Article
ATM inventor to speak at ATMIA East
John Shepherd-Barron reflects on his role in banking.
February 11, 2007 by Tracy Kitten — Editor, AMC
When a managing director for London's De La Rue Instruments came up with an idea for 24/7 access to cash, he knew the concept was revolutionary.
"I remember being infuriated that I could not always get access to my money when I needed it, especially over weekends when banks were closed," John Shepherd-Barron, the ATM's creator, told ATM Marketplace in April 2005. "I started thinking of a way of getting money around the clock."
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For Shepherd-Barron, who worked on the currency-printing side for De La Rue, cash had always been a focal point.
It was 1967 - a time when banking was much different than it is today. A machine that could dispense cash day or night was, in most bankers' minds, a novel notion. But could it be pulled off?
"The big break came when I asked the general manager of Barclays Bank for 90 seconds of his time to share the new idea I had," he said. "His reply came after 85 seconds: 'If you can make this device you are speaking about, I will buy it right now.'"
The company, now De La Rue PLC, spent a year developing its De La Rue Automatic Cash System - an ATM prototype. London-based Barclays tested six of the machines. Soon after, it placed an order for 50 more.
The proliferation of ATMs throughout the world, now topping 1.5 million, is a testament to Shepherd-Barron's vision.
This year marks the ATM's 40th birthday, and at the ATM Industry Association's Conference East Feb. 20-23 in Orlando, Fla., Shepherd-Barron, now in his 80s, will talk about his creationand what it has done for the world.
Nowhere to go but up
It also marks the 10th anniversary of ATMIA, an association founded at a point of rapid ATM growth in the United States.
Mike Lee, ATMIA's chief executive, said the upcoming Conference East, the association's largest annual conference, will highlight the ATM industry's past, present and future.
Where will the ATM industry be 10 years from now? There's nowhere to go but up, Lee says.
"Over the 10 years from 1997-2007, ATMIA has managed to grow by an average of over 70 new members each year, and has expanded into most of the ATM industry's regional markets to become a respected international, non-profit organization," Lee writes in the foreword to a book about the association's 10th anniversary. The book is expected to be distributed during the conference.
When Lee joined ATMIA in 2000, it was a U.S. trade association that primarily focused on independent ATM deployers. Over the last 10 years, ATMIA grown to become an organization with members in 50 countries.
Tom Harper, ATMIA's president and founder, has set a goal for the industry to hit 3.1 million by 2017, double the industry's 2006 total. (London-based industry research consultancy Retail Banking Research Ltd. estimates the global ATM count to be closer to 2.4 million by 2017.)
"I believe we should double the current number of deployed ATM locations worldwide by 2017," he said. "In essence this will double the size of our industry. Look at how the market has grown on its own during its 40-year history. If you take the market's deployment history in 10-year increments, the familiar trend line emerges."
ATMIA's goal, Harper said, is to help facilitate that growth.
"Our goal is to reverse the declining growth trend in recent years," he said. "Over the years I've heard rumors of impending saturation points; but new technology always takes us to the next ceiling. How can we possibly predict the effect of new technology 10 years out? With the early surcharge explosion pretty much gone, we need to replace it with an equally strong ATMIA deployment campaign."
To that end, Harper said, ATMIA is poised to assist industry growth by educating governmental bodies throughout the world about the benefits associated with widespread ATM placements. The association also will help ATM deployers build estates in developing markets.
"ATMIA will build up its infrastructure," he said. "Next, we'll strengthen our marketing and PR engine and launch a global initiative to disseminate best practices to governments and deployers."
Harper will outline his ideas for the industry Feb. 21 during his opening address.
Will ATMIA be able to accomplish its goals for the industry?
Dr. Hansup Kwon, the founder and chief executive of Freemont, Calif.-based Tranax Technologies Inc., says that if the past is any indicator, then there's no doubt.
"In the past 10 years, ATMIA has become the organizing voice for our industry. It has taken what was a fragmented industry and built a global community. Today, ATMIA provides a base for articulating common interests, best practices and critical concerns. It has enabled discussion on such issues as security, profitability and global expansion," Kwon said. "ATMIA has a vital role to play within our industry and in addressing the challenges a decade ahead."
And Sandra Hartfield, president and chief executive of Palm Desert, Calif.-based PDNB Electronic Banking Solutions, said ATMIA is well-positioned to foster the world's ATM growth.
"I think that what you're going to see worldwide growth; and with all that we (ATMIA) do with government relations and support for the industry, I do see us having an impact in that environment over the next 10 years," she said. "It's a very exciting time for us."
Could the global market double, as Harper suggests? Yes, Hartfield says.
"We could see deployments in world double," she said. "And I think we are geared to help all these other nations with their ATMs. Just look at the the structure of our organization, with all the people we have in all of these other countries. We've used what we've learned to help us grow globally, and we can take our knowledge and help providers in developing countries."
Banking Executive SummaryTrends / StatisticsIndustry OrganizationsDistributors / ISO / IADRetail / Off-PremisesATM HistoryOtherNorth AmericaBank / Credit UnionATM Industry Association (ATMIA)Tranax Technologies, Inc.
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ATM Industry Association (ATMIA)
The ATM Industry Association, founded in 1997, is a global non-profit trade association with over 10,500 members in 65 countries. The membership base covers the full range of this worldwide industry comprising over 2.2 million installed ATMs.
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