Luther Simjian Came Up With the Idea | Automated Teller Machine | Banking


Luther Simjian came up with the idea of creating a "hole-in-the-wall machine" that would allow customers to make financial transactions. In 1939, Luther Simjian applied for 20 patents related to his ATM invention and field tested his ATM machine in what is now Citicorp. when the first ATM machine was invented by Scot John Shepherd-Barron and used by Barclays Bank in 1967. However, while Shepherd-Barron has the major claim to fame, there have been many other individuals who have also invented some version of the ATM. The machine itself has evolved over the years, with the earlier versions restricted to only one or few banking functions. There has been much debate, however, on who invented the first early versions of Automated Teller Machine. But the history of ATM can be visibly traced back to the year of 1967.

However, some experts have the opinion that James Goodfellow of Scotland holds the earliest patent date of 1966 for a modern ATM, and John D White (also of Docutel) in the US is often credited with inventing the first free-standing ATM design. In 1967, John Shepherd-Barron invented and installed an ATM in a Barclays Bank in London. Don Wetzel invented an American made ATM in 1968.

ATMs, standing for "Automatic Teller Machines", are an easy, convenient way to access your account from almost anywhere. If you're new to them, don't worry. It's easy. The instructions are right there, on the machine.

Key Areas To Know
 Provides the best multiple service support  Cash withdrawals  Checking Account  Money transfer  We can get A/c statements


Drive - in - type:
There are the ATM’s located at the roadside or highways to facilitate the customers to draw the amount as and when they require.

1. 1.

Lobby type:
The ATM’s placed at the crowded places like, airport, hotels, railway stations are called lobby types.

Wall type:
The ATM’s inserted in the wall or placed on the floor or a closed lobby room are wall type ATM’s These are located at the prime locations to facilitate the customers to access the ATM’s as and when they require.


Card reader:

It does the functions of reading the information of magnetic stripes when inserted by the card holders. The card reader reads the information and if it finds that the card is genuine it allows the card holder to processed with the operation or else if card is not valid it capture the card in the machine itself.

2. 3. 4. 5.

Monitor / Screen of the ATM’s: Keyboard: Printer: Slot:

The monitor of ATM machine displays the information on the basis of the information visible on the card, The card holder can conduct the operation systematically. The key board of the ATM machine contains various numbers and information buttons like cancel, search, continue, yes, no, etc. It facilitates the cardholder to operate accordingly. It functions of printing the information requested by the cardholder. It is the place in the ATM from which the information slip goes.

6.Cash dispenser: In the ATM there is a place like cash dispenser
which is a place obtaining the desired amount of cash by the cardholder.

7. Depository: This is the box where the user can deposit the
envelopes containing cash/ cheques/ DD and telephone bills.

8. CPU:

The central processing unit which controls all process, and components like input devices, hard disk, output devices.

9. Cameras:

some ATM’s have cameras installed which has a facility of recording video or taking photo of the users for the security purpose; the purpose of installing the cameras is to avoid frauds and prevent the unscrupulous acts of miscreants.

With ATM

Advantages and Disadvantages of ATM
• ATM Advantages
• • • • • • • • • ATM supports voice, video and data allowing multimedia and mixed services over a single network. Easy to access. Saves time. No need to visit braches. High evolution potential, works with existing, legacy technologies . Provides the best multiple service support. Supports delay close to that of dedicated services. Easy to get money. (In few seconds). Ability to connect LAN to WAN. High speed Mbps and possibly Gbps.

ATM disadvantages
“ATM is not a bank, it is just a machine”

• Highly expense, • ATM Cards can be misused. • power problems will be the major de-merits of ATM. •Services fully denied if fund’s is insufficient in ATM. • ATM’s are not user friendly with all the customer. (illiterates). •Technological inventions may lead to confusion. (innovation). • ATM’s cannot provide all the services related to banking.

The Hub of all Financial Transactions
 Check in wherever you are






ATM. (Automated teller machine) brought new revolution in the Banking sector in 1960-70’s, it made really easy to customers of banks to make there transaction with banks. They can deposit, withdraw, payment, check the balance, get bank statement, etc… without going to bank.


Sign up to vote on this title
UsefulNot useful