This Day In History: 09/02/1969 - First ATM

This Day In History: 09/02/1969 - First ATM


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A fire that started in a bakery engulfed and destroyed much of London, including St. Paul's Cathedral, on September 1. Many historical events occurred on September 1 and are recapped by Russ Mitchell in this video clip from This Day In History. Also, Theodore Roosevelt said his famous line that the US should speak softly and carry a big stick at a Minnesota State Fair. A US French expedition claimed they found the wreck of the Titanic, and the first ATM was used by the public on this day as well.


Company History

Church & Dwight is one of America’s oldest, best recognized companies and our journey over the previous 175 years has been a long and successful one. We believe our commitment to quality, purity, integrity and performance will continue to distinguish our culture and products well into the future!

Click the arrows or swipe to navigate the timeline below. You can also use the right and left arrow keys on your keyboard.

Explore Our History

Click or swipe to explore the timeline.

Church & Dwight was founded by Dr. Austin Church, and his brother-in-law, John Dwight. Together, they went into the production and marketing of Baking Soda, a trade name for bicarbonate of soda.

James A. Church joined his father as a member of Church & Co. and adapted the famous ARM & HAMMER™ trademark – the arm of Vulcan, Roman mythological god of fire, with hammer in hand. Since then, this trademark has become one of the world’s most recognized logos – a symbol of the company’s tradition of integrity and quality.

The descendants of the founders consolidated their interests under the name of Church & Dwight Co., Inc.

ARM & HAMMER™ continued delivery of its popular mail order guides which contained recipes and helpful household tips. Some contained family recipes from the wives of founders, Dr. Austin Church & John Dwight.

During the company’s first 80 years, sodium bicarbonate was used and marketed almost exclusively as a household product with numerous uses.

1960s

This 1967 ARM & HAMMER™ advertisement displayed numerous uses for its baking soda, from sunburn treatment and odor control to oral care and automotive cleaning.

Church & Dwight built its sodium bicarbonate plant in Green River, Wyoming, to take advantage of the natural soda ash reserves in the area.

In April, 1970, Church & Dwight was honored to be the sole corporate sponsor for the first Earth Day.

The six-story manufacturing plant in Old Fort, OH is built to help meet future growth by using new processing technology built by the Church & Dwight engineers.

1980s

Church & Dwight began developing Dry Sorbent Injection solutions to reduce air pollution from stack gases.

For its 100th anniversary on July 4th, the Statue of Liberty's inner copper walls are cleaned with sodium bicarbonate, which removes 99 years of coal tar without damage to the copper.

Armand Products was formed in 1986 through a Joint Venture agreement between Church & Dwight Co., Inc. and Occidental Chemical Corporation, two of the chemical industry’s largest brands.

ArmaKleen is a Joint Venture between Church & Dwight Co., Inc. and Safety-Kleen, two of the leading commercial and industrial parts cleaning companies.

2000s

The company continued to research and develop new bicarbonate product uses and formulations, to serve exciting new applications.

Present

Church & Dwight’s journey has been a long and successful one. For the past 175 years, our commitment to quality, purity, integrity and performance has distinguished our culture and products and will continue well into the future!


The history of email

Email is much older than ARPANet or the Internet. It was never invented it evolved from very simple beginnings.

Early email was just a small advance on what we know these days as a file directory - it just put a message in another user's directory in a spot where they could see it when they logged in. Simple as that. Just like leaving a note on someone's desk.

Probably the first email system of this type was MAILBOX, used at Massachusetts Institute of Technology from 1965. Another early program to send messages on the same computer was called SNDMSG.

Some of the mainframe computers of this era might have had up to one hundred users -often they used what are called "dumb terminals" to access the mainframe from their work desks. Dumb terminals just connected to the mainframe - they had no storage or memory of their own, they did all their work on the remote mainframe computer.

Before internetworking began, therefore, email could only be used to send messages to various users of the same computer. Once computers began to talk to each other over networks, however, the problem became a little more complex - We needed to be able to put a message in an envelope and address it. To do this, we needed a means to indicate to whom letters should go that the electronic posties understood - just like the postal system, we needed a way to indicate an address.

