ATM services have been around for many decades.   Actually, only seniors would be able to recall the days when ATMS were not around.  Everybody else just aboutgrew up with the technology, including Baby Boomers.  This is because the technology was in place even in the 1960s.  Granted, back then the automated teller machines were very primitive, but they were still convenient.  With the advent of this technology, banking customers no longer needed to walk inside to obtain their money.

ATMs in the early days

Decades before ATMs became widespread, several lesser-known machines were installed at larger banking institutions.  While they do not meet today’s definition of ATMs, they capitalized on the very same kind of idea.  The best examples include the examples below:

• Bankography – It was actually installed at some stage in 1960 in NYC

• Cash Dispenser – It was used in London during 1967

• Card Eating Machine – It was also employed in London during 1960

The main purpose of these machines was to give consumers a new way of completing certain transactions.   The Bankograph allowed customers to pay for utility bills without having the aid of tellers.  The device even provided paper confirmation.  Cash Dispenser took things on a whole new level, though customers had to purchase vouchers before using the machine.   The machine that dubbed itself a “Card Eater” had exactly the same trouble, except customers would purchase cards instead of vouchers.  In both cases, one would need to go inside to buy these items.

The Next Generation

In 1969, automated teller machines began taking on a more modern face.   Companies created special cards that could be utilized in the machine… cards that did not have to be purchased many times.  Customers loved this concept, which is why banks began making use of them within their promotional initiatives.  In turn, ATM cards began to flourish.  Their developments happened in the following order:

• Magnetic coding

• Increased ad campaigns

• The emerging of Docutel (who acquired a patent for their technology)

The Docutel is considered the first “official” ATM machine.  This is mainly because it used the magnetic stripes that define ATM cards today.   In addition, it changed how banks would market their services.   Once Chemical Bank acquired Docutel’s machine, they started advertising how their chain allowed people to make transactions beyond normal business hours.  Other banks would follow suit, though there were a few that went with other manufacturers.  They include:

• Diebold

• Fujitsu

Of course, it would still take a couple of years before ATM services became mainstream.   Banks were hesitant to use them simply because they were afraid customers wouldn’t trust a machine with their money.  Fortunately, that did not stop the ATM’s growth.   Additional machines would advance the technology.  They include:

• Total Teller, created in 1971 (by Docutel)

• Proliferation, created in 1973 (by Diebold)

• Online ATM machines in 1974

Summary

In the 70s and beyond, ATMs services were no more an idea of fantasy.  People not only used them, they also felt that the systems were far more convenient and trustworthy than human tellers.   This attitude still continues, as thousands of ATM transactions are conducted each day.

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Filed under: Global Finance • Personal Finance

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