Finance:IBM banking equipment

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Short description: Early automatic teller machine

IBM designed, manufactured and sold banking equipment included automatic teller machines (ATMs) from 1972 till 1998 when it exited the market by selling all remaining assets to Diebold.[1]

IBM 2984 Cash Issuing Terminal

IBM 2984 Cash Issuing Terminal

The IBM 2984 Cash Issuing Terminal was designed at the request of Lloyds Bank, which branded it "Cashpoint". Installation began in 1972, and by 1978 Lloyds had deployed 670 terminals, processing over 200,000 withdrawals per week totalling approximately five million pounds in cash.[2]

The terminal accepted bank credit cards and required customers to enter a personal identification number (PIN), which at the time was a relatively novel authentication method. The PIN and account data encoded on the card's magnetic stripe were transmitted to the bank's host computer for transaction validation. The term "Cashpoint" became so widely adopted that it entered common usage in England as a generic word for any ATM.[3]

The encryption system used in the 2984 was derived from a cipher algorithm created by IBM cryptographer Horst Feistel. Researchers in IBM's Systems Communications Division adapted this algorithm so that each transaction's dispensing commands varied unpredictably, preventing attackers from recording and replaying instructions. This encryption work became the basis for IBM's subsequent entry into the commercial cryptography market during the 1970s.[3]

IBM 3600 Finance Communication System

Prior to the 1970s, bank branch operations were largely manual. Tellers processed transactions by hand, maintained paper ledgers, and had limited ability to access centralised account records in real time. Although large mainframe-type computers such as the System/370 were increasingly used in central processing centres, the investment required — typically over a million dollars — meant that individual branches could not justify their own installation. Banks needed a way to connect branch staff and customers to the central computer without placing a full-sized system in every location.[4]

The IBM 3600 Finance Communication System, announced on 10 August 1973, was IBM's response to this challenge and one of the earliest examples of an integrated network of banking devices.[4][5] The system combined a programmable branch controller — the IBM 3601 — with a family of terminal devices including teller displays, document and passbook printers, a self-service consumer transaction facility, and an administrative line printer, all connected via a loop-based communications architecture to a central System/370 host processor through an IBM 3704 or 3705 Communications Controller using Synchronous Data Link Control (SDLC).[6] The system was developed at IBM's Systems Communications Division (SCD) in Kingston, New York with support from the IBM Advanced Systems Development Division, Los Gatos and the IBM San Jose Special Engineering operation.[7]

The 3600 represented a fundamental shift in branch banking. As branches were updated with this new technology, tellers at any branch (rather than just a customers home branch) could update, retrieve, and enter customer records on-line, with transactions processed against the central database in real time rather than batched for overnight processing. [5][8][9] The 3601 controller's programmability also allowed branches to continue operating — capturing transactions and performing limited processing locally — even when the communications link to the host was unavailable. This combination of on-line real-time processing with off-line resilience dramatically increased operational efficiency for financial institutions and helped establish the model of networked branch banking that would persist for decades.[4][10]

The 3600 was announced alongside other IBM vertical industry systems, including the IBM 3650 Retail Store System, the IBM 3660 Supermarket System, and the IBM 3790 communications system, the combination of which IBM described as a "revolution in terminal based systems".[11][6] First customer shipments of the 3600 system began in November 1974. It was succeeded in 1981 by the IBM 4700 Finance Communication System, which offered faster processing and additional work station configurations, though the 3600's communications protocols and device interfaces remained influential long after the hardware was superseded.[4]

The following devices were announced as part of the 3600 system:[6]

IBM 3601 Finance Communication Controller

The IBM 3601 Finance Communication Controller is the programmable control unit at the centre of the 3600 system. It contains up to 40 KB of programmable storage and an integrated data file on a removable diskette for storage of controller data, user programs, and customer data. The controller manages all attached terminal functions, controls data transmission between the terminals and the host processor, and can operate independently when the CPU is unavailable — capturing data from terminals, executing arithmetic operations, and storing transactions on disk for later transmission.[12]

Key features include:

  • One standard loop with up to five additional loops available as special features
  • Support for local loops at 1,200, 2,400, or 4,800 bps, and remote loops at 1,200 bps via integrated modem
  • Communication with the host processor over SDLC via an integrated 1,200 bps modem or external modems at up to 4,800 bps
  • Off-line operation with transaction capture and disk-based data storage
  • Configuration and Parameter Generation (CPGEN) facilities for defining work station arrangements, keyboard layouts, and device assignments

