On this post, i will give you a detailed write up on atm and its uses and also the importance of atm machine to the banking industry.
Atm have really helped the banking industry a lot and in terms of money withdrawal which have drastically reduced the number of people or bank customers in the banking hall. When you talk about atm and its uses, this entails the usefulness of the automate teller machine to the banking industry and the country as a whole.
IIt not just the uses of atm as the uses and benefits come hand in hand. And this is what i have talked about if you continue to read on, but i didn’t stop just on atm and its uses but also talked about the importance of atm machine.
Before we go further into atm and its uses, let’s first know the atm definition and how it started.
An automated teller machine (ATM) is an electronic telecommunications device that enables customers of financial institutions to perform financial transactions, such as cash withdrawals, deposits, transfer funds, or obtaining account information, at any time and without the need for direct interaction with bank staff.
The first ATM appeared in London in 1967, and in less than 50 years, ATMs had spread around the globe, securing a presence in every major country and even tiny little island nations such as Kiribati and the Federated States of Micronesia. Many ATMs also allow people to deposit cash or cheques, transfer money between their bank accounts, top up their mobile phones’ pre-paid accounts or even buy postage stamps.”
Atm And Its Uses
You maybe asking about atm and its uses or the usefulness or uses of the automated teller machine, below are the list of them.
1. Cash Withdrawal
This is the major uses of atm, to withdraw cash easily. Thanks to the automated teller machine you can withdraw cash at your convenience 24/7 avaliable to you. Because of the cash withdrawal, it have reduced too much work for banks in terms of assigning cash to its customers inform of withdrawal.
Atm is all over the world including the developing countries and it added a huge benefit to the banking system.
2. Balance Inquiry and Money Transfer
Another atm and its uses is the provision of easy balance inquiry and money transfer. Years back, if a bank customer wants to check his or her account balance or perform money transfer, one needed to go into the bank and perform such transaction. But thanks to automated teller machine is no longer like that and to make it even better you can do this right from your mobile phone.
Through atm and mobile banking, you can check your account balance, statement of account, transfer money to another, pay bills etc.
3. Encourages Cashless Society
In many countries, there is a policy of cashless in a society, reason being that it reduces fraud and debt in a society or a country. Cashless policy cannot function without the use of the atm or mobile banking. You withdraw the money that will be adequate for you during the day or a week.
Benefits of Using Atm
Below are the benefits derived from using the atm;
- As ATM function 24*7, one do not have to worry about National holidays or working hours. What if banks are on strike, One can just get into ATM and get his amount withdrawal.
- ATM’s are available almost every part of our country so that one need not worry about finding one as you may find at least one ATM with in 3 km of your area.
- One can ditch the long Bank ques which become a nightmare for an account holder to withdraw CASH
- In order to get your cash withdrawal, The ATM does need to be of your bank only, You may use any other banks ATM to withdraw your amount.
So the above are the major atm and its uses, now let’s take a look at the importance of atm machine.
Importance of Atm machine
First i want you to know that there is a similarity between atm and its uses and the importance of atm machine. Let me start from the first importance which is almost the same with the usefulness or uses of the automated teller machine.
- The first importance of atm is that it encourages cashless policy which helps to reduce theft in a country.
- Another importance Atm machine is that it helps the banking industry by reducing too much work on the assigned bankers handling cash withdrawal or money transfer.
- ATMs are a convenience to consumers needing quick access to cash, and businesses that carry the machines, such as stores and restaurants, are frequently the first place that money is spent. Researcher Harris International Marketing found in 2011 that convenience store retailers typically see the average amount spent increase by 65 percent after customers begin using an in-store cash machine, while spending in the vicinity of ATMs declines dramatically following their removal. Lenpenzo’s data indicates that 75 percent of money dispensed via ATMs at nightclubs, on average, is spent on the premises.
- Reduced Processing Issue: According to the ATM Industry Association, 84 percent of global merchant transactions involved cash as of 2012, despite the rising use of debit and credit cards used with point-of-sale technologies. For some small businesses that cannot afford tech upgrades or to pay processing fees charged by debit and credit card providers, ATMs help keep costs down by encouraging cash purchases. There is also processing time saved by not having to verify the identity of those using checks and credit cards. The tradeoff, according to 2012 surveys by Javelin Strategy and Research, is that retail purchases made with cash are generally of lower amount than those made with debit and credit cards.
The above are the importance of atm machine which will help you to understand or have a knowledge on why atm machine is introduced into the banking industry.
That’s all i have on atm and its uses and also the importance of atm machine to the banking industry. Please if you have more to add, we will appreciate it a lot more.