Automated teller machine
An Automated Teller Machine (ATM) is a computerized device that enables customers of financial institutions to perform various banking transactions without the need for human intervention. ATMs are a ubiquitous part of modern banking systems and provide convenient access to a wide range of financial services 24 hours a day, seven days a week. This wiki page explores the history, functionality, security, and impact of ATMs on the banking industry and society.[1]
History
The Automated Teller Machine (ATM) was conceived in the late 1960s and evolved into a global financial convenience. The first ATM, using paper vouchers and PINs, was installed by Barclays in London in 1967. Plastic card-based ATMs, pioneered by Docutel in 1969, became prevalent, fostering ATM networks and interbank transactions in the 1970s. The 1980s marked international ATM expansion, while the 1990s introduced color screens and enhanced features. Security measures, like chip cards and encryption, were bolstered in the 2000s. The 2010s brought mobile and contactless payment integration, while the 2020s continued ATM innovation, ensuring these machines remain integral to global banking.[2]
Types
There are several types of ATMs, including:
- Bank ATMs: Operated by banks and typically located near or within bank branches.
- Off-site ATMs: Independently operated ATMs found in locations like shopping malls, gas stations, and convenience stores.
- Drive-Thru ATMs: Designed for use from a vehicle, allowing users to conduct transactions without leaving their cars.
- Mobile ATMs: These are often used at events and festivals to provide temporary banking services.
- White Label ATMs: Operated by non-bank entities but connected to a bank's network.
Impact
ATMs have had a profound impact on banking and society in general:[3]
- Convenience: ATMs provide 24/7 access to banking services, reducing the need for visiting physical bank branches.
- Cost Reduction: Banks have saved money by reducing the need for tellers to handle routine transactions.
- Financial Inclusion: ATMs have improved access to banking services, especially in remote areas with limited banking infrastructure.
- Cash Management: ATMs have facilitated the distribution and circulation of cash in the economy.