IBM 3604 Keyboard Display

IBM 3604

The IBM 3604 Keyboard Display is an interactive terminal providing input and output for teller work stations. It features a 240-character gas-panel display arranged in six rows of 40 characters, rendered in a 7 × 9 point matrix. A variety of keyboard options are available, including numeric, alphanumeric, and expanded function key layouts. The 3604 can optionally be equipped with a magnetic stripe reader or encoder-reader, enabling it to read credit cards to ABA standards and read or encode magnetic stripe labels on passbooks.[13]

IBM 3610 Document Printer

The IBM 3610 Document Printer is a compact table-top printer for hard-copy output of banking transactions. It prints at 10 characters per inch across 80 print positions, at speeds of 15 cps (with a 64-character set) or up to 30 cps (with a 96-character set). Three models are available: Model 1 prints on cut forms only; Model 2 adds a journal/audit roll; and Model 3 prints on continuous fanfold paper. The printer can be shared between two teller stations.[14]

IBM 3612 Passbook and Document Printer

The IBM 3612 Passbook and Document Printer is a table-top printer with two separate disk print mechanisms — one for passbook printing at 12 characters per inch and the other for cut forms, journal rolls, or continuous forms at 10 characters per inch. The passbook mechanism supports both horizontal-fold and vertical-fold passbooks with a print line of up to 100 characters. As with the 3610, three models are available covering cut forms, journal rolls, and continuous fanfold paper respectively, and the unit can be shared between two stations.[15]

IBM 3614 Consumer Transaction Facility

IBM 3614

The IBM 3614 Consumer Transaction Facility is an online banking terminal that provides customers with direct, self-service access to their accounts. Introduced in 1973 as IBM's second-generation banking machine and successor to the IBM 2984, the 3614 expanded beyond simple cash dispensing to support balance enquiries, deposits, payments, and other transactions configured by the financial institution.[3] An optional deposit module enables bill payments alongside standard deposits, and an optional receipt printer provides customers with a printed record of each transaction.[16]

The terminal connects to a bank's central mainframe computer via telephone lines, which allowed financial institutions to deploy 3614s well beyond traditional branches — including supermarkets, department stores, and other high-traffic retail locations. This off-premises deployment model enabled banks to extend their customer reach without investing in additional branch infrastructure, while retail hosts benefited from customers having ready access to cash. Virginia National Bank notably installed an IBM 3614 in the main concourse of The Pentagon.[3][17]

Four models of the 3614 are available:

IBM 3614 models
Model Description Denominations Announced Withdrawn
1 Indoor installation, for use during normal business hours 1 10 August 1973 9 March 1981
2 Exterior wall-mounted, accessible outside branch hours 1 10 August 1973 9 March 1981
11 Indoor installation (Dual Document Feed) 2 8 September 1975 9 March 1981
12 Exterior wall-mounted (Dual Document Feed) 2 8 September 1975 9 March 1981

Models 11 and 12 are collectively referred to as Dual Document Feed models.[16] Announcement and withdrawal dates per IBM Hursley Museum hardware records.[18]

All 3614 models support the following optional features: transaction statement printer, depository unit, transaction chaining, transaction journaling, and check cashing. The last three — transaction chaining, journaling, and check cashing — are grouped under the designation Expanded Function Features.[16]

A 40-character display guides customers through each step, prompts correction of any input errors, and returns account information visible only to the account holder. The unit also includes a card retention mechanism for flagging stolen cards, and can trigger an external alarm if tampering is detected.[19] The through-the-wall models (2 and 12) use a protective window equiped with a safety clutch, which covers the access area (except the card slot). This opens when a card is inserted and closes 25 seconds after the last transaction is made.[16]

Unusual by today's standards, the customer's ATM card was inserted with the magnetic stripe facing up as can be seen in the informational decal in the image of the IBM 2984. Modern ATMs typically expect customers to insert their card with the stripe facing down, which has the added benefit of displaying the card issuer's logo during insertion. [20]

The 3614 was withdrawn from marketing on 9 March 1981.[18]

IBM 3618 Administrative Line Printer

The IBM 3618 Administrative Line Printer is a medium-speed line printer for volume output. It uses a continuous-belt print technology and prints on continuous fanfold paper with up to 80 print positions on an 8-inch line, expandable to 132 positions on a 13.2-inch line with the Expanded Print Line special feature. Print speeds range from 80 lpm (with a 96-character set) to 155 lpm (with a 48-character set). An optional dual independent forms feed enables two different paper sizes to be handled simultaneously.[21]

