When Did the First ATM Come Out & Who Invented It?
Uncover the origins of the world's first ATM, its initial impact, and the key minds behind this financial technology's debut.
Automated Teller Machines (ATMs) have become an integral part of daily financial life, enabling convenient access to funds and banking services at virtually any time. These machines transformed how individuals interact with their bank accounts, moving transactions beyond traditional banking hours and locations. Understanding their origins provides insight into their significant impact on modern finance.
The Inaugural Machine
The world’s first cash-dispensing machine was installed on June 27, 1967, at a Barclays Bank branch in Enfield, North London, United Kingdom. This pioneering machine addressed limited banking hours, allowing customers to access cash outside conventional operations. It dispensed a fixed amount of cash, initially £10, to customers who inserted a special paper voucher. These vouchers were impregnated with carbon-14, which the machine detected for authentication.
This early ATM did not use plastic cards or charge a fee for withdrawals. Known as the De La Rue Automatic Cash System (DACS), it was named after its manufacturer. It represented a significant step towards self-service banking and marked the beginning of a revolution in banking convenience.
Key Figures and Innovations
The concept of the first cash dispenser is widely credited to Scottish inventor John Shepherd-Barron. Inspired by vending machines, he pondered why cash could not be similarly dispensed. Shepherd-Barron, working for De La Rue Instruments, developed the initial machine installed at Barclays.
Another figure in ATM development was Scottish engineer James Goodfellow, who patented the Personal Identification Number (PIN) system in 1966. His innovation combined a machine-readable card with a numerical keypad, ensuring secure access to funds. His work laid the foundation for the security protocols still used in ATMs today. The magnetic stripe card, developed by IBM in the early 1960s, further advanced ATM functionality by allowing reliable encoding of card information.
Early Adoption and Global Spread
The first ATM in the United States debuted on September 2, 1969, at a Chemical Bank branch in Rockville Centre, New York. This machine, known as the Docuteller, was developed by Donald Wetzel and his company Docutel. Initially, it could only dispense cash and was accessible only to customers of that specific bank.
The adoption of ATMs faced early challenges, including public skepticism and the high cost of the machines. Banks gradually invested in these new systems, recognizing their potential to extend banking services beyond traditional hours. For instance, Citibank invested heavily in ATM installations across New York City in 1977, demonstrating a commitment to the technology. The widespread acceptance of ATMs gained momentum as their convenience became evident, leading to their eventual global proliferation.