This is why Ray Tomlinson is credited with inventing email in 1972. Like many of the Internet inventors, Tomlinson worked for Bolt Beranek and Newman as an ARPANET contractor. He picked the @ symbol from the computer keyboard to denote sending messages from one computer to another. So then, for anyone using Internet standards, it was simply a matter of nominating [email protected] Internet pioneer Jon Postel, who we will hear more of later, was one of the first users of the new system, and is credited with describing it as a "nice hack". It certainly was, and it has lasted to this day.

Despite what the world wide web offers, email remains the most important application of the Internet and the most widely used facility it has. Now more than 600 million people internationally use email.

By 1974 there were hundreds of military users of email because ARPANET eventually encouraged it. Email became the saviour of Arpanet, and caused a radical shift in Arpa's purpose.

Things developed rapidly from there. Larry Roberts invented some email folders for his boss so he could sort his mail, a big advance. In 1975 John Vittal developed some software to organize email. By 1976 email had really taken off, and commercial packages began to appear. Within a couple of years, 75% of all ARPANET traffic was email.

Email took us from Arpanet to the Internet. Here was something that ordinary people all over the world wanted to use.

As Ray Tomlinson observed some years later about email, "any single development is stepping on the heels of the previous one and is so closely followed by the next that most advances are obscured. I think that few individuals will be remembered." That's true - to catalogue all the developments would be a huge task.

One of the first new developments when personal computers came on the scene was "offline readers". Offline readers allowed email users to store their email on their own personal computers, and then read it and prepare replies without actually being connected to the network - sort of like Microsoft Outlook can do today.

This was particularly useful in parts of the world where telephone costs to the nearest email system were expensive. (often this involved international calls in the early days) With connection charges of many dollars a minute, it mattered to be able to prepare a reply without being connected to a telephone, and then get on the network to send it. It was also useful because the "offline" mode allowed for more friendly interfaces. Being connected direct to the host email system in this era of very few standards often resulted in delete keys and backspace keys not working, no capacity for text to "wrap around" on the screen of the users computer, and other such annoyances. Offline readers helped a lot.

The first important email standard was called SMTP, or simple message transfer protocol. SMTP was very simple and is still in use - however, as we will hear later in this series, SMTP was a fairly naïve protocol, and made no attempt to find out whether the person claiming to send a message was the person they purported to be. Forgery was (and still is) very easy in email addresses. These basic flaws in the protocol were later to be exploited by viruses and worms, and by security frauds and spammers forging identities. Some of these problems are still being addressed in 2004.

But as it developed email started to take on some pretty neat features. One of the first good commercial systems was Eudora, developed by Steve Dorner in 1988. Not long after Pegasus mail appeared.

When Internet standards for email began to mature the POP (or Post Office Protocol) servers began to appear as a standard - before that each server was a little different. POP was an important standard to allow users to develop mail systems that would work with each other.

These were the days of per-minute charges for email for individual dialup users. For most people on the Internet in those days email and email discussion groups were the main uses. These were many hundreds of these on a wide variety of topics, and as a body of newsgroups they became known as USENET.

With the World Wide Web, email started to be made available with friendly web interfaces by providers such as Yahoo and Hotmail. Usually this was without charge. Now that email was affordable, everyone wanted at least one email address, and the medium was adopted by not just millions, but hundreds of millions of people.


Canada History: Dec. 1, 1969: Cash and convenience finally meet

In the “good old days” if you needed cash, you had to make to the bank during their relatively limited public hours Monday to Friday. Forget weekends, or after hours, if you ran short it was too bad.

So it was on December 1, 1969 that new technology came to Canada in the form of a machine stuck in the outside wall of a bank. It was the first “automatic teller machine” (ATM) or “automatic bank machine” (ABM).

CBC reporter Bill Casey and the “IDA” bank machine prototype technology (Identifying, Dispensing, Accounting) in 1968
  

The Canadian Imperial Bank of Commerce (CIBC) was the first in this country to adopt the technology calling it the “24 hour cash dispenser”.

Introduced in London, England in June 1967 by Barclay’s as DACS-the De La Rue Automatic Cash System, and then the U.S in ’68, and Australia in ’69, the machine enabled the bank’s clients to open the machine with a key, then slip a plastic bank card into the machine and then punch in their security code after which an envelope with a small fixed amount of cash would pop out. In Canada’s first machines it was $30.

In Jun 2017, on the 50th anniversary of the world’s first ATM, Barclays placed a “golden” ATM at the location of that first machine. (Hannah McKay-REuters)

Of course $30 may not seem like a lot, but in 1969 it was the rough equivalent of about $200 today.

