With the realization that clients’ needs are complex and may require solutions that cut across multiple practice areas in banking, MUFG established Working Capital Solutions (WCS)—a cross-disciplinary group comprising senior bankers with varied specializations.
WCS functions as a think tank that brings together subject matter experts from six domains whose mission is to identify a client’s objectives, understand its challenges, evaluate potential solutions and tailor a holistic, multifaceted strategy addressing its needs.
WCS consists of lead bankers in asset-based finance, trade finance, commodity and structured trade finance, securitized products, supply chain finance and transaction banking. The solutions WCS pursues can span two or more of these practice areas and commonly involve the following activities:
- Identifying objectives:
- Process improvement
- Lowering interest-rate costs
- Improved leverage
- Incremental liquidity
- Shorter cash-conversion cycles
- Addressing challenges:
- System capabilities
- A/P and A/R processes and terms
- Resource availability
- Supplier-buyer relationships
- Evaluating potential solutions:
- Comprehensive payable and receivable solutions
- Liquidity solutions
- Reporting and analytics
- Implementing a holistic approach:
- Identifying key stakeholders
- Establishing key performance indicators (KPIs) and accountability
- Executing a working capital solution
