ATMs aka the automated teller machines are so common these days that we don’t even think of them as some special devices or machines anymore. But don’t forget, these machines just came into the picture back in 1967 only, and in a matter of just decades, these are super common, and you can find dozens and dozens of these ATMs in every city, no matter how big or small. You can even find them in small towns as well as in rural parts of the nation too. That’s just because it is like super convenient and easy to transact through these ATMs right now, and that’s the reason why there are so many of them. Still, we’d like you to just take a look at the advantages and disadvantages of ATMs that we have prepared for you to understand it in a better way. Alright, here we go then.
Advantages of ATMs
1. Convenience and Accessibility
Alright, this is the first and most important reason why ATMs first came into the picture and why there was a need for some machines like this. Before ATMs, people had to go to the physical branch to withdraw or have access to their money, but now, it’s like you just go to a nearby ATM and withdraw within the limits of your debit card, and that too, whenever you want. Like, that’s a truly 24/7 service right there.
2. Efficiency and Speed
When you go to your bank to withdraw your money, you have to fill in a slip, wait in line, hand the slip to the bank people, and then wait for them to verify your identity and then give you the money you asked for from your bank account balance. Right? And that’s where the best bit about ATMs comes in, like, they’re super fast and kinda super efficient as well. Sure, you might get to wait in line at a nearby ATM, but still, the withdrawal speed part is super awesome.
3. Financial Inclusion
See, with banking, it is a big issue that they can’t reach every part of the nation, like if you live in a rural part of the country, then it could very well be that there is no physical bank branch near you. But, let’s say you are in need to withdraw your money, check your bank balance, or something like that, in that case, going to a physical branch over and over again doesn’t make sense. So, that’s why banks put ATMs in these rural parts, and that just works like magic.
4. Crisis Resilience
It is true that in case there is some big storm going on out there or maybe something wild is happening, and because of that, the banks might close their physical branches for a while. But ATMs? Oh, how do you even close them? Like, first of all, why is there even a need to close them? That’s the best bit, like in such scenarios, you can still go to an ATM and have access to your money.
5. Technological Advancements
Right now the ATMs we have aren’t the good old ones where you could only check your bank balance or withdraw money. Nah! Today’s ATMs are kinda super techy, like you can do a whole bunch of things, for example depositing money to your account, paying some bills, and things like that, all of that without you even needing your card or identity card, like your fingerprint is enough.
6. Educational Impact
Sure, not everybody knows how to use an ATM, but still, the availability of these ATMs everywhere is making people learn how to use them and that’s a positive bit right there.
7. Business Benefits
Business? Well, this one is for the store owner or any business-minded person out there. Like, if you own a store, then you can put an ATM inside there and earn commissions on every transaction.
Disadvantages of ATMs
1. Security Vulnerabilities
At some point, it might have crossed your mind that ATMs are literally treasures sitting pretty out there, right? And sure enough, there have been many cases where people have tried to exploit these ATMs, and some even have taken ATMs with them. This is something that’ll always be an issue.
2. Financial Costs
It is not always the case, but yes, it is true that when you use ATMs to check your bank balance or withdraw money, the bank will charge you some fee on every transaction for this. Usually, there is a free limit, but after that, you’d have to pay the fee.
3. Technical Limitations
Well, these are just machines, and just like any machine out there, they still have some limitations, the technical ones, you know? Like, sometimes they run out of cash, sometimes their software freezes, and things like that happen, and this is super common actually.
4. Operational Challenges
If you’re someone who runs ATMs, it’s not a fun thing at all for you, right? Like you have to make sure that things are working fine with the machine, it is dispensing money, like it hasn’t run out of money, if it has, then you’d have to fill it up once again, etc. On top of that, getting ATMs to faraway places is super tricky as well as very difficult.
5. Future Relevance
These days, we’re using cash as the main source of spending money, but that thing is changing because now people are paying directly through their phones, debit or credit cards and things like that. So, these ATMs might disappear in the future if there is no need for physical cash anymore. But that will take time, so for now, these ATMs are the way to go for many people.
6. User Dependency on Cash
See, there was a time when so many people were using ATMs all the time, but since now everything has gone digital, even the way we use our cash, that’s precisely why the number of users withdrawing money from ATMs has gone down drastically. And that right there is not a good sign at all.
Conclusion
There you have it. No doubt, these ATMs are super useful, easy to use, and convenient, along with that so many other benefits, but still, we can’t just skip past the challenges with these machines as well. All in all, we just wanted to give you an all round perspective on things, and that’s why we tried our best today.
