Monthly Archives: July 2017

The ATM Celebrates Golden Anniversary

On June 27, the world’s first ATM, automated teller machine, was turned into gold to commemorate its 50th anniversary.

The ATM was jointly developed by inventor John Shepherd-Barron and De La Rue Instruments, a company specializing in printing newspapers, just over five decades ago.

So the story goes, the ATM was conceptualized after Barron arrived at his bank a minute too late one Saturday in 1965, leaving him without cash until the bank reopened on Monday morning. Extremely frustrated by this experience, Barron began thinking that getting cash should be as easy as getting a chocolate bar from a dispensing machine.  Consequently, two years later, the first ATM was opened at the branch of Barclays bank in Enfield, north London. This was the first of six cash dispensers commissioned by Barclays.

When the ATM first debuted in Enfield it made a huge splash in the media, sending many other European banks racing to debut their own. However, most consumers viewed these “cash machines,” eventually known as ATMs, as a cumbersome novelty. Predating the debit card, the original ATM required customers to insert a single-use paper voucher, which was mailed back to the customer to prevent fraud, and key in a four-digit code, we now call a PIN, to access their money.

America’s first ATM debuted at Chemical Bank in Rockville Center, New York on September 2, 1969. Although several inventors worked on the early versions of the cash dispensing machine in the U.S., Don Wetzel, an executive at Docutel, a Dallas company that developed automated baggage-handling equipment, is generally credited with the development of America’s modern ATM.

By the 1970s, with the introduction of the debit card, the ATM became more consumer-friendly, and began handling multiple functions, including providing customers with their account balances. By the mid-2000s, as ATMs began supporting check deposits, consumers began seeing what was once thought of as only a cash dispenser in a whole new light.

Today, ATMs have spread across the world, and people think nothing of walking out of their houses without a penny in their pocket. There are approximately 70,000 cash machines in the UK, 425,000 in the U.S., and an estimated three million across the globe. The world’s most northerly ATM is located in Longyearbyen, Svalbard, Norway and the most southerly is located at the McMurdo station at the South Pole.

However, with all the plastic in our pockets and the continued hype of mobile payments today, does the ATM, which Paul Volcker, chairman of the Federal Reserve under Presidents Carter and Reagan, once touted as “the only thing useful banks invented in 20 years,” have a future?

According to Raheel Ahmen, head of customer experience and channels at Barclays, the birthplace of the ATM, even though there’s been a huge uptake in digital banking and card payments, cash remains a crucial part of people’s day-to-day lives.

“Today, what consumers are asking for is to be able to bank wherever and whenever, and through different channels,” says Bernardo Batiz-Lazo, a professor of business history and bank management at Bangor University in Wales. “People are changing the way they consume in the same way that banks are trying to change the way they operate.”

What does this mean for the future of the ATM…and ultimately the consumer? According to the banking industry, it means ATMs will hurtle right along with us into the future, bringing a whole lot of new and exciting technology our way.

So, happy golden anniversary ATM, and here’s to another 50 years!