Other Canadian banks followed but not immediately, with the Royal Bank of Canada (RBC) in ’72, Scotia Bank in 1973, Bank of Montreal with “Instabank” (BoM) in the mid 70’s and Toronto Dominion (TD) in ’81 with their “Johnny Cash machine” with a commercial featuring the famous singer, but later switched to the name “Green Machines”.

The machines evolved fairly quickly as well from simple withdrawal of a small fixed amount originally, to capability of deposits, cheque cashing and other features which had previously required a teller.

Woman using one of the early CIBC 󈬈hr cash dispenser” machines. First unlock the access door with a key, slip in your card, punch in the code, then take out $30. The height of convenience in the early 70’s. (CIBC)

By the mid to late 70’s the machine’s popularity and numbers were growing steadily. In 2009, CIBC alone had over 3,800 of the machines across the country. Today there are over 18,600 bank-owned machines in Canada, and about 70,000 in all, the latter privately owned and charging a fee for withdrawals.

In 1988 a related technology, the debit card, came to Canada. Tried first by Credit Unions in Alberta and Saskatchewan and adopted in a test by the RBC in London Ontario, the debit card was similar to a credit card, but took money directly from your bank account to the store’s account, meaning you really didn’t have to go to a bank machine for cash in many cases such as grocery and other shopping.

Although there has been some backlash from people noting that the machines have resulted in job losses of tellers and some branch closures, the popularity of the bank machines grew.

Once the latest in convenience, now even these technologies, although are slowly being replaced by internet banking function people can access through their smart phones. Banks estimate that about 68 per cent of banking activities are now done online or through smart phones, and only 16 per cent of transactions taking place through banking machines, the once revolutionary technology now itself being supplanted by newer technology.

More people are using smart phones for payments eliminating the need for cash and for banking machines (Eric Risberg-Associated Press

Now, the complaints are that online tech has led to hacking and theft incidents, and that companies can now track and record your activities even more than before. Still that seems to hardly slow the expanding use of online and mobile banking tendencies.

Because of the decline in their use banks have begun to slowly eliminate ABMs as they are becoming less used, and less profitable.

A once revolutionary technology, is now being slowly replaced by new digital technology and like the old pay-phone booths, although still plentiful,ATM’s may soon become harder to find.


Contents

As of December 2019 [update] , the Bank had assets totalling NGN5.9 trillion. [2] The Bank's profit before tax for the twelve months ending 31 December 2019 was approximately NGN70.8billion. FirstBank is wholly owned by FBN Holdings PLC, which in itself has diversified ownership, with over 1.3 million shareholders. The bank was founded in 1894 and is Nigeria’s oldest bank. It converted to a public company in 1970 and was listed on The Nigerian Stock Exchange (NSE) in 1971. However, as part of the implementation of the non-operating holding company structure, it was delisted from the NSE and replaced with FBN Holdings Plc. in 2012.

FirstBank has been named " Best Bank Brand in Nigeria" for six years in a row – 2011 to 2016 – by The Banker magazine of the Financial Times Group it was awarded "Most Innovative Bank in Africa" in the EMEA Finance African Banking Awards 2014 it has clinched the “Best Bank in Nigeria” award by Global Finance Magazine 15 times and the “Best Private Bank in Nigeria” by World Finance Magazine seven times. Some other recent awards received by the Bank are “Best Banking Brand Nigeria, 2019” by Global Brands Magazine “Best Mobile Banking App – Nigeria, 2019” by Global Business Outlook and “Best Financial Inclusion Program – Nigeria, 2019 by International Investor.

The subsidiaries of First Bank of Nigeria include the following: [3]

  • FBN Bank (DRC) Formerly Banque International de Credit (BIC) – Kinshasa, Democratic Republic of the Congo – (75% shareholding) is a subsidiary of First Bank of Nigeria Limited, and was until September 2014 called BIC which was founded in April 1994 [4]
  • FBN Bank (China) – Beijing, China – representative office
  • FBN Bank (Ghana) – Accra, Ghana – 100% shareholding [5]
  • FBN Bank (Guinea) – Conakry, Guinea – 100% shareholding
  • FBN Bank (Senegal) – Dakar – 100% shareholding
  • FBN Bank (Sierra Leone) – Freetown, Sierra Leone – 100% shareholding
  • FBN Bank (South Africa) – Johannesburg, South Africa – representative office
  • FBN Bank (UAE) – Abu Dhabi, United Arab Emirates – representative office
  • FBN Bank (UK) – London, [6] United Kingdom – 100% shareholding – savings products sold under FirstSave brand
  • FBN Bank (UK/Paris) – Paris, France – a branch of the subsidiary in the UK
  • First Pension Custodian Limited
  • FBN Mortgages Limited
  • FBN Bank (Gambia)

