Slow at First, Canada Bankers Now Focus on Teller Machines

By Lake, David | American Banker, October 12, 1984 | Go to article overview

Slow at First, Canada Bankers Now Focus on Teller Machines


Lake, David, American Banker


MONTREAL -- Canadians have been slow to grasp the benefits of automated teller machines, but now that the advantages are clear, ATMs are popping up in bank branches across the country. Names like Johnny Cash, Cashstop, Green Machine, and Instabank are greeting avid consumers.

There are only 2,600 ATMs hooked up in Canada, compared to 45,000 in the United States, but expansion and development in many aras have been rampant. By 1985, there are expected to be 7,000 automated teller machines servicing Canadian consumers.

The development of ATM networks in Canada has differed from the U.S. evolution. While American banks share services in some 100 regional and national ATM networks, the five major Canadian banks have jealously guarded their individual systems. But the antisharing philosophy is breaking down.

First, Bank of Nova Scotia and National Bank of Canada decided to merge teller technology. Then, bank of montreal announced it was linking its 430 teller machines with the widespread Cirrus Systems Inc. of the United States.

The pooling of the National and Scotia networks next is expected to save money and increase market coverage. Scotia has 139 ATMs across Canada but only seven in Quebec. National has just 58 ATMs, but most of them are in that province.

Meanwhile, bank of Montreal may have made Cirrus a major competitor in the Canadian market. Cirrus was formed in 1982 by 13 U.S. banks and is expected to have 7,500 terminals linked by year's end. Bank of Montreal clients will be able to use American machines by 1985, while U.S. users of Cirrus will be using machines in Canada by the summer tourist season.

With its recent purchase of Harris Bank in Chicago, the move toward a North American network is natural for Bank of montreal. Consolidation and Shakeout

"The question now is whether banks will consolidate, merge, or maintain their own ATM networks," says Thomas Jarmai, a bank analyst with Canada Bond Rating Service. "There will have to be some consolidation, and that will indirectly mean a shakeout. The amount of transactions needed to make ATMs profitable is currently not being performed. It is expensive to keep up with the Joneses -- especially when ATMs can soon become obsolete. Banks have used their systems to attract customers, and they are reluctant to attract clients for other institutions. In the end, however, shared systems will prevail."

Automated teller machines in Canada cost $40,000 apiece, not including installation or maintenace. That price is beyond the means of many smaller financial companies who had bought checking services from banks in the past and were hoping to latch onto an ATM network for another fee. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Slow at First, Canada Bankers Now Focus on Teller Machines
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.