RBC creates unified global transaction banking unit

Royal Bank of Canada has created a unified Global Transaction Banking business, combining transaction banking operations from Commercial Banking and Capital Markets under shared leadership.

The move brings together the bank's transaction banking activities in Canada and the US under a single strategy and management structure. The new business is designed to connect relationship coverage, product teams, technology and execution across existing operations.

Sean Amato-Gauci, Group Head, Commercial Banking, and Derek Neldner, Chief Executive Officer and Group Head, RBC Capital Markets, will jointly lead the business as Co-Heads of Global Transaction Banking. They will oversee the bank's transaction banking operations across client segments.

RBC also named Kartik Kaushik as Head, Global Transaction Banking - Product, Platforms and Solutions, and Michael Klopchic as Head, Global Transaction Banking - Client Coverage. Both will report to Amato-Gauci and Neldner.

Kaushik will oversee product strategy, platform delivery and innovation across the division. Klopchic will lead client coverage, sales execution and go-to-market efforts.

Single structure

The reorganisation combines activities that had previously been spread across different parts of the bank, including cash management services in Canada and the US, as well as foreign exchange, payments, trade finance and liquidity management.

Two digital platforms sit within the expanded business. RBC Clear serves cash management clients in the US, while RBC Edge serves clients in Canada.

The new structure will support transaction banking services across RBC without changing its financial reporting. Results from the business will continue to appear within the bank's existing reporting segments.

Transaction banking has become a growing focus for large lenders seeking more operating deposits and fee income from corporate clients. Banks are trying to deepen relationships with companies that need cross-border payments, working capital support and cash management tools.

RBC said the unit is central to its goal of generating new deposits to support its next phase of growth. It also highlighted its position in Canada, where it said it has the country's largest wholesale deposit portfolio and leading payments franchise, while pointing to growth momentum in the US.

Cross-border push

The new structure reflects a broader industry effort to present treasury, payments and liquidity services through a more unified client model, especially for companies operating in more than one market. For banks with both commercial and investment banking operations, transaction banking can sit at the intersection of day-to-day corporate banking and broader capital markets relationships.

By placing the business under joint leadership from Commercial Banking and Capital Markets, RBC is linking teams that often serve overlapping client needs. That could help the bank offer a more consistent approach to corporate clients that use several parts of RBC for funding, foreign exchange, payments and operational banking services.

RBC serves more than 19 million clients in Canada, the US and 27 other countries. The bank has more than 101,000 employees globally.

Dave McKay, President and Chief Executive Officer of RBC, said the move reflects how the bank wants to present its services to clients across markets.

"Being more globally connected isn't just about where we operate; it's about how we bring the full strength of RBC to our clients," McKay said. "For businesses navigating a more complex economy, that means being a trusted partner who understands both local nuances and the global picture -- helping them move money, manage liquidity and risk, and operate seamlessly on an international basis."