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History of ATM |
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The history of ATM can be traced back to the 1960s, when the first ATM machine was invented by Scot John Shepherd-Barron and used by Barclays Bank in 1967. However, while Shepherd-Barron has the major claim to fame, there have been many other individuals who have also invented some version of the ATM. The machine itself has evolved over the years, with the earlier versions restricted to only one or few banking functions. There has been much debate, however, on who invented the first early versions of Automated Teller Machine. But the history of ATM can be visibly traced back to the year of 1967.
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In 1939, a rudimentary cash dispenser was invented by Luther George Simijian and established by the City Bank of New York. However, the machine did not work much and had to be removed within six months of putting up the machine. The early versions of the ATM were restricted to cash withdrawal only. In the 1967 model, patented by Shepherd-Barron, the plastic cards did not exist and instead vouchers with a strip of radioactive substance was used for withdrawing cash. Consequently, the vouchers were matched with a particular personal pin code used by the bank to identify the customer. The ATM was inaugurated by renowned British actor, Reg Varney. The personal identification number was initially a six numbered password, and was later changed to a four numbered password. However, this automated teller machine was very different from the modern day teller machines, which is based on an electronic system between the different branches of the bank. Thus, the history of ATM has seen many changes over the span of 25 years since 1939.
Another co-patent to the invention of the ATM was Don Wetzel, the Vice President of Product Planning at Docutel. While the conceptualization began in 1968, the patent was issued only in 1973. This cash dispenser was first used by the New York based bank, namely, the Chemical Bank. As was the case with the ATMs of during those years, they were hardly a multi-functional unit. Moreover, they were not based on any electronic system. Hence, the debit cards, distinct from credit cards, were given to only selected clients with good track records. The first ATM cards, with magnetic strips were developed by three individuals, namely Don Wetzel, Tom Barnes and George Chastain. While there were many developments in the history of ATM, the service itself took a stronghold only in the 1970s. Today, the ATM service has become indispensable to our modern day lives.
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