Jersey: The 50-year Banking Revolution

50 years ago, in June 1967 while The Beatles' Sgt. Pepper album was revolutionising the music industry, a quieter revolution began in the high street when the world's first Automated Teller Machine (ATM) dispensing cash was unveiled at the Enfield branch of Barclays Bank.

TV personality Reg Varney became the first person to withdraw cash. The convoluted process which resulted in the machine swallowing a cheque containing radioactive carbon-14 and then dispensing a tenner, had started with a trip into the bank beforehand. Reg entered a six-digit PIN which the cash machine matched against data in the carbon-14.
There is much debate over who the actual inventor of the cash machine was, but the idea of a personal identification number (PIN) was thought up by the designer, John Shepherd-Barron, and refined by his wife Caroline who changed his six-digit number to four as it was easier to remember.
However, I would argue that the anniversary to really celebrate didn't happen until five years later, when a technological transformation profoundly changed our interaction with cash and credit.
The first ATM as we know it today was finally introduced in 1972 at the request of Lloyds Bank, after IBM engineer Forrest Parry, aided by his wife and her iron, attached a strip of magnetic tape to a card allowing a small, portable method of data storage, customers could access their money at any time without talking to a cashier. It is that move from paper to plastic which transformed the way we interact with banks.
For many people, the ATM was their first experience with a computer and before mobile phones, they were probably the single most influential piece of technology for the public. I wonder how they influenced the designers of the smart phones and computers of the 1990s and 2000s? I was told a story about an incident in the late seventies when a woman who had never used an ATM – or any other computer – inserted her card for the first time. She read on the screen: "Enter the amount to withdraw – the sum must be in multiples of five." Wanting to take out £40, but not entirely sure how to proceed, she cautiously entered £55,555,555 and wondered why her card was swallowed.
The modern ATM experience is clear and well-tested, and every point of the interaction is carefully considered. For example, in the UK, the ATM returns your card before dispensing the money. Tests showed that, as soon as people got their cash, they would consider the transaction complete and walk off forgetting their card.
By the time TV personality Cheryl Baker opened the first drive-thru cash machine in 1998 (at Hatton Cross near Heathrow) the card had become ubiquitous and its uses manifold. Today, an ATM is installed somewhere in the world every three minutes. They are helicoptered in to refugee camps as part of disaster responses, and they are found on the tops of mountains and in Antarctica. Yet it's only because its users carry cards that this is possible.
Jersey was already welcoming a number of international banking groups and finance houses from as far afield as Canada and South Africa during the sixties. By 1967, Jersey was already an established finance centre, although nowhere near the scale of today. Bank deposits, other than those from the UK clearing banks, stood at £71.3 million. I wonder if anyone in the sixties would have been far sighted enough to forecast that 50 years later, the level of deposits attracted to Jersey would be in the billions, rather than the millions.
The precise date and location of Jersey's first ATM has been lost, but I like to think that the local equivalent of Reg or Cheryl was on hand to withdraw the first cash.
The ATM is an illustration of the steady evolution in banking services. Cards are being replaced by finger prints and mobile phones as means of customer identification, and whilst our cards morph with our phones as some global banks are now offering Apple Pay and Android Pay solutions for ATMs. These machines fundamentally remain the method of obtaining that oldest of means of transaction – cash.
Innovation aside, global banking has been shrinking since the 2008 crisis as financial organisations re-structure their operations, seek to reduce costs and cope with increasing regulation, while finding ways to remain profitable. The future of banking in Jersey will depend on our ability to react and adapt to change. The ATM's influence has been profound not because of the machine which was installed 50 years ago, but because of its marriage with the card which appeared 45 years ago. Similarly, future changes may be the result of new technologies amalgamating and changing one another. 
A new type of ATM is also emerging for bitcoin, the digital currency which can be bought and sold electronically. Jersey has one such machine in place already. 50 years on, does it perhaps serve as a symbol of an ongoing banking revolution between digital and financial services and the opportunities which we are only just beginning to explore?

Linkedin -
Twitter - @jerseyfinance
Youtube -

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions