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Is the Future of the ATM Past?

In: Financial Markets and Organizational Technologies

Author

Listed:
  • Bernardo Bátiz-Lazo

    (Leicester University)

  • Claudia Reese

    (University of Nottingham)

Abstract

Greater use of credit and debit card payments as well as the mirage of the ‘cashless society’, led some North American and British observers to consider automated teller machines (ATMs) a ‘passing technology’.1 Not so (or at least not in the foreseeable future) is the unanimous conclusion of 20 British managers in financial and non-financial intermediaries with direct responsibilities in self-service technology (and management of ATM fleets), who were asked to opine on that sentiment between March and January 2008. Although the use of cash has decreased to ‘historical’ low levels, its use remains steady while the ATM remains the undisputed vehicle for people to acquire cash (as opposed to transactions at the bank retail branch or ‘cash back’ at food retailers).2 One interviewee opined: When I joined the bank [in 1973], I was against ATMs. We didn’t know that ATMs were the future. I thought the technology was a little early and thought we could use retail establishments as the vehicle to provide cash to customers. Supermarkets in the United States at that time used to have excess cash as they used to cash checks for people. The question was how to provide on-line, real-time support. (Interview, 8 September 2009)

Suggested Citation

  • Bernardo Bátiz-Lazo & Claudia Reese, 2010. "Is the Future of the ATM Past?," Palgrave Macmillan Studies in Banking and Financial Institutions, in: Alexandros-Andreas Kyrtsis (ed.), Financial Markets and Organizational Technologies, chapter 6, pages 137-165, Palgrave Macmillan.
    • Handle: RePEc:pal:pmschp:978-0-230-28317-6_6
    DOI: 10.1057/9780230283176_6
    as

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    References listed on IDEAS

    as
    1. David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-337, May.
    2. Isabelle Huault & V. Perret & S. Charreire-Petit, 2007. "Management," Post-Print halshs-00337676, HAL.
    3. Richard J. Sullivan, 2007. "Risk management and nonbank participation in the U.S. retail payments system," Economic Review, Federal Reserve Bank of Kansas City, vol. 92(Q II), pages 5-40.
    4. Liebowitz, S J & Margolis, Stephen E, 1995. "Path Dependence, Lock-in, and History," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 11(1), pages 205-226, April.
    5. Alfred D. Chandler, 1992. "Organizational Capabilities and the Economic History of the Industrial Enterprise," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 79-100, Summer.
    6. Liebowitz, S J & Margolis, Stephen E, 1990. "The Fable of the Keys," Journal of Law and Economics, University of Chicago Press, vol. 33(1), pages 1-25, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. As cash becomes quaint, are ATMs on path to obsolescence?
      by Bernardo Batiz-Lazo, Professor of Business History and Bank Management at Bangor University in The Conversation on 2015-06-16 15:08:02
    2. Must we question corporate rule?
      by bbatiz in NEP-HIS blog on 2013-01-17 17:12:01

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    Cited by:

    1. Toni Calugaru & Cristian Rebegea, 2019. "Considerations Concerning The Main Existing Payment Methods In The Banking System," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 1(47), pages 29-38, November.

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    More about this item

    Keywords

    Path Dependence; Financial Intermediary; Personal Identification Number; Food Retailer; Building Society;
    All these keywords.

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • N24 - Economic History - - Financial Markets and Institutions - - - Europe: 1913-
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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