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Been to an ATM Lately?

Thirty years ago, no one would have dreamed the ATM would be where it is today. Can anyone now envision its future 30 years out?

November 5, 2003

The writer is director of marketing, strategic development and global marketing for Diebold Inc.

Thirty years ago no one would have even dreamed that we would be where we are today in the ATM industry.

At that time, just dispensing cash was a miracle and receiving it was quite a convenience. Today if we can't get cash out of the ATM, we get upset. When we get cash, the ATM can talk to us. We can get stamps, coupons, theater tickets and phone cards. Our receipts are in two colors. The screens are in full color. Our ATMs can give us bank statements, loan applications, directions to the nearest restaurant, and even the weather. In some parts of the world where passbooks are still in use, the ATM can even update them

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The ATM has become ubiquitous. They are like computers, cell phones and fax machines: once we get used to them, we can't do without. Most ATMs still only do a few things like dispense cash, allow you to transfer funds between accounts, and take deposits in envelopes. But they are poised to do a lot more for us, even in the near future. We have proven the capability to conduct transactions without a card. The ATM will read your fingerprint or scan your retina to make sure you are really you. While you're waiting for your cash, the ATM will politely remind you that you have a mortgage with the bank and ask you if you want to consider a home equity loan. Or it might tell you that you have too much money in your savings account and that you should consider converting some of it to a certificate of deposit.

At the simplest level, an ATM is really just a computer in a safe connected to a series of high capability devices. Anything we can do on a computer, we can do on an ATM. You might not realize that when you're standing in front of an ATM that it could be getting its content from the Internet, but more and more of them are doing just that. ATMs that show you the weather or give you directions to the theater get their information over the Internet.

Advanced functionality on ATMs is key. Financial institutions must make ATM use desirable for consumers. On the other hand, ATM manufacturers must make machines that FIs will find economical. FIs want ATMs that are easily upgraded with new functionality when it comes along. And, they want the upgrades to go quickly and painlessly. They want to protect their investment.

The recently enacted Check Truncation Act greatly changes the way we do banking. Checks will officially become electronic. ATMs have been able to read checks for years, and they can even show you a picture of your check so you're sure it's the correct check for the correct amount, but with the Check Truncation Act in place, the electronic image of the check becomes the legal tender. When this happens, as a consumer you will have almost instant access to the funds that you deposit as a check. Besides, the cost savings to the financial industry will be in millions of dollars.

ATMs will continue to become more accessible to the disabled and easier to use for everyone. By creating an incredibly consistent pattern of placement of components such as card reader, screen, keyboard, cash, and receipt, you can simplify the user experience for everyone, especially sight-impaired users.

Security will always be a big issue with ATMs. We take security seriously when it comes to our money and the ATM industry players are hard at work making ATMs as secure as possible. Triple DES has been mandated for use on any ATMs that access Visa and MasterCard networks, and what self-respecting ATM wouldn't want that? Encrypted PIN pads are now a regular feature on all new ATMs manufactured by Diebold.

The ATM is going to be around for a long time. In the future, there will be more of them connected to the Internet, and they will know who you are when you get there. And you won't need a card to access the ATM. They'll be friendlier, easier and safer to use - these are traits ATM manufacturers are always improving upon.

To answer the question posed in the title of this essay, yes, I've been to an ATM lately, and I'll keep going back because they are a tremendous convenience and I can't do without them.