RBC Mobile Banking

March 8, 2011

Strictly Confidential ± Not for Further Distribution

Do you recognize these «.

Mobile Banking

ATMs Banking at the Branch

Telephone Banking

Online Banking

« Channels that were introduced over time to better serve our customers
STRICTLY CONFIDENTIAL ± NOT FOR DISTRIBUTION BEYOND RBC

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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. ³RBC 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 According to Forrester Simplicity Interactions that customers do frequently and require few steps to complete Immediacy Information that matters to customers Immediately Context Information that is relevant to the customer¶s current location

Banking Tasks More Suitable for Mobile

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Mobile Consumer and Emerging Trends
Canadian Mobile Consumer
Canadians continue to adopt devices, especially smartphones
ercentage of Canadian Installed Base
£

Technology Trends
Mobile commerce, payments and lead generation are hot topics

100% 80% 60% 40% 20% 0% 2009 2010 2011 2012 2013 2014 Traditional Smartphone

The way people are using device is changing ‡ 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.

Tablets are impacting other Internet based device market share ‡ Expecting 50-80 new tablets to be introduced in 2011. ‡ According to Forrester, tablets may cannibalize netbooks and laptops. Customers delay or forgo purchases for a tablet.

‡

Security is still a concern for first-time mobile bankers
51% 24% 7%
Other (specify)

2%
It so unds to o co mplicated

7%

8%
¡ 

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

I am wo rried I am no t familiar abo ut the with mo bile amo unt and techno lo gy (i e. applicatio ns fo r co st o f data a mo bile required when device) using my mo bile
¢

Securi co ncerns

I have no need fo r mo bile banking

Dominate OS players will maintain firm grasp on mobile market ‡ 2010 ± BB: 58%; iPhone: 23%, Android: 8%; WM: 7% ‡ 2014 ± BB: 34%; Android: 23%; iPhone: 20%; WM: 16%

What¶s the impact on RBC?
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Evolving from Mobile Banking to Mobile Commerce ± US Perspective
ALERTS & NOTIFICATIONS
‡ Informational Alerts via SMS ‡ Mobile marketing

SIMPLE MOBILE BANKING
‡ Account Balance ‡ Account Details ‡ Pay Bill / Transfer Funds ‡ Branch & ATM Locator

ENHANCED MOBILE BANKING
‡ Remote Deposit Capture (RDC) ‡ Simplified Access

MOBILE PAYMENTS
‡ P2P ‡ Remittance ‡ NFC ‡ Ticketing ‡ Micropayments

2007 A few FIs introduced browser banking and/text banking

2008 - 2009 FIs, such as BoA, Chase and Suntrust introduced a Mobile Banking iPhone App. Other banks followed shortly. ‡ BoA: iPhone App v2.0, Blackberry & Android App ‡ Wells Fargo: iPhone App, CEO Mobile ‡ Chase: iPhone/Gift Planner ‡ Citibank: iPhone App

2010 Major players offering triple play (text, browser and downloadable app).

2010 and beyond FIs involved in mobile payments trials

‡ Browser Banking: BoA, Wells Fargo and Citibank ‡ Text Banking: Wells Fargo ‡ First generation iPhone was released in May 2007

‡ BoA: Text Banking ‡ Citibank: Text Banking ‡ Wells Fargo: Android, Blackberry & Palm Apps ‡ Chase: Blackberry App, iPhone RDC, iPhone App v2.7, Android App

‡ Wells Fargo, Bank of America, and US Bankcorp participating in NFC trial with VISA

Canadian FIs lag US counterparts by 1-2 years
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