Seminar report

WOLAITA SODO UNIVERSITY

SCHOOL OF INFORMATICS

DEPARTMENT OF INFORMATION SYSTEMS

A Seminar Report

On

Automatic Teller Machines

BY

ASCHALEW TAREKEG

WOLAITA SODO ETHIOPIA

Feb 26 2024 E.C
Seminar report

Table of Contents
TOPIC ONE ............................................................................................................................................... 1

Automatic Teller Machines........................................................................................................................ 1

1.1 Introduction ...................................................................................................................................... 1

2. How that technology was developed and who are contributes automatic teller machine .................. 1

3. Protocols of automatic teller machines .............................................................................................. 1

4. ADVANTADE AND DISADVANTAGES OF AUTOMATIC TELLER MACHINE .................... 2

4.1 Advantages of automatic teller machine ...................................................................................... 2

4.2 Disadvantages of automatic teller machines ................................................................................ 3

5. Area of applications Area automatic teller machine .......................................................................... 4

6.Summary ............................................................................................................................................. 5

7. REFERENCE..................................................................................................................................... 5
Seminar report

TOPIC ONE

Automatic Teller Machines

1.1 Introduction
Automatic Teller Machines (ATMs) are electronic banking devices that allow customers to perform
financial transactions without the need for a human bank teller. ATMs are typically located in public
places such as banks, shopping centers, airports, and convenience stores, providing convenient access to
banking services 24/7.

ATMs offer a range of services, including cash withdrawals, deposits, balance inquiries, fund transfers,
bill payments, and more. Customers can access their accounts by inserting a bank card or entering their
account information, along with a personal identification number (PIN) for security purposes.[1]

2. How that technology was developed and who are contributes automatic teller
machine
The development of Automatic Teller Machines (ATMs) can be traced back to the late 1960s and early
1970s. The first ATM was introduced by Barclays Bank in London in 1967, and it allowed customers to
withdraw cash from their accounts using a special paper voucher. This early version of the ATM was
not as sophisticated as modern ATMs, but it laid the foundation for the technology we use today.

 IBM: IBM played a significant role in developing the technology behind ATMs, including the
hardware and software systems that power these machines.

 NCR Corporation: NCR is a leading provider of ATM machines and has been involved in the
design and manufacturing of ATMs for many years.

 Diebold Nixdorf: Diebold Nixdorf is another major player in the ATM industry, known for its
innovative ATM designs and technology solutions.

 Banks and Financial Institutions: Banks around the world have invested in ATM technology
to provide their customers with convenient access to banking services.

 Payment Networks: Companies like Visa, Mastercard, and other payment networks have also
played a role in the development of ATM technology by enabling secure transactions and 3.
Protocols of automatic teller machines

The study was cross sectional study conducted in four purposively selected locations in Dhaka
that have high concentration of commercial banks namely Mohammadpur, Gulshan, Bonani
and Uttara areas. The sample size was made up purposively selected one hundred and eighty-
two (182) respondents for survey and twelve for In-depth interviews (IDIs) respectively. With
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this, at least forty-six respondents were selected from each location for survey and two for in-
depth interviews. The main criteria for inclusion of the respondents for the study were the
possession and utilization of ATM card for purpose of monetary transactions.[2]
Automatic Teller Machines (ATMs) use various protocols to facilitate communication between the
ATM machine and the banking network to process transactions securely and efficiently. Some of the
key protocols involved in ATM transactions include:

 ISO 8583: This is a standard for financial transaction messaging that defines the format for
messages exchanged between devices such as ATMs, point-of-sale terminals, and banking
systems. ISO 8583 ensures that data is transmitted securely and consistently across different
networks.

 ATM Application Layer Protocol (AAL2): AAL2 is a protocol used in ATM networks to
manage communication between devices at the application layer. It helps to establish
connections, exchange data, and manage transactions between the ATM machine and the
banking network.

 Transaction Security Protocol (TSP): TSP is a security protocol used to encrypt and protect
sensitive information transmitted during ATM transactions. It ensures that data such as card
numbers, PINs, and transaction details are secure from unauthorized access or interception.

 X.25 Protocol: X.25 is a packet-switching protocol that is commonly used in ATM networks to
transmit data between devices. It provides reliable and efficient communication by breaking
data into packets and reassembling them at the destination.

 TCP/IP Protocol: The Transmission Control Protocol/Internet Protocol (TCP/IP) is another

common protocol used in ATM networks to facilitate communication between devices over the
internet or private networks. It ensures that data is transmitted accurately and securely between
the ATM machine and the banking network.

These protocols work together to ensure that ATM transactions are processed securely, efficiently, and
reliably. By following industry standards and using established protocols, ATMs can provide customers
with a seamless banking experience while maintaining the integrity and security of their financial
transactions.

4. ADVANTADE AND DISADVANTAGES OF AUTOMATIC TELLER

MACHINE

4.1 Advantages of automatic teller machine

Automatic Teller Machines (ATMs) offer numerous advantages to both customers and banks, including:

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 Convenience: ATMs provide customers with 24/7 access to banking services, allowing them to
withdraw cash, deposit checks, transfer funds, and check account balances at their convenience
without having to visit a physical bank branch.

 Accessibility: ATMs are widely available in various locations, including bank branches,
shopping malls, airports, and convenience stores, making it easy for customers to access their
money and conduct banking transactions wherever they are.

 Time-saving: Using an ATM is typically faster than waiting in line at a bank branch, as
customers can quickly perform transactions such as cash withdrawals or deposits without the
need for human assistance.

