John Shepherd-Barron, who holds the title as the inventor of the world’s first hole-in-the-wall cash dispenser, sadly passed away last month.
John Shepherd Barron’s first ATM was installed in 1967 in Barclays bank in London. The original ATM dispensed a maximum of £10 per withdrawal which was activated using a carbon implanted cheque, as the plastic card was yet to be invented.
The invention of the ATM marked the beginning of customer self service in the retail banking industry and has since become synonymous with banking in the customer consciousness. The machine is now as much part of the consumer experience as the high street bank itself and has developed to become the most utilised customer touch-point in retail banking all over the world.
The First ATM at Barclays Bank
While new customer channels such as the internet and mobile phone have considerably broadened the scope of self service banking, the ATM has held its position as a dominant point of contact and favourite of the consumer.
It is estimated that there are currently over 1.8 million ATMs operating globally which can dispense up to £500 per withdrawal and allow customers to access their money regardless of where they are in the world.
Since Barron’s invention, the ATM has moved beyond being a simple cash dispensing machine. The last ten years in particular have seen a number of changes to the ATM including a new operating system and the introduction of EMV smart cards, allowing customers to access more reliable and secure ATMs with more sophisticated services. For example, many customers now top-up mobile phone credit at the ATM. With stringent testing and monitoring in place, these improvements can also increase uptime of ATMs and decrease the risk of fraud through the channel.
John Shepard Barron’s invention is now forty three years old. Since then, the ground work has been laid for the ongoing development of one of the most relied upon pieces of retail banking technology that continues to evolve and progress today.
Ian Kerr