In 2010, the Central Bank of Nigeria revised the regulation covering the scope of banking activities for Nigerian banks. The universal banking model was discontinued and banks were required to divest from non-core banking businesses or adopt a holding company structure. FirstBank opted to form a holding company, FBN Holdings Plc., to capture synergies across its already established banking and non-banking businesses. The new structure resulted in a stronger platform to support the group’s future growth ambitions domestically and internationally.

Bello Maccido, who was executive director (retail, north) of FirstBank, became the CEO of the new parent company. He retired effective from 31 December 2015 and was succeeded by Urum Kalu Eke Mfr (former executive director, South of FirstBank) as group managing director of the holding company. The shares of FBNHoldings are listed on The Nigerian Stock Exchange. The business groups of FBNHoldings are:

  1. Commercial Banking – includes First Bank of Nigeria Ltd and all its commercial banking subsidiaries: FBNBank (UK) Ltd with a branch in Paris, France, FBNBank DRC, FBNBank Ghana, FBNBank Gambia, FBNBank Guinea, FBNBank Sierra-Leone, FBNBank Senegal, First Pension Custodian Limited, FBN Mortgages Limited.
  2. FBNQuest – FBNQuest is the brand name of the Merchant Banking and Asset Management businesses of FBN Holdings Plc, which comprises FBNQuest Merchant Bank Limited, FBNQuest Capital Limited, FBNQuest Securities Limited, FBNQuest Capital Asset Management Limited, FBNQuest Trustees Limited, FBNQuest Funds Limited and FBN Capital Partners Limited. [7][8]
  3. Insurance – Insurance-related subsidiaries: FBNInsurance, FBN General Insurance and FBN Insurance Brokers. The business group offers life and general insurance services as well as insurance brokerage services.

As at 31 December 2015, the Group closed with gross earnings of N505.2 billion, total assets of N4.2 trillion and N578.8 billion in total equity.

Pre-independence Edit

FirstBank commenced business in 1894 in what was then the British controlled areas, as the Bank of British West Africa. [9] The bank originally served British shipping and trading agencies in Nigeria. The founder, Alfred Lewis Jones, was a shipping magnate who originally had a monopoly on importing silver currency into West Africa through his Elder Dempster shipping company. According to its founder, without a bank economies were reduced to using barter and a wide variety of mediums of exchange, leading to unsound practices. A bank could provide a secure home for deposits and also a uniform medium of exchange. The bank primarily financed foreign trade, but did little lending to indigenous Nigerians, who had little to offer as collateral for loans.

Post-independence Edit

After Nigeria's independence in 1960, the Bank began to extend more credit to indigenous Nigerians. At the same time, citizens began to trust British banks since there was an 'independent' financial control mechanism and more citizens began to patronize the new Bank of West Africa.

In 1965, Standard Bank acquired the Bank of West Africa and changed its acquisition's name to Standard Bank of West Africa. In 1969, Standard Bank of West Africa incorporated its Nigerian operations under the name Standard Bank of Nigeria. In 1971, Standard Bank of Nigeria listed its shares on the Nigerian Stock Exchange and placed 13% of its share capital with Nigerian investors. After the end of the Nigerian civil war, Nigeria's military government sought to increase local control of the retail-banking sector. In response, now Standard Chartered Bank reduced its stake in Standard Bank Nigeria to 38%. Once it had lost majority control, Standard Chartered wished to signal that it was no longer responsible for the bank and the bank changed its name to First Bank of Nigeria Limited in 1979. By then, the bank had re-organized and had more Nigerian directors than ever.

In 1991 the Bank changed its name to First Bank of Nigeria Plc following listing on The Nigerian Stock Exchange. In 2012, the Bank changed its name again to First Bank of Nigeria Limited as part of a restructuring resulting in FBN Holdings Plc ("FBN Holdings"), having detached its commercial business from other businesses in the First Bank Group, in line with the requirements of the Central Bank of Nigeria. FirstBank had 1.3 million shareholders globally, was quoted on The Nigerian Stock Exchange (NSE), where it was one of the most capitalized companies and also had an unlisted Global Depository maga communication Receipt (GDR) programme, all of which were transferred to its Holding Company, FBN Holdings in December 2012.

