, involving a few simple steps: adding funding sources, setting up suppliers, integrating with accounting software, and creating and sending payment orders.

RBC PayPlan

PayPlan by RBC offers a flexible pay-over-time solution that allows customers to make purchases through equal monthly installment loans directly from RBC Royal Bank of Canada, the lender for all PayPlan loans. This service is designed to make purchasing decisions more manageable for customers, aligning with their budget through fair and transparent lending terms. Security is a priority, with all PayPlan checkouts utilizing HTTPS secure encryption to safeguard personal information.

For customers, applying for PayPlan by RBC is straightforward during the checkout process at participating retailers. This system does not function like a credit card; instead, it provides an installment loan with equal monthly payments. Pre-qualifying involves a soft inquiry that doesn't impact the credit score, whereas accepting the loan terms and completing checkout involves a credit check that may affect the score. Currently, PayPlan by RBC does not report loan status to credit bureaus, though this could change in the future.

Merchants benefit from PayPlan by RBC by receiving full payment upfront minus a merchant discount fee, typically within two business days of settlement request. PayPlan by RBC handles loan repayments and fraud issues, offering both 0% APR and interest-positive programs with various terms to meet different needs. The integration process is quick and supports leading e-commerce platforms with a flexible API for custom builds, making it a suitable option for businesses across numerous industries.

The service aims to boost revenue, average order value (AOV), and customer lifetime value through its full-funnel, white-label solution. 

Moneris

Moneris, established through a joint venture between RBC and BMO, is a Canadian payment solution provider with over two decades of experience, supporting over 325,000 merchant locations across Canada. It offers a broad array of e-commerce services and payment solutions designed to meet the diverse needs of businesses.

Features and services provided by Moneris include:

• Collaboration with Wix: Moneris partnered with Wix to enable businesses to build customized online stores, leveraging one of the leading website building platforms.
• Next-Day Payments: Moneris facilitates next-day access to funds for RBC merchants, enhancing the cash flow process without additional costs. 
• Support Network: Offers continuous access to support and advice, providing businesses with the necessary guidance for their payment systems.

Moneris positions itself as a leader in the Canadian payments industry by ensuring businesses can efficiently accept payments in various contexts while receiving reliable support.

RBC Insight Edge

RBC Insight Edge is a sophisticated analytical dashboard that equips business owners with comprehensive data insights, enabling them to make well-informed business decisions. Utilizing anonymized transactions from credit and debit cards, alongside demographic and geographic data, the tool provides a real-time overview of consumer behaviors and market trends through a user-friendly interface.

Core Functionalities:

• Business Benchmarking: Allows businesses to analyze current market trends and their position relative to competitors, identifying strengths and areas for improvement.
• Customer Insights: Delivers detailed analyses of customer spending patterns, aiding in the refinement of sales and marketing strategies.
• Market Exploration: Facilitates the investigation of various neighborhoods nationwide, offering insights into their commercial activity and consumer spending habits.
• Strategic Growth Support: Simplifies the process of gathering pertinent information for strategic planning, aiding in the identification of growth and investment opportunities.
• Data Privacy and Protection: RBC Insight Edge emphasizes privacy and security, processing only non-identifiable, aggregated data.

Targeted at retail and consumer services sectors, RBC Insight Edge for Small Business translates anonymized transaction data into actionable insights, presenting:

• Shopping Behavior Tracking: Offers real-time data on consumer shopping patterns across Canada.
• Operational Optimization: Provides data on peak business hours to assist in planning store operations and staffing.
• Competitive Benchmarking: Supplies real-time data for neighborhood-specific purchasing trends, helping businesses understand their market position.
• Customer Demographics: Includes detailed demographic profiles, such as income, population density, and spending habits, to enhance customer targeting.
• Real Estate Decision Support: Shares growth patterns and demographic data for neighborhoods, including information on major malls, to inform real estate decisions.

In essence, RBC Insight Edge for Small Business is designed as an analytical tool to aid SMBs/ SMEs, ensuring that strategic decisions are data-driven and informed by current consumer and market trends.

RBC Global Trade

RBC Global Trade™ provides an online platform designed to facilitate the management of trade-related transactions for businesses. This service enables the issuance, reception, and administration of letters of credit, documentary collections, and guarantees through a web-based interface that is accessible from any location at any time.

Core functionalities of RBC Global Trade include:

• Transaction Management: Users can handle letters of credit, guarantees, and documentary collections online, submitting requests and applications as needed.
• Online Document Access: The platform offers access to images of trade documents, simplifying document management and review processes.
• Reporting and Insights: It provides tools for accessing and customizing reports, allowing businesses to generate insights based on their trade activities.
• User Access Control: Businesses can mitigate risks and manage user permissions by establishing daily or transactional limits.
• Integration with RBC Express®: Users of RBC Express® can access RBC Global Trade directly through a single sign-on, enhancing the user experience.

Operational Improvements:

• Resource Optimization: The platform aims to reduce the time and resources typically required for the manual creation and management of trade documents.
• Template Usage: Users can set up and utilize templates for various trade instruments, ensuring compliance with specific letter of credit requirements.
• SWIFT Compatibility: Letters of credit issued through RBC Global Trade are prepared to be SWIFT-ready when processed by RBC Trade Operations.

RBC Global Connect

RBC Global Connect is an online platform offering free access to a range of resources aimed at facilitating international trade for businesses. This digital tool provides insights into market profiles, global economic trends, and practical tools to assist businesses in expanding their operations overseas. Additionally, the platform includes access to the RBC Trade Club, which serves as a networking hub, connecting businesses worldwide.

