Human Experience Elevated

The Federal Reserve’s Reports on payment trends gave the banking industry food for thought on the ways consumers and businesses pay today.

Technology advances in the finance industry continue to evolve the methods and ways people pay. Banking is at the forefront of these changes, grappling with emerging trends and technologies reshaping the payment landscape. The Federal Reserve’s recent reports on consumer and business spending choices reveal significant shifts in payment methods.

The Federal Reserve Payments Study finding reveal a slight decline in cash payments, accounting for 18% of all transactions. On-person cash holdings witnessed a $5 increase from 2021, with the average consumer carrying $73. Store-of-value holdings also saw a modest increase, with a typical value of $418. In contrast, the share of in-person and P2P payments held steady at 81%.

What do these changes mean for the banking industry? How are consumers and businesses adapting to new payment technologies, and what role should financial institutions play in this evolving ecosystem?

In the latest episode of Banking Experiences Elevated, a Hyosung Innovue podcast, host Daniel J. Litwin engages with William Budde, VP of Banking Strategy and Solutions at Hyosung Innovue, to delve into these pressing questions. The discussion revolves around the Federal Reserve's reports on payment trends, the implications for financial institutions, and the strategic responses required to navigate this dynamic landscape.

Key points of Litwin and Budde’s conversation include:

• The rapid growth of non-cash payments in the US, outpacing any previous measurement period since 2000.

• The surprising resilience of check usage, despite an overall decline, with the average value of check payments increasing substantially.

• The role of debit cards in the payment ecosystem, accounting for over half of the payments in the study.

William Budde is an innovative leader in financial services with a proven history of creating and implementing transformational change. Executive with comprehensive experience in Product Development, Process Design, Vendor Management and Negotiation, and Systems Development. Diverse background within financial services covering insurance and banking systems and experience in Technical Architecture, Functional Design and Development, Testing, and Data Architecture on multiple technology platforms as well as Business Strategy Definition, Process Design, Optimization, and Program Management.

In this episode of Human Experience Elevated, host Daniel Litwin talks with Bill Budde, Vice President of Banking Strategy and Solutions at Hyosung, about the evolving threat of ATM card skimming. They discuss how skimming impacts both banks and consumers, and the importance of adopting advanced ATM security measures, new card technologies, and operational strategies to mitigate fraud. The conversation also covers proactive and reactive defenses, including the gradual elimination of magnetic stripes on cards and enhancing fraud detection mechanisms, to better secure financial transactions and maintain customer trust.

In this episode of Human Experience Elevated the host Daniel Litwin and Bill Budde, VP of Banking Strategy and Solutions at Hyosung, explore the ever-changing landscape of consumer payment choices, informed by insights from the Federal Reserve's Diary of Consumer Payment Choice.

From the rise in card payments to the evolving role of cash and the rapid decline of checks, Bill and Daniel break down key trends shaping the payments ecosystem. Discover how financial institutions and businesses can adapt to consumer behaviors, optimize cash automation, and navigate the delicate balance between digital and traditional payment methods.

Tune in to learn how Hyosung is helping financial institutions stay ahead of payment trends and enhance customer experience. Whether you’re curious about cash automation, card usage, or the future of payments, this episode offers essential insights for industry professionals.

This episode is part of the "Banking Experiences Elevated" series by Hyosung Innovue.

The host, Daniel Litwin is joined by Bill Budde, Vice President, Banking Strategy & Solutions at Hyosung Innovue. The focus of today's podcast is on the dynamic evolutions of bank branch operating models and how banks have shifted their operations over the past decade, emphasizing customer experience.

Traditional vs. Modern Banking:

a. There's a comparison between traditional bank setups and modern bank branches. The traditional setup is likened to a grocery store where customers have to walk past everything to get to the main item they came for (e.g., the milk at the back of the store). In the context of banking, this refers to the teller line at the back of the branch, which customers often visited for transactions. This design was intentional to provide opportunities for richer banking interactions.

b. Over time, technology has played a significant role in changing the design and operations of bank branches.

Value Proposition:

a. Modern banking aims to bring value to both customers and the bank. When both parties benefit, it's seen as a win-win situation.

b. The emphasis is on putting the customer experience first, as a satisfied customer is deemed a success for the bank.

Cashless & Touchless Banking:

a. There's a discussion on the potential of cashless or touchless banking becoming a standard in the industry. While it's seen as valuable, it might not become predominant immediately.

Automation & Self-Service:

a. The conversation touches on the possibility of automating complex transactions that were previously thought to be manual. This includes tasks like bill payments, withdrawals, and deposits. The idea is to envision a full-service location for banking customers where most transactions can be automated, and bankers are present for more in-depth conversations.

b. The concept of "micro branches" is introduced, where a branch could consist of just a couple of offices and ATMs, streamlining operations.

