The moment has come for automated banking in the 1960s. Financial institutions all over the globe saw the necessity, which is why ATMs were developed in tandem in various parts of the world at around the same time. They went by various names and operated in various ways. Some simply offered automated withdrawals, while others were exclusively depositories, but they all followed the same principle: clients’ ability to access their accounts should not be limited by bank hours.
ATM’s History in the United States
In 1960, American inventor Luther George Simjian received a patent for one of the world’s first ATMs. A year later, the City Bank of New York installed the Bankograph machine, an experimental device based on his idea. The Bankograph’s capabilities were restricted because it could only receive deposits and not disburse cash. Consumers were allegedly concerned that their money would disappear after it was inserted into the wall-mounted machine. To overcome this issue, the Bankograph used a built-in microfilm camera to take a photo of each deposit and gave a copy of the photo as a receipt. Despite this, most consumers were slow to adopt the new technology, and the Bankograph only lasted six months before being phased out.
By 1968, ATMs had gained popularity in Europe, and consumer attitudes had shifted to the point where people were more willing to absorb new technology conveniences. Donald Wetzel, a Docutel group engineer, and pioneer, invented the first modern ATM that resembled those we know today. Some of the more well-known features of Docutel’s ATM were as follows:
As a client identification card, a plastic card is used.
The ability to make both withdrawals and deposits is kept on a magnetic strip. ATMs grew in popularity in Washington State, thanks to some brilliant marketing initiatives, and by the 1970s, they were widely available across the United States.