IBM 3624 Consumer Transaction Facility

Ibm3624

The IBM 3624 was released in 1978 as a second-generation automatic teller machine (ATM) as a successor to the IBM 3614.[10] Designed at the IBM Los Gatos lab, the IBM 3624 was manufactured at IBM facilities in Charlotte, North Carolina and Havant, England.[22] The original product announcement of 14 March 1978 listed Raleigh as the plant of manufacture, with first customer shipments scheduled for February 1979.[23]

The 3624 is an unattended self-service terminal that issues variable amounts of currency, accepts deposits, and performs other financial transactions. It was designed for IBM 3614 family compatibility, allowing coexistence with existing 3614 installations on the same loop and simplifying the transition between the two products.[23] It attaches to a 3601 or 3602 Finance Communication Controller via a loop interface, or directly to a virtual storage S/370 or 4300 processor through a 3704 or 3705 Communications Controller via SDLC.[22]

At announcement the purchase prices were US$12,150 for Model 1, US$13,400 for Model 2, US$14,150 for Model 11, and US$15,400 for Model 12.[23] There were four models:[24]

IBM 3624 models[18]
Model Description Denominations Announced
1 Indoor installation, such as a building lobby 1 14 March 1978
2 Through-the-wall mounting for outdoor access 1 14 March 1978
11 Indoor installation, such as a building lobby 2 14 March 1978
12 Through-the-wall mounting for outdoor access 2 14 March 1978

The dual-feed models (11 and 12) can issue two different denominations in a single transaction, or load the same denomination in both dispensers to double the bill capacity. Documents other than currency, such as traveller's cheques, can also be dispensed if they pass a qualification test. The machine issues up to 20 bills at a time in a single stack with no pre-packaging.[23]

Key features include:[23][22]

  • Portable, interchangeable currency cartridges holding approximately 2,300 new bills or 1,700 used bills
  • Cash issuing, account balance enquiry, account-to-account transfer, cheque cashing, deposits, and bill payments
  • Programmable transaction keys with numeric or alphanumeric keypads
  • Keyboard slanted 15 degrees from vertical for privacy; guidance display panel swivel-mounted for visibility and sunshielding
  • Walk-up and drive-up configurations on Models 2 and 12
  • Multiple language display based on identifier code on the customer's card
  • Transaction chaining — multiple transactions with a single card insertion
  • Customisable backlighted logo panel extending across the full width of the front

An optional transaction statement printer produces receipts on 96-column card stock measuring 2-5/8 × 3-1/4 inches (67 × 83 mm), and can also retain copies within a journal stacker for audit purposes. When making deposits, customers place a transaction record inside a deposit envelope; the optional depository printer stamps a sequence number on each envelope as it passes through the depository throat.[22]

Models 2 and 12, when installed with the heavy-duty enclosure and through-the-wall accessories, meet the specifications of UL 291 and comply with the intent of U.S. Federal Regulation P for unattended operation when the branch is closed. The lobby models (1 and 11) meet the specifications of UL 114 and comply with the intent of Regulation P for attended use during business hours, on the condition that the machine is empty of currency at all other times.[23]

An unfortunate design characteristic of the 3624 was that the vault containing the cash dispenser was located in the upper area of the unit, making it top-heavy and extremely awkward to transport up and down stairs. Another common complaint was the relatively small capacity of the currency cartridges compared to competitors' equipment at the time.[citation needed] As was typical for ATM hardware of this era, the IBM 3624 has two distinct high-level communications protocols. The first, a direct mainframe attachment through SDLC links, is an IBM SNA LU0 protocol. The second is an attachment to the IBM 3600 and 4700 series of banking equipment via a start-stop TDM loop with time slots assigned to specific 36xx series equipment at 1,200 bit/s. The loop interface uses an internal 1,200 bps integrated modem for remote attachment.[22]

The IBM 3612, 3624 and 3600 communications protocols were incompatible with other ATM vendors' high-level communications protocols.[25]

One of the most lasting features introduced with the 3624 was the IBM 3624 PIN block format used in transmission of an encrypted personal identification number (PIN).[26][27] The 3624 uses the U.S. Federal Information Processing Data Encryption Standard (DES) algorithm for encryption of sensitive data during communication line transmission. The encryption modules required for the 3600 Host Support program were designated BQKDES and BQKDPRS; source listings were not orderable and were not supplied with these modules.[23][22]

