In an economy where cash is king, ATMs are taking on a greater role in addressing people’s financial needs. Retail Banking Research shows that the number of ATMs are increasing globally and is expected to grow to 3 million by 2015, with the majority of the new installations planned in Asia, Africa and the Middle East. In the wake of this rapid lionization of ATM's across the world, it is precursory to understand the reasons behind this rising popularity of the Automated Teller Machine(ATM).
An ATM is an electronic machine that allows the customer to perform various financial operations, without any human intervention. All one needs is a magnetic stripped ATM card and a PIN number. Ever since its introduction in the late 1960's ATM's have risen to become a basic necessity. Imagine going on a tour without an ATM card, carrying all the cash. Or for that matter going shopping on a lazy Sunday with all the cash stuffed in your wallet.
ATM's have succeeded at delivering customer convenience which is perhaps the most basic element of today's delivery model in any field. Furthermore because of its low cost, ATM's can be installed at any location other than banks or its branches, which has further increased customer convenience. ATM's are now seen to be more than mere cash dispensing machines. Customers use ATM's to recharge their mobile phone pre-paid connections, pay their utility bills, even mutual fund transactions - making them at par with flexibility given in Internet banking, but more secure.
Having said this, there have been a lot of security issues with ATM card thefts, identity thefts and other frauds which poses a serious concern for the customers. Security measures at banks can play a critical, contributory role in preventing attacks on customers. These measures are of paramount importance considering the vulnerabilities and the rapidly expanding customer