 Privacy: ATMs offer a level of privacy for customers conducting financial transactions, as they
can input their PIN code and complete transactions without the need for direct interaction with
bank staff or other customers.

 Cash availability: ATMs provide a convenient way for customers to access cash outside of
regular banking hours, especially in locations where banks may be closed or not easily
accessible.

 Account management: ATMs allow customers to perform various banking tasks such as
checking account balances, printing mini-statements, changing PIN codes, and transferring
funds between accounts.

 Reduced workload for bank staff: By enabling customers to perform routine transactions
independently, ATMs help reduce the workload on bank staff, allowing them to focus on more
complex customer needs and providing personalized services.

 Cost-effective: ATMs help banks reduce operational costs by automating routine transactions
and reducing the need for physical bank branches in some locations.

Overall, ATMs play a crucial role in modern banking by providing customers with convenient access to
essential financial services and helping banks improve efficiency and customer service.

4.2 Disadvantages of automatic teller machines

While ATMs offer numerous advantages, they also have some disadvantages, including:

 Security concerns: ATMs can be targets for fraud, skimming, card trapping, and other criminal
activities that can compromise customers' sensitive financial information and lead to
unauthorized transactions.

 Transaction fees: Some ATMs charge fees for withdrawals or balance inquiries, especially if
the customer is using an ATM from a different bank or located in a remote area. These fees can
add up over time and increase the cost of using ATMs.

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 Limited services: While ATMs provide basic banking services such as cash withdrawals and
deposits, they may not offer more complex transactions or personalized services that customers
may require, such as opening accounts or applying for loans.

 Technical issues: ATMs can experience technical glitches, outages, or maintenance problems
that can disrupt service and prevent customers from accessing their funds or completing
transactions.

 Cash availability: ATMs may run out of cash, especially in high-demand locations or during
peak times, which can inconvenience customers who need to withdraw money urgently.

 Accessibility challenges: Some customers, such as elderly individuals or those with disabilities,
may face difficulties using ATMs due to small screens, complex interfaces, or physical barriers
that limit their access to banking services.

 Dependency on technology: As ATMs rely on electronic systems and networks to function,

disruptions in technology or power outages can affect their operation and prevent customers
from accessing their accounts or conducting transactions.

 Lack of human interaction: While ATMs offer convenience and privacy, they lack the
personalized service and assistance that customers may receive from bank staff in a physical
branch, which can be a disadvantage for those who prefer face-to-face interactions.

Overall, while ATMs provide valuable benefits in terms of convenience and accessibility, it is essential
for customers to be aware of the potential drawbacks and take precautions to protect their financial
information and ensure a smooth banking experience.

5. Area of applications Area automatic teller machine

Automatic Teller Machines (ATMs) have a wide range of applications across various industries and
sectors. Some of the key areas where ATMs are commonly used include:

 Banking and Financial Services: ATMs are primarily used by banks and financial institutions
to provide customers with convenient access to banking services such as cash withdrawals,
deposits, fund transfers, balance inquiries, and bill payments. ATMs help banks reduce
operational costs, improve customer service, and extend their reach to remote or underserved
areas.

 Retail and Shopping: Many retail businesses, including supermarkets, convenience stores, and
shopping malls, have ATMs on their premises to offer customers the option to withdraw cash
for purchases. Having an ATM on-site can attract more customers and increase sales by
providing a convenient payment option.

 Transportation: ATMs are often located at airports, train stations, bus terminals, and other
transportation hubs to provide travelers with access to cash for tickets, transportation services,

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food, and other expenses. ATMs in transportation facilities help passengers manage their
finances while on the go.

 Hospitality and Entertiment: Hotels, casinos, resorts, and entertainment venues often have
ATMs available for guests to withdraw cash for dining, shopping, gaming, and other activities.
ATMs in these establishments enhance customer experience and increase convenience for
patrons.

 Government Services: Some government agencies and public institutions install ATMs to
facilitate payments for services such as taxes, fees, fines, permits, and licenses. ATMs can
streamline payment processes, reduce queues, and improve efficiency in government
transactions.

 Healthcare: Hospitals, clinics, pharmacies, and healthcare facilities may have ATMs on-site to
allow patients and visitors to access cash for medical expenses, prescriptions, parking fees, and
other healthcare-related costs. ATMs in healthcare settings provide a convenient payment
option for patients and their families.

Overall, ATMs play a crucial role in providing convenient access to financial services and cash
transactions across various industries and sectors. Their widespread availability and ease of use make
ATMs an essential tool for individuals and businesses alike.

6.Summary
Artificial neural networks (ANNs) are versatile and powerful tools used in a wide range of applications
across fields such as image recognition, natural language processing, healthcare, finance, autonomous
vehicles, marketing, robotics, gaming, energy forecasting, and cybersecurity. ANNs can learn complex
patterns from data and make predictions or decisions, making them valuable for tasks like image
analysis, disease diagnosis, stock price prediction, customer segmentation, robot control, game AI,
energy forecasting, and cybersecurity defense. With ongoing advancements in deep learning techniques
and computing capabilities, the potential applications of ANNs continue to expand and evolve in
various industries and domains.

7. REFERENCE
[1] ‘Robert J. Kauffiiian Leollard N.Stern School of Busivless New 'r'osk
Universit,y Re\\. %sk, Net.\' York 10003IJRAR1AUP019.pdf’.
[2] ‘European Journal of Business and Management www.iiste.org ISSN 2222-
1905 (Paper) ISSN 2222-2839 (Online) Vol.7, No.1, 2015234626159.pdf’.

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