This project, funded by the British Academy (LRG-41806), seeks to contribute to the growing field of study in the use of automation in banking from an historical perspective. Automated Teller Machines were chosen as the subject as they offered an opportunity to explore both technological and strategic aspects of retail banking – an area comparatively neglected in the discussion of post-1945 British economic performance. Technologically, ATMs were originally a British innovation but U.S. and German manufacturers took the lead as ATMs became a global technology. Throughout this process it is unclear whether financial intermediaries ever owned property rights on key technological developments.
[img_assist|nid=56|title=Docutel ATM|desc=This is the Docutel cash dispenser from US patent US3761682|link=none|align=center|width=245|height=325]
Neither is it clear how technology modified the strategic capabilities of banks to compete in retail finance. The evolution of the ATM illustrates how banks adopted on-line, real-time computing for the entire branch network and highlights the role of network externalities in financial markets. From a business history perspective, the ATM epitomises a shift in bank strategy, namely how applications of computer technology moved from being potential sources of competitive advantage to being a minimum requirement for effective competition in retail finance. The ATM also summarises how capabilities to compete developed in the move from a traditional single point of contact with customers, the branch, towards multi-channel delivery strategies. This organisational learning that took place during the implementation and growth of ATM networks that is undoubtedly essential in understanding the adoption of subsequent technological developments, including for example, internet banking).