In 1982 FirstBank opened a branch in London, which it converted into a subsidiary, FBN Bank (UK), in 2002. Its most recent international expansion was the opening in 2004 of a representative office in Johannesburg, South Africa. In 2005 it acquired FBN (Merchant Bankers) Ltd. Paribas and MBC International Bank Ltd, a group of Nigerian investors, had founded MBC in 1982 as a merchant bank, and it became a commercial bank in 2002.

In June 2009, Stephen Olabisi Onasanya was appointed group managing director/chief executive officer, replacing Sanusi Lamido Sanusi, who had been appointed governor of the Central Bank of Nigeria. Onasanya was formerly executive director of banking operations & services. He retired on 31 December 2015 and Adesola Adeduntan took over as managing director/chief executive officer, First Bank of Nigeria Ltd and subsidiaries effective 1 January 2016, with Gbenga Shobo as deputy managing director.


The first ATM makes its debut in New York

On this day in 1969, America's first automatic teller machine (ATM) makes its public debut, dispensing cash to customers at Chemical Bank in Rockville Centre, New York. ATMs went on to revolutionise the banking industry, eliminating the need to visit a bank to conduct basic financial transactions. By the 1980s, these money machines had become widely popular and handled many of the functions previously performed by human tellers, such as cheque deposits and money transfers between accounts.

Today, ATMs are as indispensable to most people as cell phones and e-mail. Several inventors worked on early versions of a cash-dispensing machine, but Don Wetzel, an executive at Docutel, a Dallas company that developed automated baggage-handling equipment, is generally credited as coming up with the idea for the modern ATM. Wetzel reportedly conceived of the concept while waiting in line at a bank.

The ATM that debuted in New York in 1969 was only able to give out cash, but in 1971, an ATM that could handle multiple functions, including providing customers' account balances, was introduced. ATMs eventually expanded beyond the confines of banks and today can be found everywhere from garages to convenience stores to cruise ships.

There is even an ATM at McMurdo Station in Antarctica. Non-banks lease the machines (so-called "off premise" ATMs) or own them outright. Today there are well over 1 million ATMs around the world, with a new one added approximately every five minutes.

It's estimated that more than 170 Americans over the age of 18 had an ATM card in 2005 and used it six to eight times a month. Not surprisingly, ATMs get their busiest workouts on Fridays. In the 1990s, banks began charging fees to use ATMs, a profitable move for them and an annoying one for consumers. Consumers were also faced with an increase in ATM crimes and scams.

Robbers preyed on people using money machines in poorly lit or otherwise unsafe locations, and criminals also devised ways to steal customers' PINs (personal identification numbers), even setting up fake money machines to capture the information. In response, city and state governments passed legislation such as New York's ATM Safety Act in 1996, which required banks to install such things as surveillance cameras, reflective mirrors and locked entryways for their ATMs.


A Brief History of the ATM

Today, we think nothing of walking out of our houses on a Friday night without a penny in our pocket. The reason is that there is a network of ATMs around the globe: In the UK and U.S. alone, there are around 150 ATMs per 100,000 people—plenty to go around. A ccording to analysts RBR, 2.25 million machines dispensed cash automatically at the end of 2010, and that’s expected to grow beyond 3 million by 2016.

But although we use them without a second thought, precious few of us know how they came to sit on our high streets and in the walls of our banks.

Luther George Simjan’s Bankograph

City Bank of New York installed a machine called a Bankograph in 1961. This wasn’t an ATM as we know it, though: rather than dispensing cash, it acted as an automated way to deposit cash and checks. One thing that it did share with the machines we use today was its general look and design.

Transported back to the early 1960s for the six months the Bankograph was available (it was removed after it proved unpopular to account holders, probably because it was new and untried), a modern-day person would likely be able to recognize it as something similar to today's ATMs. Blocky and boxy, it cemented the design standards for companies that would follow.

John Shepherd-Barron’s chocolate dispenser

According to John Shepherd-Barron, the reason we have ATMs is his love of chocolate and him running late one Saturday. He managed to miss the midday closing time of his local bank on a Saturday in 1965, meaning he couldn’t take out any cash for the weekend. He got thinking that cash ought to be as easy to get as chocolate bars from a dispensing machine.