IBM 473x Personal Banking Machines

IBM 4700 Banking Equipment

In 1983, IBM introduced the IBM 4700 Finance Communication System, a complete refresh of its branch banking platform that replaced the earlier IBM 3600 series.[28] Alongside the 4700 controllers came a new family of ATMs designated the IBM 473x series, marketed as "Personal Banking Machines" (PBMs).[29] Known models included:

  • IBM 4730 — Personal Banking Machine (1983)[18]
  • IBM 4731 — Personal Banking Machine (1983)
  • IBM 4732 — Personal Banking Machine (1987)
  • IBM 4736 — Personal Banking Machine (1985)[30]
  • IBM 4737 — Self-service transaction station
  • IBM 4738 — Personal Banking Machine variant

The 473x series was a commercial failure as they were incompatible with the widely deployed IBM 3624, which remained in use at many bank branches.[28] The 4700 controllers could support some older 3600 peripherals, but 4700 peripherals could not be used with the existing 3600 controllers installed at most banks. This meant that prospective 473x buyers would have needed to replace substantial portions of their back-office infrastructure to adopt the new machines.[28]

Competitors exploited this incompatibility. NCR Corporation built market share by equipping its contemporary ATMs with 3624 software emulation, offering banks a drop-in modernisation path for their existing 3600 systems without requiring a wholesale infrastructure change.[28] Other ATM manufacturers pursued multiprotocol designs that could interoperate with multiple host systems.[28]

The various 473x models were introduced between 1983 and 1988, representing nearly a decade of IBM's efforts in the ATM market with minimal commercial success.[28]

IBM 4730

The IBM 4730 Personal Banking Machine is a self-service financial terminal designed for deployment in bank lobbies, vestibules, supermarkets, and other retail or workplace locations. It attaches to the IBM 4701 Finance Communication Controller and supports SNA/SDLC LU0, BSC-3, and BSC-3 with 3276 emulation communications protocols.[31] Connected to an System/370 host computer, the 4730 can accept cheque deposits without deposit slips, deliver cash against pay cheques, adjust account balances, and dispense exact change including coins. The coin-dispensing capability was later discontinued as the feature proved costly and saw little customer use.[3]

Key features include:

  • 480-character display on a 9-inch diagonal (23 cm) screen with selection keys
  • Numeric keypad with function keys
  • Magnetic stripe card reader
  • Integrated statement printer
  • Currency dispensing in up to five denominations plus four denominations of coin
  • Cheque deposits without envelopes via built-in magnetic ink character recognition (MICR) reader
  • Exact-amount cheque cashing
  • Automatic multiple language support based on the customer's card

The 4730 is offered in twelve models across three tiers:[31]

  • Base models (F01, F02, R01, R02) — Track 2 card reader, statement printer capacity of 1,000 forms. Announced 6 December 1983[18]
  • Enhanced models (F11, F12, R11, R12) — Track 1/2/3 card reader with Track 3 read/write, statement printer capacity increased to 1,900 forms. Announced 27 November 1985[18]
  • Heavy-duty models (F51, F52, R51, R52) — certified to UL 291 for 24-hour unattended service, reinforced enclosures with key-and-combination locks, vandal-resistant gates, and enlarged cheque depository (approximately 600 items). Announced 27 November 1985[18]

All models are available in single-console or dual-console configurations, with dual units sharing a common currency dispenser and logic module. The modular design supports free-standing or in-counter installation, with removable exterior panels that can be repainted or replaced to match branch décor.[31]

IBM 4731

The IBM 4731 Personal Banking Machine is a cash-dispensing terminal designed for through-the-wall, vestibule, and off-premises installations such as convenience stores, supermarkets, and railway stations. IBM emphasised the machine's compact physical design, with particular attention to ergonomics, privacy, and visual appearance for public-facing environments.[32]

Key features included:

  • Cash withdrawals, account balance enquiries, and funds transfers
  • Support for additional bank-defined transactions
  • One currency feed module as standard, expandable to a maximum of four
  • SDLC and BSC-3 communications at 1,200 to 9,600 bps
  • Local attachment to an IBM 4701 or IBM 4702 via SDLC, or remote attachment via modems

The 4731 is offered in two models:

  • Model BH1 — included an IBM-supplied hardened enclosure rated to UL 291 safe standards, compliant with U.S. Federal Regulation P for unattended operation
  • Model BO1 — omitted the enclosure, providing attachment points for installation into a customer-supplied safe