Join Host Daniel Litwin and Michael Graham, SVP Chief Product Officer at Hyosung Innovue and Kara Myers, VP of New Business Sales at Hyosung Innovue.

Picture this: You walk into a store, and instead of the usual hustle and bustle at the checkout counters, you experience a seamless, frictionless, and remarkably efficient self-service journey. Self-service checkout is the now and the standard in most retail experiences we have as customers. But there's always room for improvement in that ecosystem, whether that's the technology itself, or more importantly, the customer journey and experience that technology supports.

We're not just talking about the future; we're building it. Starting this August, Hyosung Innovue rolled out a game-changing suite of self-order and self-checkout solutions, the Jetcheck Series, which we hope to turn into the gold standard in self-service retail technology.

We're going to dig into the various products in our Jetcheck Series, what they offer and how they do it, but also connect the dots between trends shaping self-service needs and tech today, and how Jetcheck kiosks support that ecosystem.

So, whether you're a retailer looking to elevate your customer experience, or a tech enthusiast eager to know what's next in the world of self-service, buckle up!

The Hyosung podcast, titled "Self Order and Checkout Experiences," is the first episode of a new podcast series under the Hyosung Innovue brand. The podcast focuses on discussing trends, technologies, and solutions related to self-ordering and checkout experiences in the retail industry. The podcast introduces Hyosung Innovue's new division, Hospitality and Commerce, and their suite of products called the Jet Check series. The episode highlights the goal of providing seamless, frictionless, and efficient self-service journeys for customers in brick-and-mortar stores. The podcast also mentions the importance of customer experience and the evolving self-service ecosystem. Overall, the podcast aims to explore the current and future state of self-ordering and checkout experiences and how Hyosung Innovue is contributing to this space.

“The start of video banking was on the transactional side with tellers. That was actually my father, Gene Pranger, that pioneered that technology. So, he actually created what was called the personal teller machine, which actually brought tellers to devices and allowed them to take control of that device to enhance the capabilities and transactions that they could do,” said Tim Pranger, VP of Strategy and Solution Consulting for POPi/o. The Utah-based company offers automated chatbot technology, video support from an in-branch specialist, and collaboration tools such as co-browse, video check deposit, identity verification, document sharing, and e-sign.

According to The Next Web, video banking refers to any banking services offered with video representations to help customers. What started as transactional has expanded into so much more. Many industries experienced rapid tech growth because of covid, and banking technology is no exception.

“The latest evolution is really kind of crossing that bridge out of the transactional and into the relationship-style interactions, where you’re talking about opening a new account or talking about expanding your relationship with the bank that has really started to create a new place for video to play a part,” said Bill Budde, VP of Banking Strategy and Solutions, Hyosung.

Video is becoming an essential part of banking. We’re familiar with the “Great Resignation” and shrinking physical locations. Factors like this are driving demand for expanding video banking. “Now the trouble becomes ‘how do I deliver different solutions to those same areas that are a third of the size, and I can’t staff?’” said Pranger. Though the landscape is changing, expectations remain the same. “Customers expect to be able to walk into a bank and have access to the expertise that bank provides. Regardless of the structure they walked into. They expect to be able to get financial advice if they need it,” said Budde.

Robust video solutions allow banks to conduct businesses with more efficiency. It offers various solutions and flexibility for customers. “By the nature of it, you have to have a rich set of collaboration tools to go along with that video,” said Budde. As fintech offerings are available more regularly, video banking allows traditional institutions to keep up. “It creates a best of both worlds situation, where we combine that technology and allows the bank to put their best foot forward to their customers in a seamless integrated experience,” said Budde. Visit our website at https://hyosungamericas.com/podcasts. Listen on Spotify, Apple Music, or wherever you get your podcasts.

The advent of the pandemic changed a plethora of industries. While some fell behind, others evolved to meet the changes. Keith Lennard, an industry expert for over 12 years and the VP and Head of Software at Hyosung, knows all too well how adverse events might positively impact an industry. Specifically in this case, he know show the pandemic has accelerated movements in banking. Host Tyler Kern has a candid discussion with Lennard about the changes in the banking industry and how self-service banking is evolving the game.

Before the pandemic, changes in the industry were slow-going while still moving towards mobile utilities. However, the pandemic rapidly accelerated this growth, “There has been this kind of evolution over the last couple of years of how do you really change access to money? How do you change the banking experience?” said Lennard.

