In particular, McKay said the bank is interested in working with new payments technologies, as well as in automating some of its back office processes in order to trim costs.McKay also said many of the bank’s competitors are technology firms that have entered the financial services space but aren’t subject to the same regulations as banks, said McKay. These new rivals can operate at a lower cost but risk reducing the stability of the country’s financial system, he added.“Many of these entrants are excellent competitors — innovative, driven and responsive to their clients — but they may also distort the financial system with unintended risks that regulators cannot clearly see,” said McKay.His comments were similar to remarks last month by the CEO of TD Bank.TD chief Bharat Masrani calls for oversight of tech players in bankingIs TD Bank’s new chief executive Bharat Masrani notching up the bank’s risk appetite?TD chief executive Bharat Masrani called on financial regulators to introduce rules governing new entrants such as digital payment providers and alternative lenders. Masrani said non-traditional players who don’t have to abide by the same regulations that banks are subject to have a competitive advantage.Tech companies Apple and Google have been wading into the financial services space by creating digital wallets that allow customers to make payments using their smartphones. By facilitating money transfers, technologies such as Apple Pay and Google Wallet insert themselves in between banks and their customers, weakening the relationship. TORONTO — Royal Bank chief executive Dave McKay says RBC will need to work with early-stage companies — even those looking to snatch market share from the traditional banks — in order to thrive in an increasingly digital world.“We need large organizations in the public sector and business, RBC included, to work closely with early-stage companies, even the ones trying to disrupt us, to support, mentor and motivate their progress,” McKay told shareholders Friday at RBC’s annual meeting in Toronto.The bank will need to be part of a “thriving ecosystem” of entrepreneurs in order to innovate and “build the bank of the future,” he said.Kevin Van Paassen/Bloomberg
Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)RelatedPPP/C protests ‘illegal’ governmentMarch 22, 2019In “latest news”‘Call the elections if you are so popular’ …Jagdeo challenges President GrangerJune 13, 2019In “latest news”Granger promises PPP/C backseat in an APNU+AFC gov’tMay 3, 2015In “Politics” “This is an illegitimate Government,” PPP/C Presidential Candidate, Irfaan Ali exclaimed as he joined the scores of persons who are calling on the coalition government to step down.Hundreds of persons have now gathered outside of the Ministry of the Presidency, mounting pressure on President David Granger to announce a date for the polls.Organised by the Opposition, Peoples Progressive Party, the supporters are protesting the coalition administration’s “illegal” occupancy of the high offices.This comes in light of the expiration of the constitutional time-frame to host national elections. The elections were due three months after the passage of the no confidence motion in the National Assembly on December 21, 2018. However, GECOM recently wrote President David Granger highlighting that it will be prepared to host election sometime in November, 2019.This decision was rejected by Opposition Leader Bharrat Jagdeo who wrote the president reminding him that after March 21, the government becomes illegal.In an interview with reporters, Jagdeo promised that the protests will continue sporadically.