Looking back at the ATM's past to find its future

ATMs have been a major staple of banks since their introduction in 1969. The ATM Industry Association (ATMIA) has been supporting the industry since 1997. During a session at the ATMIA conference held from Feb. 8 to 10 in Orlando, Florida, speakers spoke about the past of ATMs and the association and the machine's future.

Mike Lee, CEO of ATMIA moderated the discussion with Tom Harper, CEO of Networld Media Group and founding director of ATMIA, Jeff Matthews, CEO, Grant Victor and chairperson of ATMIA, Chris Chandler, CEO of Perativ and president of ATMIA and David Tente, executive director of USA and Americas, ATMIA.

Harper shared some stories about the founding of ATMIA back in 1997 in a small office with his business partner and father-in-law, Alan Fryrear.

Harper said that the ATMIA was founded by two bold moves. The first was when he sent out faxes to many companies telling them to join the association because "everyone else was joining." The second was when he met Lee at a pub in London and asked him to join.

"After a few years he said yes," Harper said.

Matthews affirmed the strength of the association compared to many other associations, which he said often have the "same old ideas with the same old problems and the same old solutions."

In particular, Kulik and Lee both pointed out the continual importance of cash as a reason for the association and the ATM's strength.

Kulik relayed a story where John Shepherd-Barron, the creator of the ATM, gave a keynote address at ATMIA. When he created the ATM, his colleagues told him that there was no need because cash was going away. Barron in turn said our society would need cash as long as there are taxes.

When looking at the trends in the industry, the speakers identified several key areas: security, the growth of cryptocurrency ATMs and the potential of Next Gen ATMs.

With security, Kulik pointed out that the issue is continually pertinent to the industry as methods such as Jackpotting to illegally access ATM's software become more common. In response, ATMIA has developed several security committees to identify threats and create databases so ATM operators can respond to them.

The panelists also celebrated the growth of the cryptocurrency ATM market and its potential to work together with traditional ATMs.

Matthews in particular said he was "thrilled with opportunities of marrying crypto and cash."

On another level, the panelists also identified the Next Gen ATM project as a major innovation in the field to drive the industry to create more advanced ATMs that offer more than just cash dispensal.

"The Next Gen ATM will redefine customer experience, offer more value to our consumers," Matthews said.

Lee also said that ATMs would continue to flourish in the "phygital" world by offering both physical and digital services.

"We will see innovation around all ideas of cash ecosystem, to drive cost reductions and keep the core features going," Chandler said. By doing this, operators would in turn be able to add new features to have ATMs act like a "kiosk" to offer more services for bank customers.

Lee said the ATMIA's goal is to have 1 million Next Gen ATMs by 2025 and for it to go beyond just banks to retail.

Matthews said in time "retailers will want same functionality that banks can offer."

The panelists all emphasized that the future of the ATM is bright and that the industry is more than up to the task to innovate and compete in this new world.