The story behind the world’s first ATM
<p>Of all the baths that have been taken in the history of the world, few have had the effect on our spending habits as the one taken by John Shepherd-Barron in the sixties.</p>
<p>It is said that during this particularly inspired soak Mr Shephard-Barron had a moment of inspiration when he thought to himself – well, if vending machines have the ability to dispense chocolate bars, why couldn’t they dispense my cash?</p>
<p>Mr Shephard-Barron pitched the idea for his machine to Barclays, a London bank, who absolutely loved it and the first model was installed at a Barclays’ London outlet in 1967.</p>
<p>Although, it should be noted that the first ATM was quite different to the ones we know and recognise today. The first ATM used cheques that were impregnated with a radioactive isotope carbon 14 to initiate a withdrawal, as the original machines predated the use of magnetic coding for modern ATM cards.</p>
<p>Oh yes, and another difference, the original ATM didn’t charge a fee to withdraw your money - now wouldn't that be nice!</p>
<p>Mr Shepherd-Barron also thought up the idea for a personal identification number or PIN, which was revised by his wife Caroline who changed the original idea of a six digit identification number to four digits as it would be easier number for someone to remember off the top of their head.</p>
<p>But perhaps the most startling thing about the whole story is that Mr Shephard-Barron never patented his invention, decided instead to try and keep it a trade secret.</p>
<p>It is said that Mr Shephard-Barron was concerned after consulting with lawyers that, “applying for a patent would have involved disclosing the coding system, which in turn would have enabled criminals to work the code out.”</p>
<p>Mr Shepard-Barron would eventually be awarded an OBE in 2005 for his efforts.</p>
<p>Today there are millions of ATMs spread around the world, and while their use has admittedly declined somewhat over the years as people increasingly adopt credit cards and other contactless paying methods<a href="/finance/money-banking/2015/11/is-australia-becoming-cashless/"></a> as their main transaction tools, ATM machines still remain an important part of modern society and a luxury that we perhaps take for granted sometimes.</p>
<p>So the next time you’re withdrawing some cash from your local ATM, spare a thought for Mr Shephard-Barron who’s moment of inspiration (and cleanliness) would forever change the way modern society accessed, used and understood the movement of money.</p>
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