It is proposed that the board of directors inform the shareholders of the investments the Royal Bank of Canada intends to make over the next five years to update its computer systems so as to increase its competitiveness while enhancing privacy protection.
In a recent PWC report on banks, the President and CEO of the Canadian Bankers Association states that banks in many instances have legacy systems. And when they’re trying to harness and add all this new capability to those older systems, that obviously inserts all kinds of complexity in terms of how they’re going to build that out and how they’re going to bring that to market. This finding is all the more troubling in that obsolete systems make banks more vulnerable to cyberattacks and limit their ability to explore the full potential of artificial intelligence. Although we are aware of the sensitive nature of this information, as shareholders and consumers of financial products we ask that the following information be disclosed: (1) The amounts that will be invested in the upcoming years to modernize the systems; (2) The investments that will be made to develop the human capital that will be deployed to ensure that human resources are adapted to these new technologies; (3) The means the Bank will use to assist clients should their personal information be stolen, notably (i) Equifax credit file monitoring and alerts as soon as material changes are noted in their credit rating that indicate unusual transactions; (ii) Internet scans to detect the presence of certain personal information of members on suspicious Internet sites; (iii) Identity restoration: adoption of measures to restore the identity of a member whose identity has been stolen. We believe that the disclosure of this information would provide reassurance to shareholders and clients as regards their relationship with the Bank.