RBC Mortgage Rates – Big Bank Competition?
Posted on | July 15, 2009 | No Comments
Yesterday I wrote an article on the competition between Wells Fargo and Bank of America in concerns to the home loan industry. There is little doubt that the reputation is that Wells Fargo is much better but Bank of America is making a huge marketing push to increase the amount of home loans they provide. With that being said, does RBC have a chance to compete in the mortgage business? Overall mortgage rates are pretty much the same at all three so what can RBC do to make themselves a competitor?
One thing is for certain, RBC does not have the government assistance that either Wells Fargo or Bank of America can get at the drop of a hat. We all know that each of these banks received $25 billion in TARP funds. While we have no idea what they did with this money, it is still capital that they are able to use to gain customers. RBC has to find a way to gain customers without BILLIONS of dollars of assistance.
A little info about RBC from their corporate website:
Based in Raleigh, N.C., RBC Bank has total assets of more than $33 billion, ranking us among the five largest banks in North Carolina, and the 40th largest bank in the country. RBC Bank has approximately 5,800 employees across the Southeast.
In today’s economy, RBC Bank is especially fortunate to be a part of the Royal Bank of Canada (RBC) family. With deep knowledge and experience, RBC is one of North America’s largest and most stable financial institutions, backed with a strong financial profile. RBC Bank clients enjoy the service, attention and relationships associated with a “hometown” bank, but with the breadth and depth of a global financial institution.
The one thing that will help them compete is eing a “hometown” bank. When going to get a mortgage, future and current home owners want to be treated like people and not like numbers. This is an opportunity in which RBC can demolish Bank of America. With that being said, stepping up their marketing plan to compete with the banking giants is going to be very hard. We will see what they have to offer in the months ahead. Honestly, I hope RBC finds a way to take Bank of America business. As far as Wells Fargo, I have only heard good things.
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