IBM 4732

The IBM 4732 Personal Banking Machine is a through-the-wall and lobby terminal designed to handle both cash and non-cash banking transactions. Announced on 3 November 1987 with a purchase price of US$19,900 per unit, it was positioned as a direct physical and logical replacement for the IBM 3624 and certain other manufacturers' ATMs, fitting within existing wall openings and attaching to most established ATM networks. General availability was planned for the third quarter of 1988.[33]

The customer-facing interface features a 9-inch diagonal (23 cm) positive-image CRT display with 480 characters arranged in 12 lines of 40, fitted with a limited-angle privacy filter restricting the viewing angle to 24 degrees either side of centre. Eight display selection keys flank the screen, and the standard consumer keyboard provides 16 keys in a 4 × 4 layout; an optional 32-key extended keyboard is available for institutions already using the same layout on the 3624, 4730, or 4736.[33]

Key features include:

  • Currency and coin dispensing in up to four denominations each
  • Statement printing on pre-printed fan-fold forms (up to 5,000 sheets capacity)
  • Cheque depository with magnetic ink character recognition (MICR) reader and approximately 600-cheque capacity
  • Envelope depository
  • DES encryption and decryption
  • Multiple language support (up to four languages per machine), selectable by card identifier or customer choice
  • Diskette-based journaling on a 3.5-inch 1.44 MB system diskette
  • Optional video camera interface
  • Dynamic reconfiguration upon component failure

The 4732 is offered in two models:

  • Model 001 — standard-capacity document cartridges holding approximately 1,900 documents each
  • Model 002 — expanded-capacity cartridges holding approximately 2,800 documents each; physically 120 millimetres (4.7 in) taller than the Model 001

Both models include a hardened enclosure rated to UL 291 for unattended operation, with a five-sided penetration alarm grid and contact pins for connection to an external security alarm system. Two document feed modules and one document reject bin are provided as standard, expandable to four feed modules. The standard-capacity cartridges and reject bins are interchangeable with those of the IBM 4736. Either model can be installed in a through-the-wall or free-standing configuration.[33]

The 4732 attaches to the IBM 4701 or IBM 4702 via SNA/SDLC, BSC-3, or the 4700 B-Loop protocol. An optional IBM 3624 Emulator feature supports both Version 7 and Version 8 of the 3624 protocol, enabling existing host applications to run with minimal modification — though attachment to an IBM 3600 system is not supported. A separate Alternate Connect feature allows the 4732 to attach to most SNA and bisync ATM networks at speeds up to 9,600 bps, including those using the Diebold 911 protocol and equivalents from Burroughs, Fujitsu, NCR, and Omron, enabling the machine to be substituted for a competitor's terminal without significant changes to the host application.[33]

IBM 4736

The IBM 4736 Personal Banking Machine is a compact self-service cash dispenser designed for bank lobby and vestibule use, as well as indoor off-premises locations such as airports, railway stations, department stores, and supermarkets. It is not designed for exterior installations where it would be exposed to weather.[34] It can be installed free-standing, built into an interior wall, or set into a teller counter.

The 4736 was announced on 27 November 1985 with a purchase price of US$16,800 for the Model RH2 and US$14,300 for the Model RS2; general availability was planned for September 1986.[34]

Key features include:

  • Cash dispensing in up to two currency denominations, with electronically locked cartridges each holding approximately 2,050 new notes
  • Account balance enquiries, funds transfers, and customisable bank-defined transactions
  • 480-character CRT display with adjacent selection keys, fitted with a limited-angle privacy filter restricting the viewing angle to 24 degrees either side of centre
  • Numeric keypad with function keys
  • Variable-length receipt printer using roll paper, printing up to 48 characters per line at a minimum of 100 characters per second, with a capacity of approximately 2,500 receipts
  • Magnetic stripe card reader — Track 1, 2, and 3 (with Track 3 read/write encoding)
  • Japanese Universal Credit Card (JUCC) reader
  • Local PIN validation within the terminal
  • Support for major worldwide currencies and languages
  • Dynamic reconfiguration upon component failure

The 4736 is offered in three models, each with two document feed modules as standard:[34]

  • Model RH2 — IBM-supplied hardened safe enclosure rated to UL 291 for unattended operation, with dual-custody access and optional alarm grids
  • Model RS2 — IBM-supplied soft enclosure rated to UL 291 for attended operation
  • Model R02 (not available in Canada) — shipped as sub-assemblies for installation into a customer-supplied OEM safe

