An Overview of ATMs

Many people may find it hard to remember a time when they conducted most of their banking transactions with paper checks, withdrawal slips, and deposit tickets. For those who have literally grown up with electronic technology, ATM services have likely always been a part of their lives. Going to the bank for many people, in fact, rarely refers to actually stepping inside the financial institution and interacting with a teller, but in fact means using automated teller machines. Financial institutions completely without ATMs would be anomalies, as full service now includes comprehensive ATM services.

The ATM Predecessors

Long before the current network system that most people are familiar with, ATM predecessors were installed at some of the larger banks in various locations around the world. While not true automated teller machines, they nonetheless paved the way for the devices and ATM services currently used. Highlights of ATM history include:

• The Bankograph, installed in 1960 in First National City Bank, New York City
• A Cash Dispenser, installed in 1967 in Barclays, London
• A Card-Eating Machine, installed in 1968 in Barclays, London

The idea behind the aforementioned devices was to provide another way to complete at least some routine transactions. The Bankograph was conceived as a way for people to pay their utility bills and receive a paper confirmation without interacting with a teller. The cash dispenser, however, required the use of paper vouchers that customers had to buy from bank tellers before using the machine. Likewise, the card-eating machine left customers needing teller assistance to get new cards for their next transactions.

The Next Wave

By 1969, ATM services were increasingly moving in the direction that most people who use ATMs are accustomed to. This included changes in the plastic cards and new ways of advertising ATM services. The next round of developments included:

• Magnetically encoded ATM cards
• Ad campaigns focusing on ATM services
• Patent applications by Docutel

While many people debate when the first true ATMs came into existence, the Docutel machine installed at Chemical Bank in New York was the first to use plastic cards with the familiar magnetic stripes. Perhaps not surprisingly, Chemical Bank soon began marketing this new addition as a means of providing banking services well beyond traditional business hours. Despite the other manufacturers that looked to provide ATM services, Docutel is widely considered to be the inventor of the automated teller machine, as they were the first to apply for an ATM patent. Other early manufacturers included:

• Diebold
• Fujitsu

The Docutel machine, developed by Donald C. Wetzel, was not well received initially, as bankers worried about the higher annual cost of operating such devices. Bankers worried that their customers would not be comfortable allowing a machine to manipulate their money as well. In spite of these valid concerns, ATM services were advanced by:

• The Total Teller, unveiled by Docutel  in 1971
• Proliferation by Docutel and Diebold in 1973
• On-line ATMs introduced in 1974

A Final Word on ATM Services

Improved production techniques, lower costs, and the potential to provide innovative ATM services saw a rapid increase in the manufacture and sale of ATMs throughout the 1970s, leading to the highly serviceable machines consumers are now used to. Any financial institution looking to grow their business and provide superior customer service would likely benefit from working with a professional ATM provider like this website, to ensure that their ATM services meet consumer demand.