RBC Mobile Banking

March 8, 2011

Strictly Confidential – Not for Further Distribution

 Do you recognize these ….

Mobile Banking

ATMs
Banking at the
Branch

Telephone Online Banking

Banking

… Channels that were introduced over time to better serve our customers

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 RBC Mobile App

Value Propositions: (i) Provide convenience to our on-the-go consumers and (ii) Empower clients with
personal banking knowledge to take action (interact) efficiently and immediately.

RBC deployed their iPhone and BlackBerry mobile banking apps in December of 2010. In less than month,
RBC successfully had more than 250K mobile app downloads and with more than 1 million sign-ins; 20%
of the sign-ins have resulted in a transaction.

“RBC finally came through with a great app, with a clean and simple interface, that does
everything I need it to do!”

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 Forrester believes Mobile Banking will Displace Online Banking for Routine
Interactions

Simplicity, immediacy, and context of the mobile will eventually displace online banking for frequently used
day-to-day banking tasks.

The Mobile Channel Has Three Unique Capabilities

Banking Tasks More Suitable for Mobile
According to Forrester

Simplicity Immediacy Context

Interactions Information that Information that

that customers matters to is relevant to the
do frequently customers customer’s
and require few Immediately current location
steps to
complete

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 Mobile Consumer and Emerging Trends

Canadian Mobile Consumer Technology Trends

Canadians continue to adopt devices, especially smartphones Mobile commerce, payments and lead generation are hot topics

Percentage of Canadian Installed Base

100%

80%

Traditional
60%
Smartphone
40%

20%

0%
2009 2010 2011 2012 2013 2014
Tablets are impacting other Internet based device market share
• Expecting 50-80 new tablets to be introduced in 2011.
The way people are using device is changing • According to Forrester, tablets may cannibalize netbooks and
laptops. Customers delay or forgo purchases for a tablet.
• Canadians are embracing the device as a everyday, 24/7 tool for
personal communication; group communication (email, blogging);
and event management (social media, calendar and browser)
• Usage of device capabilities can still grow - (18-30): 59% have used
GPS service and ~40% use the mobile to take pictures.

Security is still a concern for first-time mobile bankers

Carriers are slow to invest into their networks, but at least data
51% plans are starting to decline
• Market newcomers (Wind, Motricity, Public Mobile), putting a lot of
24%
pricing press on the Big 3 to lower data pricing.
7% 2% 7% 8%

Othe r (s pe c ify) It s o unds to o I a m no t fa m iliar I am wo rried S e curity I ha ve no nee d

Dominate OS players will maintain firm grasp on mobile market
c o m plic a te d with m o bile a bo ut the c o nce rns fo r m o bile
te chno lo gy (i.e. am o unt a nd ba nking • 2010 – BB: 58%; iPhone: 23%, Android: 8%; WM: 7%
a pplic atio ns fo r c o s t o f da ta • 2014 – BB: 34%; Android: 23%; iPhone: 20%; WM: 16%
a m o bile re quired whe n
devic e) us ing m y m o bile

What’s the impact on RBC?

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 Evolving from Mobile Banking to Mobile Commerce – US Perspective

ALERTS & SIMPLE MOBILE ENHANCED MOBILE

NOTIFICATIONS BANKING MOBILE BANKING PAYMENTS

• Informational Alerts • Account Balance • Remote • P2P

via SMS Deposit
• Account Details • Remittance
Capture (RDC)
• Mobile marketing
• Pay Bill / • NFC
• Simplified
Transfer Funds
Access • Ticketing
• Branch & ATM
• Micropayments
Locator

2007 2008 - 2009 2010 2010 and beyond

A few FIs introduced FIs, such as BoA, Chase Major players offering FIs involved in mobile
browser banking and/text and Suntrust introduced triple play (text, browser payments trials
banking a Mobile Banking iPhone and downloadable app).
App. Other banks
followed shortly.

• Browser Banking: • BoA: iPhone App • BoA: Text Banking • Wells Fargo, Bank of
BoA, Wells Fargo and v2.0, Blackberry & • Citibank: Text Banking America, and US
Citibank Android App • Wells Fargo: Android, Bankcorp participating
• Text Banking: Wells • Wells Fargo: iPhone Blackberry & Palm in NFC trial with VISA
Fargo App, CEO Mobile Apps
• First generation • Chase: iPhone/Gift • Chase: Blackberry
iPhone was released Planner App, iPhone RDC,
in May 2007 • Citibank: iPhone App iPhone App v2.7,
Android App
Canadian FIs lag US counterparts by 1-2 years
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