CHAPTER ONE
1.0    INTRODUCTION
1.1    BACKGROUND OF THE STUDY
Banking Industry across the world aid the promotion of economic growth and development, it is the recognition of the crucial rile that has engendered a global crusade to improve the sector.  One, major area, of exploration is the use of information technology (IT) to improve banking services with the convergence computing and telecommunication automated now characterize the operation in the banking sector of the world economy.
Automation is the use of machine instead of people to do a job or industrial process with respect to banking, it, involves the use of automatic machine and computer base device o perform banking activities in a way to increase speed, accuracy and capacity.  Automation allows bankers to get closer to their customers and deliver a wide range of service at a lower cost.  It is belief that there are four ways in which automation can be use banking industry, and they are:-
1.    To perform greater expended base to be handled
2.    To reduce substantial real cost of handling payment
3.    Cut the banks free from traditional constraints upon time and place.
4.    Introduce new product and services
Automation in banking industry can manifest in the following ways:-
1.)    Banker automated clearing service
2.)    Magnetic ink character reader
3.)    Payment system
4.)    Delivery channel
5.)    Source of Information
For the purpose of the study, our scope will be limited to the automated teller machine under the payment system. Where payment system involve business transaction without cash or cheque or any other paper mode money transaction.
The automated teller machine (ATM) is a cash dispenser that is designed to enable customer to enjoy banking service without coming into contact with any banks staff.  The ratio of machine is guided through instructions programme into the machine.  Users can gain access into ATM system through a personal identification pin number give to, the customers and must be discloses to a third party.
A mechanical cash dispenser, arguably an ATM, was developed, and build by Luther George Simjian and installed in 1939 in New York city by the city bank of New York, but remove after 6 months due to lack of over 25years, Nut ill, De ta Rue developed the first electronic ATM, which was installed first in Enfield, Town in north London on 27m June 1967 by Barclays bank.
This instance of innovation was credited to John shepherd Barron, although various other engineers were awarded patents to related technologies at the times.  Shepherd.  Barron was awarded on OBE in the 2005 New Year’s honour.  The first person to use the machine was Reg verney of’’ on the buses fame, a British television programme from the 1960.  The first ATMs accept only a single – use taken 1- voucher, which was retain by the machine.  These worked on various principles, including radiation and low-coercivity magnetism that was wiped by the card reader to make fraud more difficult.
The deal of a pin store on the card was developed by the British engineer James Good fellow in 1965.
1.2    STATEMENT OF THE PROBLEM
In the course of this paper answer will be provided to the following questions.
1.    What is the historical background ATM
2.    What are the reason for introducing ATM
3.    What is the effects ATM
4.    Does ATM solve any problem facing ATM in Nigeria Banking industry
1.3    OBJECTIVES OF THE STUDY
Base on the above question, the objectives of the paper will be:-
(1)    To discuss the history of ATM
(2)    To examine the reason for introducing ATM
(3)    To highlight the effects ATM
(4)    To critically examine the problems facing ATM in service delivery.