A few years ago, the only way to get cash was to shuffle into the city and take a trip to your financial institution, which was inconvenient for villagers and full-time employees.
But today, consumers are accustomed to seeing ATMs in grocery stores, gas stations, and even the local pub.
Needless to say that the Automated Teller Machine, or ATM, is perhaps the most significant banking breakthrough.
ATM is an electromechanical machine that comprises automated banking portals that enable the client to complete a seamless transaction without the support of a branch representative or teller.
Most ATMs accept a debit or credit card to withdraw money. ATMs are more than just places to get cash these days.
Some ATMs allow you to transfer funds between accounts, purchase stocks, check account balances, and even purchase stamps.
These functionalities are accessible with a single debit or credit card and a personal identification number. Here are some essential advantages rendered by ATMs:
Table of Contents
- 1. Convenience And Accessibility
- 2. Offer 24×7 Service
- 3. Unlimited Cash Transaction
- 4. Reduce Bank’s Workload
- 5. Open Fixed Deposit Account
- 6. Error Free
- 7. Fixed Customer Response
- 8. Deposit And Transfer Money
- 9. Apply For Personal Loan
- 10. Beneficial For Travelers
- 11. Details Of Transaction
- 12. Recharge Your Mobile
- 13. Privacy
- 14. Staff less Banking
- 15. Minimizes Transactions Cost
- 16. Serve An Important Function In Crisis
- 17. Offer Financial Inclusion
1. Convenience And Accessibility
Customers can access their accounts through ATMs nationwide and outside of it.
These money machines are now housed in convenient locations such as airports, railway station, and so on, rather than just at the bank’s facilities.
ATMs are installed offsite (away from bank premises) and on location (within bank premises). ATMs enable flawless banking services, withdrawal mobility, and accessibility.
2. Offer 24×7 Service
Electronic Machines access for withdrawing money is available 24 hours a day, seven days a week, with no set operating hours.
Consumers have constant access to their bank accounts and can withdraw cash whenever possible or in an emergency.
ATMs are the perfect idea because they are responsive even on Sundays and midnight, which is not the situation with bank branches.
3. Unlimited Cash Transaction
Unlike debit cards, banks offer unlimited cash transactions through ATM cards within a month with no extra fees.
Having an ATM card allows you to avoid the cash withdrawal transaction restriction, which is a significant advantage of using surcharge-free ATMs rather than a debit card.
4. Reduce Bank’s Workload
ATM machines are essential in minimizing the banking industry’s work pressure.
Customers have been comforted because they can now obtain various banking services using ATMs rather than visiting bank branches.
Clients are not asked to stand in long lines or fill out numerous forms to obtain immediate withdrawal and deposit services. It alleviates work pressure on bank employees and increases operational flexibility.
5. Open Fixed Deposit Account
You can quickly open a fixed deposit with your bank using an ATM. Select ‘Open Fixed Deposit’ from the ATM menu, choose the duration for which you want to set up an account, enter the amount, and verify the remaining specifics.
6. Error Free
ATM operations are flawless. This cutting-edge technology includes a computer program endorsed by custom-designed software and thousands of quality controls.
7. Fixed Customer Response
The response of the automated teller machine to the customer is fixed. The reasonable measures in which the transactions are to be conducted are scheduled.
Furthermore, the operation must be completed within a set timeframe. The transaction is canceled if the customer does not react within that time.
8. Deposit And Transfer Money
Your ATM card not only permits you to withdraw cash but also allows you to deposit money in a deposit machine without contacting your bank.
Suppose you do not have access to the internet. In that case, you can transfer the amount through ATMs by inserting your ATM card, selecting the transfer option, and entering the beneficiary’s information for a successful payment transfer.
Money transfers via ATM are possible if the beneficiary has a bank account with the same bank.
9. Apply For Personal Loan
You are not required to visit a bank branch or communicate with a bank teller to obtain a small ticket for a personal loan.
Some private sector banks now provide pre-approved personal loans to customers through ATMs as the step of disbursement.
Advanced analytics determine the loan amount, which considers the customer’s transaction records, current account balance, salary credits, and credit and debit card repayments details.
10. Beneficial For Travelers
ATMs are handy for travelers. Recall the days when you had to carry vast amounts of money when traveling.
Thank god, now you merely have to hold an ATM, which exists in almost every city in the country. And, what’s best- it alleviates problems such as the risk of being stolen.
Recognizing where the closest ATM is to your lodging will help you in financial transactions.
If you want to check your bank balance but your phone doesn’t have a signal, you can take your debit card to a cash machine and continue with your daily budget plan.
11. Details Of Transaction
Everyone is aware that requesting a bank statement may result in fees. Thus, using one’s ATM Card, one can retrieve the mini-statement from the ATM.
It is free, and receiving a mini-statement does not count against the number of free ATM transactions permitted by the bank.
12. Recharge Your Mobile
ATMs offer prepaid services that allow you to recharge your or your friends’ phones. Select the ‘Mobile Recharge’ feature, enter the mobile number, and verify the information.
ATM machine range of services with secure transactions. Nobody can see how much you have taken out, unlike at the cash register. ATMs are assembled in a small cabin with a shut-door system.
14. Staff less Banking
ATMs have whittled down the demand for cashiers, which has benefited banks in the big scheme of things.
Banks now keep investing in machines rather than opening new branches or hiring new employees.
It is much easier to set up a machine in a shopping mall rather than open a new branch.
15. Minimizes Transactions Cost
Because all transactions are processed and surveilled using computer-controlled automated systems, ATMs have reduced the need for a workforce.
Work operations require less human involvement, lowering overall costs. It aids banks in cost control because, in the past, most of their workforce had to handle cash deposits and withdrawals.
With the introduction of ATMs, this work has decreased significantly, allowing banks to save money by not having to retain staff.
16. Serve An Important Function In Crisis
ATMs are critical in crises. They have the edge of continuing to operate even when businesses close during natural catastrophes, health crises, or economic downturns.
Traditionally, during times of crisis, the request for hard cash rises. This is because people feel safer when they have control over their wealth.
The truth that Automated Teller Machines can be depended on in an emergency demonstrates how important they are in uncertain and regular periods.
17. Offer Financial Inclusion
Financial institutions can use ATMs to provide banking services in low-income nations where banks are not widely used.
Interactive Automated Teller Machines, which can discharge cash and accept deposits, contribute to increased financial literacy and ease access to formal financial services in rural areas.
Two-thirds of the world’s population is dependent on hard currency. The majority of these people live in developing countries, where the majority of them are unbanked.
Now that we have come to the end of the advantages of ATMs, did you know that there are a few disadvantages associated with using ATN? Everything comes with pros and cons, but that is a discussion for another day!
(Last Updated on August 30, 2022)