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The First Automatic Teller MachineClient: South Carolina National Bank SIR’s research for South Carolina National Bank (SCNB) helped to put cash on every street in America. While there are different claims to which bank had the first automatic teller machine (ATM) in service, there is little doubt that SCNB was among the first to claim this title, thanks, in part, to SIR's new product development research. The first ATMs were off-line machines, meaning money was not automatically withdrawn from an account. The bank accounts were not, at that time, connected by a computer network to the ATM. Understandably, banks were very selective about those to whom they offered ATM privileges, giving them only to credit card holders (credit cards were used before ATM cards) with good banking records. The biggest challenge was not technology, however, but rather consumer acceptance -- would consumers try and, more importantly, trust this invention? SCNB turned to SIR to assess this issue. SIR launched an extensive new product demonstration test. Not in bank lobbies, but rather off the back of pick-up trucks at county fairs. After a summer of driving around the southeast, SIR's overwhelming conclusion was that consumers would not only use ATMs, but some would even prefer them over tellers. The rest, as they say, is history. |
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