Shepherd-Barron’s inspiration struck in the bath, where he was relaxing after a long day working for De La Rue, a global currency printer. Switching out chocolate bars for cash, the laborer took his idea to his bosses, who in turn presented them to Barclays Bank. The company was keen, and on June 27, 1967, the Enfield High Street branch of Barclays began dispensing cash, £10 at a time. Users inserted a single-use paper voucher (which would be mailed back to the customer to prevent fraud) and keyed in a four-digit code that we know now as a PIN, and they were given their money.

Meanwhile, in Sweden…

Nine days after Barclays unveiled their Enfield cash machine, Nixdorf, a Swedish bank, installed their first ATM dispensing kronor. They called their machine the Bankomat, a name which lives on in many European languages (including the Italian bancomat) as the term for ATMs.

From that point on there was a flurry of machine unveilings: Westminster Bank in the UK allowed their customers to use their own-branded ATMs in 1968. Around the same time Japanese savers could withdraw yen from their own machines, and a year later the first US-based machines came to market in Rockville Centre, Long Island, New York. Chemical Bank, the owners of the new automated teller machine, declared that “our bank will open at 9:00 and never close again.”

Networked ATMs

Attaching ATMs to an internet connection became paramount to enable bank balances to update automatically and dynamically. The added complication of this caused the market to narrow somewhat in the coming decades, with two companies, Diebold and NCR, becoming the front runners and providing most of the machines used. They were replaced by other, nimbler manufacturers with better-looking and performing machines, and today ATMs are everywhere, always on, and constantly being used.


The ATM is Dead. Long Live the ATM!

Automated teller machines, better known as ATMs, have been a part of the American landscape since the 1970s—beacons of self-service and convenience, they revolutionized banking in ways we take for granted today. They live to serve we only really notice them when we can’t seem to locate one.

But in recent years, the ATM no longer does something that no other machine or outlet can do and its days, some say, are numbered. Or is it? Because it looks like at the very moment ATM usage in on the decline, some American banks are doubling-down on their ATM investment.

The “world’s first” ATM landed on a high street in Enfield, a suburb of London, at a branch of Barclays bank there’s even a blue plaque on the outside of the building, still a Barclays, to memorialize the cash dispenser’s June 27, 1967, debut. The story goes that John Shepherd-Barron, an engineer at printing company De La Rue, came up with what was essentially a cash vending machine one Saturday afternoon after he missed his bank’s open hours. He was, notably, in the bath. Shepherd-Barron he approached Barclays with the idea, a contract was hurriedly drawn up (over a “pink gin”) and soon after, the new cash dispenser – with a 㾶 maximum withdrawal – sprouted up next to the bank. The machine transformed banking and Shepherd-Barron’s name went down in history: In 2005, he was made an Officer of the Order of the British Empire for his services to banking and the obituaries after his death in 2010 all called him the “inventor of the ATM”.

It’s a good story, although it’s almost certainly not true – “absolutely rubbish,” laughed professor Bernardo Batiz-Lazo, professor of business history and bank management at Bangor University, Wales, and the co-author of a book on the history of the ATM.

Shepherd-Barron was indeed part of the Barclays machine group, though, Batiz-Lazo says, there were several teams working independently to come up with a solution to the same problem: How can you get cash out of your bank after hours without resorting to robbery? It also wasn’t an idea that came from nowhere, eureka moment in the bath aside. Banks had been actively looking for a way to automate the teller process – Batiz-Lazo says that the individual engineers might not have known that anyone else was working on the same ideas, but the banks certainly knew. Moreover, ATM innovation had a number of clear predecessors. Batiz-Lazo pointed to American Luther George Simjian’s invention of the Bankograph in 1960, machine that would allow bank customers to deposit checks and cash into a machine and that spent a short time in the lobby of a New York bank (it didn’t catch on: “The only people using the machines were prostitutes and gamblers who didn’t want to deal with tellers face to face,” Simjian supposedly said). Other progenitors include the application of the magnetic stripe card in things like electronic ticket gates and innovations in self-service gas stations and vending machines.

