History Timeline Of ATM

1939

Bank automation started as early as 1939 with the invention of the ATM by Luther George Simjian (1905-1997) from Turkish origin.

Simjian came up with the idea of creating a hole-in-the-wall machine that would allow customers to make financial transactions. The idea met skepticism but he persuaded what is now Citicorp to give it a trial. After six months, the bank reported that there was little demand. "It seems the only people using the machines were a small number of prostitutes and gamblers who didn't want to deal with tellers face to face," wrote Simjian.

1960

ATM predecessor installed: New York's First National City Bank (now CitiBank) installs a Bankograph in several branch lobbies. The idea is for customers to pay utility bills and get receipts without having to see a teller.

1967

Cash dispensing machine at Barclay's Bank in London. June 27

On June 27 1967 De La Rue wins the race to unveil the first machine, drawing crowds to the unveiling.

The concept is developed by John Shepherd- Barron. He came up with a self-service machine which dispenses paper currency on a 24/7 basis. The first of this type of machines will be installed outside a north London branch of Barclays Bank in 1967.

It uses paper vouchers bought from tellers. The machine is called the De La Rue Automatic Cash System, or DACS.

1968

The concept of the ATM established by Wenzel.

Card-eating: Barclays and a few other banks introduce a machine that encodes cash on plastic cards purchased from a teller. The problem is that the machine always eats the cards, and customers have to buy new cards if they want to make more transactions.

1969

First use of ATM magstripe cards: Docutel installs its Docuteller machine at New York's Chemical Bank. The installation marks the first use of magnetically encoded plastic.

Chemical Bank's ad campaign announces: "On Sept. 2, our bank will open at 9:00 and never close again!"

Other manufacturers get into the game, but Docutel is the first to apply for a patent. Docutel is later credited by the Smithsonian’s National Museum of American History as being the ATM’s inventor. But most people in the industry recognize Docutel’s first machine as the first modern magstripe machine.

Donald C. Wetzel is given credit for developing the Docutel machine, which is initially met with resistance from bankers. Bankers say they’re concerned about the machine’s cost, which is about $8,000 more annually than a human teller. The bankers also fear that customers won’t like having a machine handling their money.

1971

First true bank ATMs: Docutel introduces its Total Teller, the first true fully functioning bank ATM.

Omron (Japan) installs the first On-line cash dispenser.

1973

Docutel rewarded a patent for the ATM.

Proliferation begins: By 1973, 2,000 ATMs — mostly from Docutel- are operating in the United States. They sell for about $30,000 each.

Diebold begins work on the development of its TABS 600 with plans for an off-line prototype.

1974

Diebold’s first TABS 500 machine, an off-line version, is installed at a bank in Atlanta.

Diebold develops the TABS 550, an on-line and off-line version. The flexibility of the machine makes it unique and more marketable to banks.

The TABS 600 also is developed.

1977

Chungho ComNet Co., Ltd. begins developing Teller Machines for banks.

1978

The first IBM-compatible Diebold machine is installed at a bank in Indianapolis.

1979

Chungho ComNet Co (Korea) begins selling Cash Dispensers

1983

Chungho ComNet Co (Korea) begins selling On-line Teller Machines. Machines like this now have a direct connection via telephone lines with the bank's mainframe computers. In later years this connection is regarded as too high risk open for fraud and the machines' records will only be updated once to several times a day.

1994

ICL, the IT services company, has designed the first cash dispenser (CD) with a bill paying facility.

The new CD incorporates a barcode scanner, which allows customers to pay bills automatically from their bank accounts, as well for traditional cash withdrawals and to check account balances.

Banque du Caire, Egypt’s third largest bank, is the first organisation to adopt the new technology in a bid to reduce queues in branches and offer customers a more convenient service. ICL will design and integrate 100 new cash dispensers for the bank in a deal worth £2.4million.

The first people to be able to use the service will be customers of an Egyptian national mobile phone network. Their phone bills will incorporate a barcode holding details of the amount due, as well as their bank account number at the Banque du Caire. The customer simply sweeps the barcode over the scanner at the cashpoint, keys in their PIN number and the bill is paid.