ATM vs Bank Clerk

One of  the earliest uses of computers was in the banking industry. Initially a typically bank had a central computer centre which processed the data from various branches. For example , the withdrawal/deposit slips collected by a branch during the day would be forward to the computer centre when the branch closed to the public. The customers' accounts would be updated and a report on the current status of the accounts would be prepared for the use the next banking day.

The two most common used computerized banking system are the ATM's and banking clerks.

The clerk/teller enters transactions directly via a terminal, which is connected to the computer which can access the files of customers' accounts. Accounts can be queried and/or updated in a few seconds. Thus making the service much faster and easier. For example, suppose a customer name Kieth Clark wishes to make a withdrawal of $100.00 from his account numbered 76543210. The clerk would type the account number on his/her terminal. The computer would then accept this number and retrieve Kieth Clark banking record from its file. With the information displayed on the screen the clerk can carry out the necessary transaction. From this we can identify some components of a computerized banking system. At the centre of the system is a computer whose memory contains the computer program which accept directions from the clerk and responds to those directions, usually by accessing the customers' accounts.

What if customers can access their accounts without going to a clerk in the bank or need a clerk to do so?

This is where the ATM is considered a major competitor for the bank clerks. Also known as the automated telling machine (ATM), is a computer-controlled device at which a customer can make withdrawals or deposits, check the balance in his/her account or even request an appointment with the loan officer, all without involving a human operator. In order to use this system, a customer is issued with a plastic card which is coded with his/her name and account number, also known as a ATM card. With this the ATM functions both as an input and output device. It can accept data from the customer and it can be used by the computer to display information. From the bank's point of view, an ATM makes the customer do the work normally done by a clerk, this reduces the need for a clerks. For the customers, the machines are available for 24 hours a day. In other words a customer can therefore choose his/her banking hours, rather than be restricted to the times when the bank is open to the public.

Banking relies so heavily on computers that it is difficult to imagine how the industry could survive without them. Or with so much popular use of ATM is there still a need for clerks?

reference: An Introduction to Computer Studies by Noel Kalicharan