Key Features of RBC Global Connect:

• Market Insights: Users can access detailed profiles of various countries and stay updated on global economic trends to make informed decisions.
• Partner Discovery: The platform enables businesses to identify potential importers and suppliers, supporting the expansion of their trade networks.
• Compliance Guidance: Provides essential information to help businesses navigate international trade regulations and ensure compliance in different markets.
• No Cost Registration: Businesses can sign up at no cost, gaining immediate access to the platform's comprehensive trade resources.

RBC Trade Club Advantages:

• Global Networking: Specifically for eligible RBC clients, the Trade Club offers a platform to connect with businesses and clients from partner banks around the world, facilitating international collaboration.
• Industry-Specific Matchmaking: Delivers customized networking results based on a company’s specific industry, products, and strategic goals, streamlining the search for compatible business partners.
• Exclusive Membership: Access to the Trade Club is exclusive to select RBC clients, with more information available through consultation with an RBC representative.

Cheque Pro

Cheque-Pro™ is a remote cheque depositing service designed for businesses, enabling electronic deposits of cheques into RBC Royal Bank CAD or USD business accounts via RBC Express online banking or RBC Online Banking for Business. This service is particularly beneficial for businesses that frequently deposit cheques, operate multiple offices, or are located far from RBC branches.

Advantages of Cheque-Pro include:

• Reducing the need for bank or courier trips for cheque deposits.
• The ability to view, print, and save images of the front and back of cheques.
• Same-day credit for deposits made before 10 p.m. EST on regular business days.
• Enhanced account reconciliation and reduced account adjustments, as deposits must be balanced before submission.
• Centralized capture and reconciliation of cheque deposit details from various locations.

Requirements for Cheque-Pro:

• Enrollment in RBC Express online banking or RBC Online Banking for Business, with business accounts accessible on the platform.
• Acquisition of a compatible digital cheque scanner, available for purchase or lease from RBC at a monthly service fee.

Cheque-Pro offers a streamlined and secure solution for businesses looking to optimize their cheque deposit processes, providing convenience and efficiency in managing financial transactions.

However, there is also an easier way to deposit checks, and is also offered by RBC – the Mobile Cheque Scanner. The Mobile Scanner is an in-app functionality for the RBC Mobile App.

Impact of RBC's Digital Products on SMBs/ SMEs Banking

The introduction of innovative digital products by the Royal Bank of Canada (RBC) has significantly improved SMBs/ SMEs banking, marking a paradigm shift in how small and medium-sized enterprises manage their finances and interact with their bank. 

Here are the areas impacted by RBC’s Digital products:

• Enhanced Operational Efficiency
• Improved Access to Financial Services
• Data-Driven Insights for Better Decision-Making
• Strengthened Customer Relationships
• Broadening the Scope for Future Innovations

Challenges and Future Directions

As the Royal Bank of Canada (RBC) continues to lead the way in the digital transformation of SMBs/ SMEs banking, it faces a dynamic landscape filled with both challenges and opportunities.  Navigating the future will require addressing several key challenges while also embracing emerging trends and technologies to further revolutionize SMBs/ SMEs banking.

Overcoming Challenges

• Cybersecurity Concerns: RBC must continue to invest in state-of-the-art cybersecurity measures to safeguard its digital platforms and maintain customer trust.
• Regulatory Compliance: Staying ahead of regulatory changes and ensuring compliance without stifling innovation is a delicate balance RBC needs to maintain.
• Technology Adoption Barriers: RBC faces the challenge of facilitating this transition, requiring efforts in education, support, and perhaps even customization of solutions to meet diverse needs.
• Integration with Existing Systems: RBC needs to ensure its products are compatible and can be seamlessly integrated into the broader ecosystem of business operations.

Future Directions

• Expanding AI and Machine Learning Applications: AI and machine learning will continue to play a crucial role in personalizing banking services, optimizing operations, and providing predictive analytics. RBC founded Borealis AI as a research institute that helps the bank to further harness AI and ML to offer their clients advanced financial insights, personalized advisory services, and automated financial management tools.
• Sustainable and Socially Responsible Banking: As businesses and consumers become more environmentally conscious, there is a growing demand for sustainable banking practices. RBC can lead the way in developing green financing options, supporting eco-friendly projects, and promoting social responsibility in its SMBs/ SMEs banking services.
• Leveraging Blockchain Technology: Blockchain offers tremendous potential for enhancing transparency, security, and efficiency in banking operations. RBC could explore blockchain for smart contracts, international payments, and fraud reduction, providing SMBs/ SMEs with more secure and efficient banking solutions.

Conclusion

Facing the challenges ahead, including cybersecurity threats, regulatory hurdles, and the ongoing need for technology integration, RBC's commitment to innovation and customer-centricity positions it well to navigate the future. The bank's exploration of emerging technologies like blockchain, cloud, and AI, coupled with a focus on sustainable and responsible banking, promises to further revolutionize SMBs/ SMEs banking.

As RBC continues to innovate and adapt, it sets a new standard for the industry, demonstrating the profound impact that digital banking can have on the growth and success of SMBs/ SMEs in the digital age.

If you want to keep up with the digital transformations in banking, schedule a discovery call with one of our industry experts. We want to learn more about how we can help you achieve your tech goals for the next year. 

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