ATMs & its use in E business

VIDYA THIMMIAH SUMISHA RAINA KARANJEET SHARMA ABHISHEK JOHN JERIN THOMAS

Automated Teller Machine

Clients of a financial institution Access to financial transactions in a public space Without the need for a cashier, human clerk or bank teller Also known as : ATM machine, automated banking machine, cash dispenser, Cash point, cash machine or sometimes a hole in the wall

ATM The History

In 1939 - Luther Simjian patented an early and not-so-successful prototype of an ATM 1960 Bankograph-National City Bank, NY installed a 1967 First Cash Dispenser installation Barclays Bank ,London 1968 Card-eating machine Barclays and a few other banks 1969 First use of ATM magstripe cards. * Docutel - Docuteller machine at New York's Chemical Bank * Ad campaign our branch will open its doors at 9:00 a.m.and we'll never close again!. * Donald C. Wetzel *Smithsonian Museuem - inventor of the ATM

 1971 First true bank ATMs , Docutel 1973 Proliferation begins. Docutel and Diebold 1974 - On-line ATMs introduced. The newly connected machines soon led to the modern-day networks were all familiar with. 1988-1994 - Deposit of Cash Withdrawal of Cash 1995- 1999 - Mini statement Balance enquiry 2000-01- Coupon dispensing 2002-04 Ticket booking- railway and airlines 2004-06 Bill payment, Mobile recharge

Types Of ATMs
Two types of ATMs are on-premise and off-premise. On-premise: Located at the bank. Extension of banks operations Off-premise: Located at different areas. Linked to the interbank network. Operated by private businesses.

Biometric ATM Uses fingerprints instead of PIN. Targets people who are illiterate/semi-literate. Choose the amount they want with suitable pictures on the screen.

Bank of America
Bank of Americas 12.6 million online banking customers are 27% more profitable than their offline counterparts. A.T.M.s replicate services offered on a bank's Internet site. Envelope-free deposits Cash deposits Check account balances and transfer funds. According to Pew Internet and American Life Project, a research organization based in Washington, online banking was the fastestgrowing activity among Internet users in the last 5 years. 44% of online users in the United States, did their banking online.

Future Adoption of ATMs

Multivendor ATM Technology - It is a revolutionary concept to execute a single software application in the entire ATM network. These multivendor applications can run on any hardware platform. Rural ATM Network in India (Biometric ATM)- To explore the rural market, biometric technologies were adopted in India. This facilitated the illiterate rural poor to use ATMs. Multilingual ATM- Installation of multilingual ATMs has also entered pilot implementation stage for many large banks in the country.

Multifunctional ATMs
Multifunctional ATMs are yet to be introduced by most banks in India, but have already been recognized as a very effective means to access other banking services.

Facts and Figures

PNB installed its first biometric ATM at a village in UP to help illiterate and semi-illiterate customers. By 2010, the bank plans to cover 30,000 villages, 15 million households, and 75 million people by using business facilitator technologies. As per Business Line, penetration of ATMs in village areas is quite low. Low transaction volume is making it unviable. Procurement price of ATMs depending on the order - varies between Rs. 4-5 lakhs and Rs. 6-7 lakhs per ATM. Thrissur based Catholic Syrian Bank has installed solar powered biometric ATMs at Ozhur village of Kerala to provide banking facilities to under-banked areas in secure and cost-effective manner.

 The biometric ATM has been developed by Vortex Engineering Pvt. Ltd. in collaboration with IIT Madras . Additional features like weather information, commodity price, and stock prices can be integrated into the Vortex Gramateller ATM. Managerial and Technical Benefits of Adopting MVS MVSreduces Operation and Relative cost of banking transaction Maintenance cost which was high through different modes in traditional ATMs. Cost Per It facilitates independent Channel Transaction decision making for the banks in (Rs.) opting for hardware vendors. This Physical Branch 100 had reduced drastically the cost of Postal 40 ownership of Telephone 18 ATMs for the banks. Deployment ATMs 18 of MVS had reduced infrastructure Internet 12 management.

challenges
Security, as it relates to ATMs, has several dimensions: Physical Transactional secrecy and integrity Customer identity integrity Device operation integrity Customer security Card fraud Service network failure Bad banking services

Future trends
Mobile banking and payments Video banking Advance self service Fewer bank branches more atms Opportunities for technological advancement Go for gold (gitanjali)

Conclusion
Reduced cost of transactions. Internet enabled ATMs are easier to maintain- connected to vendors central monitoring system. Increasing reach and presence. Requires more number of High end technology ATMs(Biometric, Multilingual) to reach out to rural people. Diversity in India a constraint to expansion- Different regions have different languages (Multilingual ATMs). Need to increase penetration in village areas through more number of biometric ATMs.

Sources
http://www.thehindubusinessline.com/industryandeconomy/banki ng/article2484893.ece?homepage=true&ref=wl_home www.financialexpress.com/news/indianatm-industry-is-the-fastestgrowing-inthe-apac-region/62134/1 http://www.atmia.com/ClassLibrary/Page/News/files/RBR%20Pre ss%20Release.pdf