How John Shepherd-Barron Brilliantly Invented the ATM and Why ATM PINs Are Only Four Digits

Today, our article is being written about the invention of ATM [automated teller machine] and its four digit security pin. ATM is an electronic machine which was designed to enable customers to carry out financial transactions with their financial institutions. Customers can withdraw cash from it or transfer it to another person, check balance and also deposit cash. Apart from this, they can also get a mini statement if required.

The concept of ATM came to John Shepherd-Barron, a Scottish inventor, in the mid-1960s. Shepherd-Barron at that time worked for a printing press called De La Rue. One day Shepherd-Barron was taking a bath when he thought of how he could withdraw his cash when banking hours were also over. He had an idea in his mind. He thought, is it possible that just like we can buy chocolates and chips using a vending machine, similarly there should be a machine or device through which we can withdraw cash, so that customers can get their cash without going to the bank?

HSBC Express Banking ATM in, Shatin, Hong Kong. Source-Wikipedia

Shepherd-Barron told this idea to Barclays Bank which was a leading bank in the United Kingdom at that time, the bank liked his idea and thought that this could be a historic vision, through which its customers can get their cash from outside without coming to the bank, which can give more time to its bank staff to do other work and it is also possible that in the coming time it may not need more staff, due to which it decided to develop this concept, the bank worked with Shepherd-Barron and built its first ATM which was installed in Barclays’ Enfield branch in North London on 27 June 1967.

The ATM that was established was quite different from today’s ATM. In today’s ATM, we transact and withdraw cash through plastic cards, whereas in the first ATM, cash could be withdrawn only through a special type of paper that was approved by the bank, that too within a certain limit. To track its user and identify the right customer, the machine used a special type of 4-digit number.

The credit for the invention of the first ATM is definitely given to John Shepherd-Barron, but there is another person who made a significant contribution to this technology. An American engineer Donald Wetzel, who worked in a chemical company, invented an ATM for a chemicals use.

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Wetzel worked further on this technology and after continuous hard work, he got success and enabled the ATM to read plastic cards. It was his dedication due to which in modern life we ​​can transact through plastic cards at ATMs. This promoted more security and reliability in transactions. On September 2, 1969, Chemical Bank installed Wetzel’s ATM in its branch in Rockville Centre, New York.

When Shepherd-Barron invented his first ATM, initially he thought of a 6 digit PIN to authenticate the customer and maintain reliability in transactions. He first tried it for his wife when he was making this machine but his wife was facing a lot of problem in remembering a 6 digit PIN, due to which John adopted the concept of 4 digit PIN.

Although different banks recommend 4 digit or 6 digit PIN, as of today some banks like Kotak Mahindra Bank recommend 6 digit security PIN while other banks recommend 4 digit PIN only. It is the personal choice of each bank whether it recommends 4 digit or 6 digit PIN but security and safety of the customer is of utmost importance.

• Ease of Memorization: Four-digit numbers strike a balance between security and ease of recall. For most people, remembering a four-digit number is relatively straightforward.
• Security: While a four-digit PIN might seem short, it provides a reasonable level of security. With 10,000 possible combinations (0000 to 9999), it creates enough complexity to deter casual guessing.
• Usability: The four-digit format is quick and convenient to enter, especially in public settings like ATMs. Longer PINs could lead to longer transaction times and increased frustration for users.

With time, the craze for PIN also increased and its influence and the willingness of the customer started to be implemented, although from the point of view of security, some systems found longer PIN appropriate. Along with PIN, verification by biometrics such as finger and facial recognition also came into practice to strengthen the security.