History of ATMs

What is an Automatic Teller Machine (ATM)?

An ATM, better known as an automated teller machine, is a specialized computer or machine that makes it convenient for bank account holders to manage their money. It allows them to check their account balances, withdraw or deposit money, transfer money from one account to another, print a statement of account transactions and even make donations. By inserting an ATM or debit card into the machine and entering a Personal Identification Number (PIN), the above services can be accessed 24 hours a day, 7 days a week.

Summary

• An automated teller machine (ATM) is a specialized computer or machine that allows bank account holders to check their account balances, withdraw or deposit money, transfer money from one account to another, print a statement of transactions, and even donations
• The first ATM was installed in June 1967 in a street of Enfield, London, at a branch of Barclays Bank, credited to a British inventor named John Shepherd-Barron.
• The social context in different countries in the 1960s and 1970s played a critical role in promoting the ATM cause. His arrival revolutionized the field of banking and changed the how banks interacted with their customers.

History of ATMs

In the 1960s, various teams around the world were working independently to devise a method for withdraw cash from a bank outside business hours, and of course, without committing a crime. The schedule for the arrival and dissemination of the ATM is provided below:

• In 1960, an American named Luther George Simjian invented the bankograph, a machine that allowed customers to deposit cash and checks into it.
• The first ATM was installed in June 1967 on a street in Enfield, London, at a branch of Barclays bank. Still British inventor named John Shepherd-Barron credited with its invention. The machine allowed customers to withdraw a maximum of GBP 10 at a time.
• In the US, Donald Wetzel, an engineer from Dallas, was the first to implement the ATM. The first ATM in the US was installed in September 1969 at Chemical Bank's Rockville Center branch in New York with the motto: "On September 2, our banks will open at 9 am and will never close again«.
• In 1970, a British engineer, James Goodfellow, proposed the concept of a personal identification number (PIN), which automated verification of customer identity, thus marking a milestone in the growth of self-service banking.
• The United States witnessed a huge increase in the number of ATMs in 1977 when Citibank pledged more than $100 million for the installation of the machines throughout New York City. ATM usage increased 20% when a snowstorm forced all banks in the city to close their branches for days.
• In 1977, National Cash Register, a US software and technology company, released the NCR Model 770, an easy-to-operate ATM that allowed banks to offer services 24 hours a day, 7 days a week. The newer model (5070 ATM) released in the early 1980s proved to be more reliable, flexible, and customer-friendly.
• In 1984, the number of ATMs installed worldwide was 100.000.
• As of 2018, there were more than three million ATMs operating machines all over the world. According to the consultant Retail Banking Research , that number is projected to have surpassed four million by 2021.
• The first decade of the century XXI saw an increase in the number of ATM fraud via malicious software or sophisticated technologies such as skimming devices. To stay one step ahead, banks developed software that could detect anomalies in transactional data that point to illegal activity.
• Although digital payment services are gaining popularity in the XNUMXst century, in most of the The world still prefers cash for transactions. ATMs, bank branches, mobile banking and internet banking are expected to complement each other in the foreseeable future.

Role of the social environment in the growth of ATMs

The social context in different countries in the 1960s and 1970s played a critical role in promoting the ATM cause.

• In the United Kingdom, workers' unions were gaining power and influence during that period. Banking unions were putting unprecedented pressure on banks to close on Saturdays. At the same time, “automation” was a buzzword that appealed to the masses and was thought to save time and labor costs. Automating the checkout process seemed to appease all concerned parties , satisfying customers and banking unions, and driving innovation in the banking industry.
• In the US, banks were met with the rattendance of your employees for their horrible hours of work. The push for ATMs was motivated by the need to shorten banking hours, reduce congestion at bank branches and reduce labor costs. The prospect of attracting more customers with shiny new gadgets attracted businessmen and opened the doors for them to increase their sales with loans and credit cards.
• In Chile, according to a CMF report, there are some 7.500 ATMs spread throughout the country.

The advent of ATMs revolutionized the field of banking and changed the way banks interacted with their customers. People began to identify with the bank brand, rather than the individual branch. The ATM amplified the ubiquitous nature of banking, where banking was not tied to a branch or a human being, was available 24/7, and was accessible through machines, and then through mobile phones and computers laptops.

If you are an ATM Network and you require support services or administration for ATM including routing and authorization of transactions, electronic data exchange, settlement, reports, network control, and card functionalities, contact our sales team at contacto@kvz.cl

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