The ATM at 50: How it's changed consumerbehavior21 September 2017, by Ken Sweet

In this Wednesday, Aug. 30, 2017, photo, automatedteller machines are lined up during the manufacturingprocess at Diebold Nixdorf in Greensboro, N.C. With theexception of the vending machine, no piece oftechnology has done more to create the culture of "self-service" than the ATM. 2017 marks the 50th anniversaryof the ATM. (AP Photo/Gerry Broome)

An automated teller machine. The cash machine.In Britain, a cashpoint. ATMs, known for spittingout $20 bills (and imposing fees if you pick thewrong one), turn 50 years old this year. They'reubiquitous—and possibly still a necessity, despitethe big changes in how people pay for things.

It was a radical move when Barclays installed cashmachines in a London suburb in 1967. Theutilitarian machine gave fixed amounts of money,using special vouchers—the magnetic-striped ATMcard hadn't been invented yet. There was no wayfor a customer to transfer money betweenaccounts, and bank employees tabulated thetransactions manually at the end of each day.

As the ATMs became familiar, though, theychanged not only the banking industry but madepeople comfortable interacting with kiosks in

exchange for goods. Now that means getting movietickets and boarding passes, self-checkout atgrocery stores, and online shopping that bringsproducts to your door with a few clicks. All arebased on the idea that people can handle routinetransactions by themselves without a teller orcashier.

"The ATM tapped into that innate force in peoplethat gives gratification for doing a task on their ownand it grew from there," said Charles Kane, aprofessor at the MIT Sloan School of Management.

It was a radical concept at the time. The ATMwasn't the first self-service device—vendingmachines and the automat had been popularbefore. But those dispensed items people couldhold in their hand.

In this Wednesday, Aug. 30, 2017, photo, employeesStephen Cheek and Lashanda Mitchell stage automatedteller machines during the manufacturing process atDiebold Nixdorf in Greensboro, N.C. With the exceptionof the vending machine, no piece of technology has donemore to create the culture of "self-service" than the ATM.2017 marks the 50th anniversary of the ATM. (APPhoto/Gerry Broome)

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Bernardo Batiz-Lazo, a business professor andATM historian (yes, they exist!) at BangorUniversity in Britain, said early users of automatedtellers were often checking their balances twice:once to see how much was in their account, thenagain after withdrawing money to see if itregistered.

"They were popular, but it took a long time to slowlyconvince customers to learn about ATMs and usethem regularly," Batiz-Lazo said.

For the banking industry, ATMs meant banks couldbe in thousands of places at once, not just inbranches, and earn billions of dollars in fees fromnon-customers. Banks used to staff dozens oftellers at each branch to handle routinetransactions, now many staffers work on othertasks, like sales or account maintenance.

In this Wednesday, Aug. 30, 2017, photo, employeeBendu Charles stages an automated teller machineduring the manufacturing process at Diebold Nixdorf inGreensboro, N.C. With the exception of the vendingmachine, no piece of technology has done more to createthe culture of "self-service" than the ATM. 2017 marksthe 50th anniversary of the ATM. (AP Photo/GerryBroome)

Around the U.S. today are roughly 3 million cashmachines, according to the ATM IndustryAssociation. Most are actually not owned by banks,but by private companies that install them atconvenience stores, restaurants and bars in hopes

of grabbing customers who don't want to find a bankbranch.

The wide acceptance of the ATMs changed thetypes of cash Americans typically carry in thepocketbooks. Since ATMs became more widelyavailable in the early 1980s, the twenty-dollar billhas regularly been the second-most printed banknote each year by the Bureau of Engraving andPrinting. The first place spot is held by the $1 bill.

Even as people use cash less, and credit cards ormobile payments more often, the ATM isn't goinganywhere for a while. At least, that's what historiansand—unsurprisingly—the ATM industry says. DevonWatson, vice president at Diebold Nixdorf, theworld's largest manufacturer of ATMs, says 85percent of all transactions worldwide are still incash.

