Kelcie Jeffries
Money & Banking
Mr. Foster
March 8, 2014
How Technology has changed the Banking World over Time
The ATM
“In 1939, Luther Simjian patented an early and not-so-successful prototype of an ATM. 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 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. However, it wasn't until the mid to late 1980s that ATMs became part of mainstream banking” (Bellis). Although we can see that it is not clear on who invented the ATM, I think they all played an important role in developing what we have in today’s world. Don Wetzel was the most recent with installing one of the first ATMs in American and him and two other men invented what we know as today as the ATM card. The ATM made its first showcase on the outside at the Rockville Center, New York Chemical Bank. Also, another interesting fact I learned about this first ATM was that it only gave you cash it did not tell you your balance or let you transfer funds like we can at today’s ATM. “The ATM we know today was later installed and invented in 1971 and was called the total teller” (Bellis). During this era not every customer could have the right to an ATM card, banks would only let credit card holders have access to them. Also, the customer had to have a clean bank record. Very different from the access we now have to an ATM.
Drive-Thru ATMs and More With businesses always looking for new ways to improve and making things easier for consumers so they can save more time, this is when drive-thru ATMs were the next growing invention. With fast food offering drive-thru and movies offering drive-ins the drive-thru ATMs also boomed in the 1950s after World War II.
“Drive-through banking, like other developments in automobile-centered culture, caught on a bit later in the rest of the world. Switzerland, for example, didn't get its first drive-through bank until 1962, when Credit Suisse--then known as Schweizerische Kreditanstalt (SKA)--opened a branch in downtown Zurich featuring eight glass pavilions with drive-through banking services. Though popular at first, the branch faltered in the 1970s, when traffic problems in the city center made fewer people willing to do their banking from their cars. SKA closed the drive-through in 1983” (This Day In History, 2007).
In today’s world I don’t think it would be very difficult to find a drive-thru ATM with the demanding world we live in. I am only twenty two years old and all my life I can remember my mother going through the ATM before we went shopping, went out to eat, or just in need of cash. I don’t think I could even begin to imagine a world without these amazing ATMs. We take so many things for granted in life and we do not even realize that these fast cash withdrawal ATMs are a blessing to society for a more convenient lifestyle.
Super ATMS The next amazing invention in our world today is not on the ATM itself or the Drive-thru ATM, now it is the super ATM which is more improved and literally super! I know for me personally I have never used a super ATM but it sounds very interesting. People nowadays are calling it a “one-stop shop” (Bruce, 2000), because it can sell almost anything from stamps to cell phone minutes.
“Among other things, the new ATMs are capable of cashing checks, printing statements, copies of canceled checks and maps and issuing money orders, postage stamps or phone cards. If the ATM is Web-enabled, you'll be able to do online bill payments. And, you can bet they'll all be equipped with state-of-the-art, full-color monitors to bring you friendly reminders of your financial institution's other services. The new ATMs may also look more like kiosks in that they may have touch screens instead of keypads” (Bruce, 2000).
There are positive and negative sides to this super ATM as with almost any kind of new invention in our virtual world. The positive side is that we will save time. For example, when you need to buy stamps for a money order or getting tickets to a show in town, with all of those types of errands most people would have to go to three different places. However, with the super ATM you can print a money order buy your stamp and purchase your movie tickets all at the same time. The negative side to the super ATM is that if a customer just wanted to get fast cash withdrawal they might have to wait in line which could be a longer wait than if the ATM was not so “super”. Another negative side could be the possibility of no longer needing bank tellers. To me that is a very scary thing because I am a bank teller and although I don’t think that will be my life long career I fear for the future jobs. I like the personal interaction with people even before I became a teller. We never know what kind of new technology will be coming next but this seems to be the next best thing.
Banking over the Phone
“The days of struggling to correctly do the math to balance your checking account are long gone. This innovation was a great one, and still is, for those that are not very Internet savvy. Most banks now offer 24-hour phone services in which you can enter your information and a PIN number to find out your checking account balance. Other options via dialing may include transferring funds, hearing the last deposits and withdrawals made, making payments and inquiring about checks that have been cleared. Some banks use voice recognition so that entering information using the buttons is not even necessary” (Dragon, 2013). Banking over the phone seems like the least of the invention that we worry about. When everyone has a phone at their convenience, you sometimes forget how important they are. The voice recognition seems to me to be very interesting. I think it is very neat that the second time you call a machine it can remember who you are just by your voice. I wonder if you were sick and your voice wasn’t sounding like it normally does, then it might not recognize your voice. That could be a possible downfall to the voice recognition. Another positive result in banking over the phone would have to be the 24-hour availability to consumers. In our fast pace world that we live in today we might need our balance at ten o’clock to make sure there is enough money to make a purchase. Most banks close at around five or six, so having the 24-hour service is a big perk to some of the night owl customers.

Online Banking
My favorite thing about where I bank at is the online banking. I am on my laptop most of my time possibly more than my phone at times so being able to check my balance and see my transactions for the past few months is a bonus in my book. The 24-phone banking has turned into the online banking for consumers. In this virtual world people want to not talk as much to a recorded voice so having the online banking instead of listening to a recording is much better for me personally.
Like every positive thing we invent or come up with, there always seems to be a negative outcome. These newly and improved inventions also come with newly and improved problems.
