The ATM at Age Twenty: A Productivity Paradox

• Published in: Global business and organizational excellence 1990-07, Vol.9 (3), p.273
• Main Author: Haynes, Ray M
• Format: Article
• Language: English
• Subjects: Automated teller machines; Bank automation; Banking industry; Cost analysis; Efficiency; Productivity; Tellers
• ISSN: 1932-2054; 1932-2062

When the automated teller machine (ATM) was first introduced over 20 years ago, the banking industry believed that an investment in such a machine would pay off handsomely in large productivity increases stemming from reductions in transaction processing costs. Although the ATM has apparently failed to achieve the potential productivity expected with respect to transaction processing, it has been instrumental in shaping the public's acceptance of computerized delivery mechanisms. Herein lies the ATM's productivity paradox: Localized disappointments in the banking industry have given way to global benefits across the entire service sector of the economy. While the resulting total productivity gains of ATMs may be difficult to quantify, the quality and convenience of banking services appear to have universally improved. The ATM may not truly be a causal factor in the trend toward a paperless environment, but it must be considered a positive influence on the information-based society of the future.