Photo of Maggie Wong, OCBC collects the award on behalf of Wellvin Chemical Limited.
William Wong
Director
Wellvin Chemical Limited was established in 2013. With over 20 years’ experience in the plastics industry, the company works closely with chemical companies in Taiwan, including Formosa Chemicals and Fibre Corporation (FCFC).
in partnership with
The challenge
Wellvin Chemical Ltd faced significant challenges in managing its foreign exchange (FX) requirements. As an importer of goods from Hong Kong and an exporter to both local and overseas markets, the company needed to conduct regular FX transactions to facilitate payments and convert sales proceeds into the local currency. However, the existing FX transaction process posed several pain points:
Lack of transparency – when conducting FX transactions through online platforms, Wellvin was often unable to know the exact exchange rate before execution, leading to uncertainty and potentially unfavourable rates.
Exchange rate fluctuation risks – the company needed the ability to reserve a contract FX rate to be executed later, allowing it to mitigate the risks associated with exchange rate fluctuations. Previously, this required assistance from a relationship manager, which was not always possible.
Time-consuming manual processes – the company’s director had to frequently engage with the relationship manager to quote and reserve favourable exchange rates, distracting him from working on core business activities.
The solution
To address these challenges, the bank, OCBC, introduced a comprehensive online FX solution tailored to the specific needs of Wellvin. The key features of this solution include:
Transparency in pricing – the online platform provides Wellvin with complete visibility into the exchange rates before executing any FX transactions, ensuring the company is aware of the exact rates and can make informed decisions.
Contract FX rate reservation – the solution enables Wellvin to self-serve and reserve a contract FX rate for future execution, allowing it to lock-in favourable rates and effectively manage exchange rate risks.
Streamlined transactions – the user-friendly online platform empowers the company’s director and his team to independently conduct spot FX transactions with settlement timelines ranging from T+O to T+2, as well as forward FX contracts from T+O to T+2, without the need for constant relationship manager involvement.
The bank’s online FX solution was seamlessly implemented and integrated with Wellvin’s existing systems, ensuring a smooth transition and minimal disruption to daily operations.
“Winning the Best Foreign Exchange Solution at the Adam Smith Awards Asia is a remarkable honour for Wellvin Chemical Limited. This achievement reflects our dedication to innovation and excellence in managing our foreign exchange needs. We extend our heartfelt gratitude to OCBC for their tailored online FX solution which has transformed our operations by providing transparency, efficiency and the ability to mitigate risks. Together we are setting new benchmarks in corporate management, empowering us to focus on what truly matters-driving our business forward and contributing to a sustainable future.”
William Wong, Director
Best practice and innovation
OCBC’s FX online service, launched in January 2024, exemplifies the integration of best practices and innovation to cater to the evolving FX needs of Wellvin.
The FX online platform provides real-time access to live streaming FX rates, empowering Wellvin with complete transparency and the ability to make informed, prompt decisions when executing spot FX transactions with settlement timelines ranging from T+O to T+2. Currently the service supports the exchange of 15 major currencies.
Beyond spot transactions, the FX solution also enables clients to reserve a specific exchange rate for future execution through optional forward FX contracts from T+O to T+2. This feature helps Wellvin mitigate risks associated with FX fluctuations and better manage its cash flow.
The seamless integration of FX Online within the bank’s digital business banking platform further demonstrates the bank’s commitment to innovation. By providing a self-serve platform for FX management, Wellvin is empowered to efficiently execute same-day conversion contracts and focus on its core business activities, rather than dedicating valuable time to managing exchange rate risks.
The adoption of this solution by Wellvin since February 2024 is a testament to the user-friendly nature and transformative impact of this solution. By addressing its key pain points and delivering a comprehensive FX management platform, Wellvin has elevated the standard of best practices in the industry and set a new benchmark for innovation in corporate cash management.
Key benefits
Cost savings.
Number of banking partners/bank accounts reduced.
Process efficiencies.
Increased automation.
Risk mitigated.
Improved visibility.
Errors reduced.
Manual intervention reduced.
The Adam Smith Awards Asia are the industry benchmark for best practice and innovation in corporate treasury. The 2024 awards attracted 406 nominations. To find out more please visit treasurytoday.com/adam-smith-awards-asia
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