In this Wednesday, Aug. 30, 2017, photo, employeeMaria Edney moves an automated teller machine duringthe manufacturing process at Diebold Nixdorf inGreensboro, N.C. With the exception of the vendingmachine, no piece of technology has done more to createthe culture of "self-service" than the ATM. 2017 marksthe 50th anniversary of the ATM. (AP Photo/GerryBroome)

Newer ATMs have more functions than ever. Theyaccept check deposits, can transfer moneybetween accounts, show an account balance, pay acredit card or mortgage payment, or even sell you

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stamps. NCR, another major manufacturer of ATMs,say the latest models are also designed to act morelike smart devices. Kevin King of NCR says thatincludes "swipe, gesture, multi-touch."

And future ATMs will likely start selling products aswell. Have a checking account? The ATM will askyou whether you want to open a brokerageaccount. Much like tellers did.

In this Wednesday, Aug. 30, 2017, photo, employeeMaria Edney installs software onto an automated tellermachine during the manufacturing process at DieboldNixdorf in Greensboro, N.C. With the exception of thevending machine, no piece of technology has done moreto create the culture of "self-service" than the ATM. 2017marks the 50th anniversary of the ATM. (AP Photo/GerryBroome)

This Wednesday, Aug. 30, 2017, photo, shows anautomated teller machine keypad at Diebold Nixdorfwhere ATMs are manufactured, in Greensboro, N.C. Withthe exception of the vending machine, no piece oftechnology has done more to create the culture of "self-service" than the ATM. 2017 marks the 50th anniversaryof the ATM. (AP Photo/Gerry Broome)

In this Tuesday, Aug. 8, 2017, frame grab from video,NCR ATMs inch slowly forward on an assembly line, inColumbus, Ga. 2017 marks the 50th anniversary of theATM. Newer ATMs have more functions than ever. NCRsays the latest models are designed to act more likesmart devices with swiping and other features. (APPhoto/Marina Hutchinson)

In this Monday, Aug. 14, 2017, frame grab from video,NCR briefing center manager Ksenia Bocharovademonstrates dispute resolution on NCR's newest ATM,in Duluth, Ga. 2017 marks the 50th anniversary of theATM. Newer ATMs have more functions than ever. NCRsays the latest models are designed to act more likesmart devices with swiping and other features. (AP

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Photo/Marina Hutchinson)

In this Monday, Aug. 14, 2017, frame grab from video,NCR briefing center manager Ksenia Bocharovademonstrates the loan process on NCR's newest ATM, inDuluth, Ga. 2017 marks the 50th anniversary of the ATM.Newer ATMs have more functions than ever. NCR saysthe latest models are designed to act more like smartdevices with swiping and other features. (APPhoto/Marina Hutchinson)

In this Jan. 19, 1968, file photo, a woman puts hercomputer punch card into the slot of an automated tellermachine, outside a bank in central London. The first ATMwas installed in London in 1967, with John Shepherd-Barron being credited with inventing the machine. (APPhoto/File)

In this photo provided by NCR of an image from a 1974company announcement, a woman uses an automatedteller machine. 2017 marks the 50th anniversary of theATM. Newer ATMs have more functions than ever. NCRsays the latest models are designed to act more likesmart devices with swiping and other features. (Courtesyof NCR via AP)

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In this 1970s photo provided by NCR, a woman uses anautomated teller machine. 2017 marks the 50thanniversary of the ATM. Newer ATMs have morefunctions than ever. NCR says the latest models aredesigned to act more like smart devices with swiping andother features. (Courtesy of NCR via AP)

In this photo provided by NCR of an image used in a1978 annual report, a man uses an automated tellermachine. 2017 marks the 50th anniversary of the ATM.Newer ATMs have more functions than ever. NCR saysthe latest models are designed to act more like smartdevices with swiping and other features. (Courtesy ofNCR via AP)

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In this early 1980s photo provided by NCR, a man uses adrive-up automated teller machine. 2017 marks the 50thanniversary of the ATM. Newer ATMs have morefunctions than ever. NCR says the latest models aredesigned to act more like smart devices with swiping andother features. (Courtesy of NCR via AP)

In this 1986 photo provided by NCR, a man uses anautomated teller machine. 2017 marks the 50thanniversary of the ATM. Newer ATMs have morefunctions than ever. NCR says the latest models aredesigned to act more like smart devices with swiping andother features. (Courtesy of NCR via AP)

© 2017 The Associated Press. All rights reserved.

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APA citation: The ATM at 50: How it's changed consumer behavior (2017, September 21) retrieved 10October 2021 from https://phys.org/news/2017-09-atm-oddity-consumer-behavior.html

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