ATM

What is an ATM?

The acronym ATM stands for Automated Teller Machine. It is an electronic banking outlet that allows customers to do financial transactions and to manage their card without a human teller. 

In today’s date, the ATMs are the ordinary feature but they have revolutionized how people access their money, providing a convenient and reliable means for individuals to perform essential banking tasks without needing to visit a bank branch. 

Over time, ATMs have evolved. In pursuit of time-saving, today's modern ATMs offer a wide range of services like:

• Cash deposits
• Fund transfers
• PIN change
• Bill payments
• Mobile phone top-ups

and more. Technological advancements have also led to the introduction of cordless ATMs, which allow customers to complete transactions using their smartphones or other mobile 

devices. The main function of ATMs is convenience. That is why they can be found around areas with a lot of people and traffic like shopping malls, restaurants, grocery stores, airports, etc. 

How to use an ATM?

Usually, to use an ATM, customers need a debit or credit card and a Personal Identification Number (PIN) to authenticate their identity and access their accounts. If the customer owns a digital credit card, they have to find a contactless ATM to withdraw money from the card through the digital wallet.

The first ATM

The first ATM was installed in the 1960s by Barclays Bank in London in 1967.  This invention became a significant milestone in banking, as it allowed customers to access cash whenever they wanted - outside of the banking hours. 

Surely, at that time, ATMs were relatively simple, offering only basic cash withdrawal services.

The Security of ATMs

Despite having security features like encryption and PIN protection, ATM usage is not without risks. Fraudulent activities like card skimming, where criminals use devices to capture card information, and shoulder surfing, where they observe a user's PIN entry, are potential threats. 

However, there are some general security recommendations that users can follow to protect their financial data. Some of these include:

Change the PIN code of your card periodically. Don't use numbers that are easy to figure out - like repeating numbers;

Do not write down the PIN code on your card, remember it. If you keep your PIN written down along with your credit card, in the event of a theft, you will make it easier for thieves to withdraw all your available funds;

Do not disclose your PIN to others;

While entering your PIN at an ATM, cover the keypad with your hand;

Regularly monitor the movements of your credit card account in your online banking.

The ATMs play a vital role in banking modernization by offering convenient, 24/7 access to essential financial services. 

However, with the rise of digital and mobile banking, the wide availability of POS, and overall digitalization, the frequency of ATM usage is gradually declining as more people opt for cashless transactions.