Korean company rules Russia’s ATM market
This is the first of a four-part series highlighting Hyosung Group’s global businesses. _ ED.
Hyosung TNS has taken the lion’s share of the Russian market for an automated teller machine (ATM) in just 10 years after the Seoul-based outfit first tapped into the country.
Hyosung TNS said Nov. 28 that it had won all of the Sberbank projects of replacing ATMs of the largest Russian lender with 14,000 branches across the nation.
Under the contract, Hyosung TNS plans to supply 54,000 ATMs over the next five years.
This means that Hyosung TNS has taken more than 70 percent of the market.
Hyosung said that the achievement was attributable to the group’s focus on technology and voice of customer (VOC), which Chairman Cho Hyun-joon has emphasized consistently.
“The answer is in the voice of the customer. We must listen even to our customers’ customers to grasp what they want,” Cho iterated.
In line with the management philosophy, Hyosung TNS has paid attention to the needs of banks, its primary customer as ATM users. Bills available at ATMs in Russia have diversified after the country issued new bank notes in 2017.
To satisfy customer needs, Hyosung TNS reinforced technologies on banknote classification by denomination and ATM security. Hyosung regards the preemptive step as a success factor of its tighter grip on the Russian market.
Hyosung TNS’s own cash recycling technology also worked. Cash recycling enables an ATM to accept banknotes from depositors and dispense them to customers who wish to take out cash.
The firm said that this technology is indispensable to raising the operational efficiency of an ATM and reducing cash replenishment costs as it integrates deposit and withdrawal devices into a single telling machine.
Chairman Cho has also pulled out all the stops to underpin Hyosung TNS’s ATM business.
He met with senior officials of Sberbank, major US bankers and high-ranking officials of India’s financial services industry to identify market opportunities.
Russian banks have implemented projects to replace all of their telling machines with cash recyclable ATMs since 2016 to cut operating costs.
Hyosung TNS has supplied such ATMs exclusively to the banks thanks to its competitive advantages _ its own cash recycling technology and long experience in security and operation services.