Hyosung presents a different but practical solution using evolving self-service technology. The goal isn’t just to share this knowledge but to allow others the ability to connect with their customers through self-service banking.

With personal experiences changing and practical convenience becoming an astute need for many, Lennard notes this convenience shouldn’t stop there, “expectations have changed...the consumers want to bank on their terms.”

Hyosung moves from physical to digital assets while continuing to meet and exceed customer expectations around the clock. Capitalizing on the “wealth of knowledge built into the self-service device,” self-service banking technology can meet and exceed user experiences, all while providing a solid ROI that ensures customers continue to feel appreciated.

And adoption of this technology isn’t difficult when you have the right partners. That’s why Hyosung is here to help you get started. “We’ve had a lot of success doing these integrations with our customers,” said Lennard.

To learn more, visit hyosung.com or tune into Hyosung’s Inspired Banking Series.

Drive-up banking has been around for years, and most use it frequently when they need a simple banking transaction fulfilled. Daniel Litwin sits down with Bill Budde, the VP of Banking Strategy and Solutions at Hyosung, to discuss evolving trends and technology in drive-up banking.

As technology develops and banking adopts new technologies, we’ll see the banking workforce meet higher efficiency, increasing service hours and improving customer experience. As banks eliminate outdated and hard-to-service technology like VAT, interactions at the banks will become quicker and more enjoyable for individuals.

Ideal use cases include expanding automation both on personal devices and at ATMs. Current consumers are already used to a certain amount of automation, including checking their balance online or on a machine, but enhancing that technology will allow consumers to more easily withdraw from an existing line of credit or even open a new line of credit.

Simply depositing a check or transferring funds from one account to another has become more convenient, however, Budde expresses “the biggest thing you see is the basic transactional stuff customers are [more and more] choosing to self serve… an in-person interaction is centered around the deeper style of needs for customers like opening a new line of credit or fulfilling a mortgage or getting an auto loan. Those are a bigger impact financially on a person’s life.” The more complex banking interactions require individuals or some fulfillment role.

With video calls, an ATM could ultimately be used as a portal to the entire operation of the bank, including more complex financial relationships. A remote individual can check the physical requirements that those transactions would need. Or, if an individual is required for a question, they can be brought into the interaction. The human touchpoint will be more centralized and address more locations.

Overall, convenience has to be flexible based on the customers' needs, but it has its benefits for bank tellers too. There is a trend toward digital-first banking. This trend has grown with customer behavior changes during the pandemic. There has been a drive to automate repetitive tasks to allow employees to focus on customer service and relationship building. Automating these tasks lessens stress and caters to a more engaging work environment. Keeping up with technology will help banks attract and retain employees.

Hyosung is turning heads - again! Keeping new trends in mind, host Tyler Kern sat down with Michael Graham, VP of Retail Strategy & Solutions with Hyosung, to discuss the features of the new products coming to market and the trends influencing their production.

Excitement is in the air at Hyosung as they bring to market four new products. “This is not necessarily a reaction or a response. This is more about Hyosung listening to the market, understanding what’s happening in the market but also paying attention to what customers are saying and telling us, kind of reading between the lines,” described Graham, “...These four new products really represent a lot of the trends and impacts that are happening in the market.”

The first medical program introducing the legitimacy of cannabis for treatment was in 1996. Fast-forward to today’s market for cannabis, there is roughly “8000 cannabis industries in the United States”, however, the industry is still operating “in the shadows, little bit of a grey area,” said Ryan Loebs, Director of TCR products for Hyosung America.

Loebs continues stating that “A lot of the big credit card providers, VISA, MasterCard, AMEX, have to play by the rules.” Banking is on the sidelines with this industry as well, limiting customers of these businesses to only using cash as a form of payment. This creates a whole other entity of problems with secure cash management as logistics with physical dollars, USD, having to be counted, secured, moved, and not under a traditional CIT channel.

“Hyosung’s DNA is in banking and retail,” said Mr. Loebs, and with Hyosung’s business model, they have leading capabilities for providing consultant services for these businesses, cash management solutions and providing current and next generation technology to help manage such a massive trail of cash and payments. Loebs believes that not one solution can be suitable for everybody, contacting Hyosung’s consultant group is the first big step in evaluating on site, the first-hand challenges these businesses face and providing solutions from there.

“This is not the way it’s going to be forever, the industry will evolve,” said Mr. Loebs. In terms of their strategic plans, offering provisional credit, credit card payments, POS integration and digital, crypto solutions may be the next steps. As of current, their innovative Back Office Cash Management Automation technology serves the purpose of securely moving cash from the front to the back of the house in a large safe with cash recycler capabilities, and it is digital and physically secure."