ATM machines are used by millions of consumers each day. Yet people who use teller machines often know little about them. They simply use the machines due to the convenience that ATMs offer.
ATMs allow consumers to obtain cash quickly and easily. In fact, most ATMs are accessible whenever a consumer desires to use them. Thus, they are used more frequently than local banks. Nevertheless, the history of the ATM indicates that the machine was not always popular.
What is an ATM?
An ATM machine is a automated, self-serve machine that permits banking customers to perform transactions automatically. “A T M” is actually an acronym for “automated teller machine.” The machines are designed to replace the function of a human bank teller.
Who Created the ATM machine?
Teller machines were invented by an American named Luther Simjian. He invented several other devices. However, he is best known for the automated teller machine.
When Was the ATM Machine Invented?
The ATM was invented in the 1930s. Most people of today believe the machine was invented much later in the century. Yet, that is not the case. The use of the ATM was not widespread in the 1930s, but the device was created during that period. The popularity of ATM machines did not increase until the 1970s.
Did the Consumers of the 1930s Use ATM machines?
Few banking customers actually used the first ATM. Simjian made an agreement with a bank in the New York area to allow the bank’s customers to use the machine on a trial basis. If the invention was deemed a success during the six-month trial, the bank owner would install the machine for a longer period.
The machine was placed in the foyer of the New York bank, and customers were allowed to access the machine at any time. Thus, consumers could receive cash even when the bank was closed. Simjian hoped that the convenience facilitated by the invention would cause many of the bank’s customers to embrace the new machine. Nonetheless, the consumers of the 1930s did not trust the automated machine. They felt more secure interacting with a human being. Thus, they continued to conduct banking business with a human teller. The ATM machine was avoided, and the bank owner discontinued its use at the end of the six-month trial period.
How Did the First ATM Work?
The first ATM machine utilized a voucher-based system. Bank customers could purchase vouchers from a teller during the bank’s normal hours of operation. Each voucher had a monetary value equal to their purchase price. When the voucher was inserted into the ATM machine, the machine would “read” the voucher and dispense cash to the customer. The cash amount matched that of the voucher’s purchase price.
How Did the First ATM Differ from ATMs of Today?
Unlike ATM machines of today, the first ATM machine did not communicate with banking computers. The vouchers used in the machines were purchased using cash that had already been withdrawn from the bank account of the ATM customer. In addition, the first ATM could only perform cash withdrawals. Modern ATMs use ATM cards and can perform multiple banking transactions, such as cash withdrawals, balance inquiries, deposits and balance transfers.