“Security can vary. Online banks do a good job with security. They're getting the customer more involved with transactions by notifying them if anything is awry. Still, consumers are the weak link. Hacking into bank sites is difficult. So cyberthieves are targeting consumers with weak security instead. The newest twist is "man in the browser" attacks. It is a type of malware that infects a Web browser and is commonly used for financial fraud by intercepting a bank's customer logins and passwords. But by using effective password systems and encrypted bank data, banks and consumers can help to prevent them” (Gustke, 2011). Fraud can always be something to worry about when checking your bank account or even making purchases online with your debit card. Using precautions while online and making sure your security system is up to date can be helpful. I usually monitor my account and if I notice anything suspicious I contact someone at my bank immediately because anyone can become a victim of fraud.
Smartphone Mobile Banking One of the most important technological advancements would have to be being able to bank on your phone. Just like everything else you can do with your phone such as taking pictures or making a weekly planner. Banking seems to be just another addition to being able to have it at the palm of the consumer’s hand. Mobile banking is a positive introduction to our technological world because you can check your balance, receive text alerts from your financial institution, transfer money from two accounts etc.
Mobile banking is a positive advancement because say for example you are waiting in a doctor’s office and just remembered you forgot to pay a credit card bill, with mobile banking you can make your payment within a few minutes. You do not have to make a phone call or even try to beat the clock before your bank or the place closes. Mobile banking is a fast growing trend all over the world and I think it will only progress over time.
Once again mobile banking is almost like online banking and with that said the negative effects of mobile banking are about the same also. People are afraid of hackers and the possibility of getting a virus on a mobile device but there are precautions we can take to reduce this risk.
“There are steps consumers can take to reduce the--albeit small--risk of mobile-banking fraud. Start by password protecting your device. Yes, a determined thief might get around that barrier, but it's still a good basic safeguard, says Trusteer's Tubin. Tend toward banking by app, which is usually more secure than web or text messaging, says Monahan. But download only from the official app store and verify that the developer's name matches the name of your bank. Also, don't save your user name and don't use the same password as on other apps, in case they store it” (AuWerter, 2012).
Smarter Smartphone Banking “A recent introduction to smartphone banking is depositing a check without the need to go to the bank or ATM. Users simply sign the back of the check, take a picture of the front and back, and send the image to the bank using the app. Users can also select which account to send it to 24 hours a day” (Dragon, 2013).
Not only can customers check their balance or transfer money from one account to another but the newest invention that is hot on the market now is being able to deposit a check just by taking pictures with your smart phone. Technology always seems to amaze me and it always seems to get smarter each year.
Another neat app that is available on your smart phone is called Pageonce. This app can help you organize and be able to keep up with all your bills and account numbers. It helps your keep track of when each bill is due such as your credit card bill or utility bill. You can also access your Netflix account with this app. In our digital age it is hard to keep up with 10 credit cards, it is also hard to remember your bank account numbers if you have multiple ones or maybe have a business that has many different accounts. Another neat feature to this app is being able to keep up with flier millage. From business people who travel a lot they can keep their flying millage, credit cards and bank accounts that is with them all the time on their phone in one place. I have never personally used this app because at this point in time I do not own one, but the first app I am going to download when I do get a smartphone is going to be this app.
Human Tellers
“Talking machines have always represented the future. The future is now at Bank of America. With all of the additional features that have been tacked on to ATMs, we can now add an actual human to the list. No, there isn't a small man or woman tucked inside the device! Bank of America is using Teller Assist, a new technology allowing customers to talk to a live teller remotely. These tellers can assist with services until 10 PM on weekdays and 5 PM on weekends. They will be able to help with tasks not usually performed by an ATM, including cashing checks for exact amounts down do the penny, dividing deposits between accounts and giving withdrawals smaller than $20. Tellers will be available in English and Spanish. The machine is debuting in Boston but is planned to add more across America this year. This is a feature that can create convenience and new jobs” (Dragon, 2013). This seems to be the future for the tellers that are in banks now. This can have many positive outcomes for the future jobs all over the world. Most tellers in banks are mostly women and if you are a new mom and have a newborn baby this could make it easier for women to be with their children. Working at home can be a positive thing for mothers. Also, another positive to working at home would have to be cutting down your gas bill. I know for me it takes almost forty five minutes to get to work and if someone is a full time commuter their gas bill could decrease with them being able to work at home. A disadvantage of working at home could be isolation. I know I would not be happy working at home because I need my social interaction and I am sure there are more people that are like that also. Working at home could not be for everyone. Also, another disadvantage could be long hours. Since you are working at home you might think that you could spend more time with family but sometimes it could be the opposite. If you are a workaholic this could cause problems in your family life because a person might think they can get more done than if they had set hours like nine to five for a job.

References
AuWerter, S. (2012). Plan: Is Mobile Banking Really Safe? Retrieved from Money 41(7), 21-22.
Bellis, M. (n.d.). Automatic Teller Machines - ATM. Retrieved from About.com/Investors: http://inventors.about.com/od/astartinventions/a/atm.htm
Bruce, L. (2000, April 3). Super ATMs and kiosks. Retrieved from Bankrate.com: http://www.bankrate.com/brm/news/atm/20010403a.asp
Dragon, D. (2013, April 18). 8 Incredible Ways Technology Has Changed Banking Forever. Retrieved from Mybanktracker.com: http://www.mybanktracker.com/news/mbtslider/8-incredible-ways-technology-changed-banking/#4
Gustke, C. (2011, October 21). Pros and cons of online chekcing accounts. Retrieved from Bankrate.com: http://www.bankrate.com/finance/checking/pros-cons-online-checking-accounts-2.aspx
This Day In History. (2007, Aug. 1). Retrieved from History.com: http://www.history.com/this-day-in-history/first-drive-through-atm-opens-in-china