There were at least two other groups working at the same time as Shepherd-Barron, although there’s some evidence that a cash-dispensing device popped up in Japan briefly even before the Barclays device made its appearance. Just a week after the Barclays cash dispenser was installed, a Swedish cash machine appeared a month later, Britain’s Westminster Bank rolled out its cash dispenser. Over the next two years, more groups began working on their own machines. 1969 was a big year for ATMs: another British bank, Midland, partnered with tech company Speytech to roll out their machines Japan’s Omron Tateishi company installed one outside the Sumitomo Bank and the Chemical Bank in Rockville Centre, New York installed its ATM with the prescient advertising slogan, “On September 2, our banks will open at 9 am and never close again.”

These first devices were not just geographically dispersed, they were technologically all over the place, too. The hurdles in creating an automated cash-dispensing device were pretty substantial, and each machine handled them in different ways. Some machines dispensed cash in plastic cartridges, rather than as individual notes some had customers use a metal or plastic token that was inserted into the machine and kept, to be mailed back to the customer later others issued customers stacks of paper, like a check, that were used in the same way.

Omron Tateishi’s machine used a magnetic-stripe card Barclays machine had customers enter a PIN to identify themselves, and checked that number against what was basically a check inserted into the machine. But security was always an issue – there was no way to really ensure that the user of the token was actually the holder of the account, a fact that proto-hackers in Sweden exploited to great advantage in 1968 when they used a stolen ATM token to withdraw huge amounts of money from different machines. Then there was the fact that ATM electronics were being forced to work in all-weather conditions, resulting in frequent breakdowns. These early ATMs were big, clunky, unreliable, and not incredibly popular.

So why did banks persist in installing them?

The short answer is that despite their limitations, ATMs were at the vanguard of technology and therefore desirable. ATMs emerged in the 1960s and 󈨊s, out of a brave new world where “self-service” and “automation” were big buzzwords that appealed to a wide swath of people. The longer answer is that each country that worked on developing ATMs had their own reasons and particular social milieu that pushed the dispenser’s innovation. In the U.K., where three of first working ATM prototypes were born, banks were facing unprecedented pressure from banking unions to close on Saturdays. This was around a great period of unionizing in Britain, when workers’ unions had increasing power at the same time, business leaders were being sold the idea that automation would save labor costs and reduce the influence of the unions. Automating the teller process seemed like a very good idea, one that would satisfy the customers and the banking unions, and even give banks themselves a measure of control.

A woman makes use of an early model automated teller machine belonging to Surety National Bank in 1970. (© Bettmann/CORBIS)

In the U.S., there was certainly a need for more flexible banking – banks had horrible hours for working people. But at the same time, as much as 30 percent of the American population didn’t bother with banks and why would they? Many American workers received their pay packets at the end of each week in a big wad of cash and after bills were paid, there was either not enough left over to deposit into a bank account or simply no reason to do so. If you were paid in checks, department stores like Sears or J.C. Penney’s would happily cash your check for you – especially if they thought you might spend a bit of it on the way out. However, banks, now increasingly moving into the retail sector, were waking up to the fact that they were losing out on a lot of business. Their interest in rolling out ATMs came from wanting to attract more customers with shiny new gadgetry and then, once they had those customers, up-sell them on things like loans and credit cards. There were also other, bigger reasons banks pushed forward with ATMs, including not having to lengthen banking hours, reducing congestion in bank branches, postponing or even eliminating the need to open new branches while still maintaining a physical presence, and, of course, cutting labor costs. So some banks, like Citibank, pushed ATMs hard.

Ultimately, the ATM was part of a revolution in how banking was seen and saw itself. This shift had to do with what kind of business bankers thought they were in – turns out, it was information processing, not money moving. It also, Batiz-Lazo says, facilitated a shift in the balance of power of banks: People began to identify themselves with the bank’s brand, rather than the individual branch this was a fundamental change in the role of banks in society. ATMs showed that banking needn’t be tied to a branch or even a human being, prefiguring a world where banking is done 24 hours a day, seven days a week on mobiles and laptops, and definitely not in a branch (more on this later).


What Happened This Week

Mathematician Blaise Pascal was born in France. Before he died at age 39, Pascal produced several important theorems and treatises on geometry, physics, theology, and other subjects. His most significant contribution to computing came with the invention of the Pascaline, a digital calculator that he designed to help his father in his tax-collecting work.

The National Bureau of Standards dedicated the SEAC (Standards Eastern Automatic Computer) in Washington as a laboratory for testing components and systems for setting computer standards. The SEAC was the first computer to use all-diode logic, a technology more reliable than vacuum tubes, and was the first stored-program computer completed in the United States. Magnetic tape in the external storage units stored programming information, coded subroutines, numerical data, and output.

