4 minute read
Western Union’s foreign exchange services
DEALING WITH FOREIGN MARKETS
Western Union Business Solutions is a global leader of cross-border, cross-currency business payments, helping businesses of all sizes to navigate currency market volatility with greater confidence. Here, Nick Worthington outlines how Western Union Business Solutions can help those in the renewables sector to grow their global reach. We are all familiar with the name Western Union but can you provide an overview of your reach and services?
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NICK WORTHINGTON: For nearly 170 years, Western Union has been moving money across borders for families, businesses and communities. This has given us decades’ worth of insights, which go beyond just building a world class network and a currency portfolio that is second to none.
Our knowledge and experience can make payments quicker and smoother by providing market insights that enable customers to make informed decisions that put them firmly in control.
Can you outline the business to business (B2B) service offered by Western Union?
NW: A depth of understanding is vital when payment needs become complex; it helps to work with dedicated experts in foreign exchange and overseas banking systems.
To that end, Western Union Business Solutions equips businesses with the solutions they need to send, receive, and manage international payments. Broadly that means helping businesses that are importers and exporters deal with the ebb and flow of foreign currency.
Our Business Solutions’ digital platforms facilitate efficient and streamlined international payments on a global scale.
Solutions include locking in exchange rates on invoices and credit notes from foreign associates for up to 240 days or around eight months.
We also provide the support, market insight, and risk management services to help businesses protect profits and manage their cash flow.
It is a great source of pride for us to be able to assist businesses on their growth journey through solid, reliable service, driving efficiencies and saving our clients’ money on their foreign exchange dealings. To what extent is WU Business Solutions assisting the renewable energy sector?
NW: Much of the hardware and technology involved in the renewables industry – batteries and solar panels – is from China (also Europe) and there are significant levels of importation of raw materials and consequentially we are helping more and more businesses involved in smart energy deal with currency fluctuations.
To date our focus has been on the solar sector because our existing client base includes many importers of solar panels and related products, however we are considering how we can assist businesses in other areas of the renewables’ sector.
Overall, we are committed to helping businesses that are looking to do things differently and build a better future for all of us, and our
partnership with the Smart Energy Council is helping us get our message out to different audiences. What specialised teams and staffing levels do you operate in Australia?
NW: Western Union Business Solutions has a dedicated client facing team in Australia that is made up of business development, account managers and client service consultants.
Our teams recognise that uncertainty is always bad news, but especially when dealing with foreign currency transactions. As mentioned, negotiated prices and calculated profits can be significantly impacted if the exchange rate moves adversely on the day a payment is going through.
One of the best ways to protect bottom-line profits from currency fluctuations is to have a hedging strategy.
Our Hedging Team works closely with the Dealing Team, connecting with customers and getting to know their business and currency needs. As specialists they can explain the complexities of creating a risk strategy, and the impact of fluctuations in the markets. They can help uncover and close hedging opportunities where there is a need to protect. What are the benefits of dealing with WU Business Solutions over one of the main banks? Are you more competitive, nimble, streamlined?
NW: We can tailor our offering depending on the needs and wants of a client’s business. Our online platform is powerful and intuitive and a great tool for clients wanting to self-serve and manage currency movement online.
We also appreciate that many of our clients like to have the option to pick up the phone and speak to a person so we also have a dedicated account manager who can provide market insights and help clients build an FX (foreign exchange) strategy.
Western Union invests significantly in compliance measures and fraud monitoring technology; can you outline trends and developments in this area?
NW: As technology evolves, the methods used by fraudsters evolve as well, and the regulations safeguarding the financial services industry continue to increase. Western Union’s Security and Fraud Investigation Team comprises a network of experienced professionals around the globe who understand the laws and regulations relevant to our business. They keep abreast of the latest developments as they happen, reacting quickly and locally.
https://business.westernunion.com/en-au/ For more information or advice contact Nick Worthington, Senior Partnerships Associate Business Solutions - Australia & New Zealand, 0410 045 598.
