A Short History Of ATM’s

In 1967 the world’s first Automated Teller Machine was introduced in the United Kingdom, or what is now called the ATM. It was silver and said “BARCLAYCASH” in large bold letters. There were two rows of numbers for entering in a six-digit pin number and a place for inserting a paper check to get cash. Since that time we have come a very long way, with ATM’s scattered across cities, in businesses and banks, and it doesn’t appear that it will be going away anytime within the near future.

How frequently is physical cash used? It is noted by critics that mobile payment apps, in addition to credit and debit cards, can bring cash payments to an end. However, when current research is looked at, this is not the case. Here are some Cash Facts based on a study that the Cash Product Office of the Federal Reserve conducted in 2014:

  • Cash accounts for 40% of total transactions and is still the most commonly used form of payment for retail.
  • For purchases less than $50 cash is still the most commonly used form of payment.
  • The largest users of cash are low-income consumers.
  • 40% of individuals 18-24 years old use cash mainly for making payments.
  • Households that earn less than $25,000 per year prefer paying their bills using cash over other payment forms.
  • For a backup payment method, cash is preferred.

We will heavily rely on cash for making our daily market purchases. Society is still heavily reliant on cash dispensers and cash. That may mean that the future for ATMS is much closer than it appears. Many large and small businesses today are looking to buy an ATM machine for their customers.

In New York City “Branch of the Future” by Chase was featured. There are tellers with iPads roaming around the bank, and a touch screen is featured on the new ATMs that can give exact change. It has been predicted that more banks will be using a self-serve system, which will most likely be built into ATMs, instead of having physical tellers.

Integration Of ATMs, NFC, and Smartphones

Say you can’t find your bank card but need some quick cash. At one time this was a big inconvenience. However, there is a simple solution for it now. Some banks are offering you an easy solution: access their ATM using your smartphone. This new feature allows you to access your bank account using your smartphone when you don’t have your bank card. The bank app will provide you with an access code, which can only be used for 30 minutes. You then enter it into the ATM machine. After you have entered the access code, you can withdraw cash they way you usually do. The feature is available only on bank-owned ATMs, such as CitiBank, Wells Fargo, and Bank of America.

Actually, there are many new ATM features for smartphones. Customers can withdraw cash using Android Pay and Apple Pay apps. Citibank is taking things to an entirely new level by testing a new iris scanner to be used in its ATMs, similar to the new iPhone X FaceID feature.

With touch screens so pervasive these days, and NFC technology being recently added to ATMs, it really won’t be a surprise to see these two combined at ATMs in the near future.

Seeing eye-to-eye

If you recently have gone through a Starbucks drive-thru, you might have noticed there was a friendly face that stared back at you and prepared to take your order. A similar feature is being released by Bank of America for their ATMs. The feature called Teller Assist enables video conferencing with a real teller during extended banking hours so that you can cash checks, request a loan, or withdraw exact change directly from an ATM.

ATMs more than ever are forging a path for mobile banking’s future. The technology continues to change and improve, with cameras and smartphone capability adding to the human experience. EMV technology is also making it safer to make ATM withdrawals and will continue to do so with ATMs that are more compliant.

The future of ATMs may be here very soon, so definitely watch for it! In the meantime, think about checking out our ATM models, which you can rent, lease and purchase. Be sure to ask us about the Free ATM Placement Program we offer!

Finding The Right Type of Bank for Your Needs

Today the current economic depression has consumers exploring other choices to traditional banking. For years bank customers walked or drove to their local bank, made deposits and withdrawals, cashed checks, used the ATM, negotiated loans, and talked to the branch manager. Interestingly these same consumers are now seriously considering using both types of banking.

Since there are advantages and disadvantages to both banking methods, how do you find the right bank for you? To make a decision that serves your best interests, you must first look at the advantages and disadvantages of both.

Here are a few traditional banking advantages and disadvantages:

Advantages of Traditional Banking

  • You have easy access to and personal contact with the bank manager and other bank personnel.
  • You can write counter checks, purchase bank checks, and deposit checks with a person.
  • You have access to inside bank depositories, and can deposit or withdraw funds day or night all year round.
  • Provide personal loans, mortgages, universal ATM access, and online banking.
  • Federal Deposit Insurance (FDIC) protects your account up to $250,000.
  • You can transfer funds, buy certificates of deposit, and open an IRA account.
  • Online bill paying so that you can easily track your income and expenses.

Disadvantages of Traditional Banking

  • Minimum checking account balance fees.
  • Insufficient funds fees
  • As a rule savings interest rates are lower than those paid by online banks.
  • Higher interest rates on loans
  • Inconvenience since generally open from 9:00 AM to 5:00 PM.
  • Other miscellaneous fees.

Scores of large companies have started offering online options to provide personal financial services to a growing consumer base. By using online capability, these companies achieve the tremendous advantage of lower costs over their traditional competition. They reduce or eliminate bank personnel, leases, rent, buildings, and all the other expenses paid by traditional banks.

Even though convenience is one of the most important advantages of online banking because you can do your banking without leaving home, there are, however, several other important advantages:

Advantages of Online Banking

  • With a computer and internet access, you have worldwide banking readily available.
  • There is no waiting in line, which saves you time and money.
  • Similar to traditional banking it is easy for you to buy certificates of deposit, create IRAs, bill pay, and transfer money.
  • Your bank statements and bills sent to you electronically.
  • 24/7 banking 365 days a year.
  • Full access to many state-of-the-art computer money management programs.
  • Pay higher interest rates than traditional banking.
  • No fee checking accounts.
  • Unlimited free online transactions.
  • Federal Deposit Insurance (FDIC) protects your account up to $250,000.
  • Many other special incentives like cheap checks or reward programs.

Disadvantages of Online Banking

  • Do not have branch bank locations.
  • Unable to make cash deposits.
  • Do not have their own ATM machines.
  • Charge high ATM fees to withdraw cash from other banks.
  • Computer problems create slow transaction processing.
  • Possible hacker attacks gain access to your account information.
  • Difficulty changing banks online.
  • Must have an Internet Service Provider.

What’s the right choice for you?

The average person will alter their ideas and actions when they are certain that the change will be in their best interests. No person deliberately plans to make the wrong decision. Take the time to use every available means at your disposal to gain more knowledge about traditional and online banking so that you can find the right bank for you.