RBC may just have zapped some of the selling power of brokers, with the big bank now promising to never outsource Canadian jobs to foreign workers solely to save money.
RBC may just have zapped some of the selling power of brokers, with the big bank now promising to never outsource Canadian jobs to foreign workers solely to save money.
The move follows a firestorm of public anger when the Royal Bank announced it was outsourcing its IT-related work to iGATE, and laying off 45 employees here in Canada. Angry customers tweeted, facebooked and emailed their dissatisfaction to the media and RBC, with some cashing out their bank accounts or transferring their mortgages to other lenders in protest.
In a statement issued Friday, the bank stated that “As part of its supplier review, RBC looked at the types of work the bank will and will not outsource to suppliers that execute all or part of the work offshore to ensure suppliers support RBC’s focus on creating Canadian jobs and prosperity.”
RBC promised to “not offshore work where salary savings is the primary reason and will make every effort to source in Canada.”
Scott Dawson, a Vancouver mortgage broker, was one of the first to take advantage of RBC’s public relations gaffe two months ago, telling MortgageBrokerNews that it “definitely helped me” and was a “talking point to open a conversation with a client.”
It was Dawson who created the webpage “RBC Mortgage Switch” on April 9, promoting it on his Twitter feed as a means for irate RBC customers to more easily move mortgages to another lender.
A week previous to updating the code of conduct, RBC released their Vibrant Communities report, highlighting the philanthropic side of the major lender in 2012.
Brad Compton, a mortgage agent with Invis Mortgages, feels the outsourcing scandal was overblown by the media, and that RBC’s charitable work is simply good public relations.
“I think the outsourcing scandal has long been forgotten by most,” says Compton. “The Internet and social media tend to blow most issues out of proportion, making them seem far worse than they actually are. Very few people that slammed RBC on Facebook, Twitter, etc., truly cared about the issue and were more interested in just being heard.
“From RBC's standpoint, showcasing the good work they do around the world is just good PR, and I would doubt this was put together in response to the scandal.”
The report opens by stating “RBC is consistently recognized as a leading corporate citizen, thanks to our community and environmental programs and the involvement of our 80,000 employees worldwide.” It goes on to point out that in 2012, “we contributed more than $95 million to causes worldwide through donations and sponsorships of community events and organizations.”