IBM retired its last "STRETCH" mainframe, part of the 7000 series that represented the company's first transistorized computers. At the top of the line of computers -- all of which emerged significantly faster and more dependable than vacuum tube machines -- sat the 7030, or STRETCH. Seven of the computers, which featured a 64-bit word architecture and other innovations, were sold to national laboratories and other scientific users. L. R. Johnson first used the term "architecture" in describing the STRETCH.

Konrad Zuse was born in Germany. An early computer pioneer, Zuse in the 1940s began work on Plankalkul (plan Calculus), the first algorithmic programming language. Seven years earlier, Zuse developed and built the world's first binary digital computing device, the Z1. He completed the first fully functional program-controlled (by a punched paper tape) electromechanical digital computer, the Z3, in 1941. Only the Z4 -- the most sophisticated of his creations -- survived World War II.

Turing, a British mathematician, logician and cryptanalyst, played key roles in the conception and theoretical underpinnings of electronic computers. As a codebreaker at Bletchley Park in the UK during World War II, Turing led the team that cracked the "unbreakable" Enigma code used by the German high command for battlefield communications. This has led some observers to speculate that Turing's work alone shortened the war by two years, savings many lives. Turing is best-known today for his work on the idea of a "universal computer," one that could run any program. This has since become known as a "Turing Machine." Turing died under mysterious circumstances from cyanide poisoning in 1954, though it was officially declared suicide. He was 41.

Hewlett-Packard Co. announced new advanced ATM test capabilities, which it showcased at the Supercomm '96 convention in Dallas from June 25 to June 27. The new asynchronous transfer mode test options allowed users to test equipment according to their specific "class of service."

Microsoft is incorporated. Founded six years earlier by Bill Gates and Paul Allen, Microsoft grew out of the friends' development of BASIC for the MITS Altair home computer kit. With later successes in its Windows operating system and software such as Word and Excel, Microsoft has grown to dominance in the personal computer software industry and billions of dollars of revenue.

The US Supreme Court ruled the Communications Decency Act unconstitutional on a 7-2 vote. The act, passed by both houses of Congress, sought to control the content of the Internet in an effort to keep pornography from minors. In an opinion written by Justice John Paul Stevens, the Supreme Court ruled the act a violation of free speech as guaranteed by the US Constitution.


Automated teller machine

An automated teller machine (ATM) or cash machine (in British English) is an electronic telecommunications device that enables customers of financial institutions to perform financial transactions, such as cash withdrawals, deposits, funds transfers, balance inquiries or account information inquiries, at any time and without the need for direct interaction with bank staff.

ATMs are known by a variety of names, including automatic teller machine (ATM) in the United States [1] [2] [3] (sometimes redundantly as "ATM machine"). In Canada, the term automated banking machine (ABM) is also used, [4] [5] although ATM is also very commonly used in Canada, with many Canadian organizations using ATM over ABM. [6] [7] [8] In British English, the terms cashpoint, cash machine, cashline and hole in the wall are most widely used. [9] Other terms include any time money, cashline, tyme machine, cash dispenser, cash corner, bankomat, or bancomat. Many ATMs have a sign above them indicating the name of the bank or organisation that owns the ATM, and possibly including the networks to which it can connect. ATMs that are not operated by a financial institution are known as "white-label" ATMs.

Using an ATM, customers can access their bank deposit or credit accounts in order to make a variety of financial transactions, most notably cash withdrawals and balance checking, as well as transferring credit to and from mobile phones. ATMs can also be used to withdraw cash in a foreign country. If the currency being withdrawn from the ATM is different from that in which the bank account is denominated, the money will be converted at the financial institution's exchange rate. [10] Customers are typically identified by inserting a plastic ATM card (or some other acceptable payment card) into the ATM, with authentication being by the customer entering a personal identification number (PIN), which must match the PIN stored in the chip on the card (if the card is so equipped), or in the issuing financial institution's database.

According to the ATM Industry Association (ATMIA), as of 2015 [update] , there were close to 3.5 million ATMs installed worldwide. [11] [12] However, the use of ATMs is gradually declining with the increase in cashless payment systems. [13]


Watch the video: John Shepherd-Barron: The History of the ATM - Part 1