The RH2 and RS2 models were available at announcement; the R02 appeared subsequently. All models are rear-serviced, with an optional turntable accessory allowing the machine to be rotated 180 degrees for front access. The terminal attaches to the IBM 4701 or IBM 4702 via SNA/SDLC, BSC-3, or the 4700 B-Loop protocol at speeds from 1,200 to 9,600 bps. IBM also published a statement of direction indicating its intention to provide a 3624 protocol emulator for the 4736, acknowledging the backward-compatibility concerns that hampered adoption of the 473x series.[34]

IBM 4737

The IBM 4737 Self-Service Transaction Station is a general-purpose consumer self-service terminal, distinct from the cash-dispensing ATMs in the rest of the 473x family. Rather than handling currency, it is designed to support a broad range of interactive applications beyond traditional banking — examples cited at announcement included car rental bookings, estate agent property listings, hotel reservations, account balance enquiries, standing order arrangements, and investment transactions.[35]

Key features include:

  • Touch-sensitive colour display screen
  • Keyboard
  • PIN pad
  • Processing power of an IBM Personal System/2 Model 30

An application development toolkit was announced alongside the 4737, intended to help software developers produce new packages to run on the terminal. This toolkit approach reflected a shift from the fixed-function design of the earlier 473x ATMs toward a more flexible, software-defined platform aimed at the emerging self-service kiosk market.[35]

InterBold and the IBM 478x series

IBM 4789

After the failure of the 473x series, IBM effectively exited the proprietary ATM design business. In July 1990, IBM and Diebold, Incorporated announced a joint venture called InterBold, headquartered in North Canton, Ohio.[36] Diebold held a 70 percent ownership stake and supplied the ATM hardware, while IBM contributed software development, systems integration capabilities, and its international marketing and distribution network.[36]

Under the terms of the joint venture, Diebold marketed the combined ATM lines in the United States, while IBM marketed them internationally, particularly in Europe, Asia, and Latin America, where IBM had historically been the stronger brand.[37] The ATMs sold by IBM under the InterBold arrangement were designated the IBM 478x series and were rebadged versions of the Diebold 10xx (Modular Delivery System) family.[38] Not all Diebold 10xx models were offered under the IBM brand.[38]

Known IBM 478x model-to-Diebold mappings included:[39]

IBM model Description Diebold equivalent Year
IBM 4781 Tabletop ATM Diebold 1060 1991
IBM 4782 In-lobby ATM Diebold 1062 1991
IBM 4783 Cash-only ATM Diebold 1064 1991
IBM 4785 Exterior ATM Diebold 1072 1991
IBM 4786 Exterior cash-only ATM Diebold 1071 1991
IBM 4787 Exterior drive-up ATM Diebold 1073 1991
IBM 4788 Exterior self-standing cash-only ATM Diebold 1074 1991
IBM 4789 Cash-only ATM Diebold 1063 1991

Within a year of the venture's formation, InterBold introduced the "i Series" ATM refresh in 1991, which was the first ATM model to use "image-lift" technology, allowing customers to see an image of deposited cheques on the ATM screen.[36][40] The i Series machines were guaranteed to perform 99 percent of the time and included features such as stamp dispensing, account statement printing, and improved accessibility for disabled users.[40] The 10xx/478x platform was further updated to the "ix Series" variant in 1994.[38]

InterBold became commercially successful, and by September 1995 Diebold was manufacturing over half of all ATMs used in the United States.[37] However, IBM grew dissatisfied with the returns from the venture, partly because developments in the broader computing market had undermined its strategy of linking ATMs to expensive mainframe systems.[28] For its part, Diebold was dissatisfied with IBM's sales efforts, which often fell short of quota, as IBM salespeople treated the ATMs as just one product among many in their portfolio.[41]

In July 1997, IBM exercised an option to sell its 30 percent minority ownership in InterBold to Diebold.[42] After the two companies were unable to agree on a price, the matter was referred to a third party.[43] The InterBold partnership was formally dissolved on 19 January 1998, when Diebold completed the purchase of IBM's share for $16.1 million.[44][37]

The dissolution of InterBold marked the end of IBM's direct involvement in the ATM market. The Diebold 10xx platform, which had been sold under the IBM 478x designation, continued in production and was eventually replaced by the Diebold Opteva series of ATMs in 2003.[38]

Legacy

Although IBM's post-3624 ATM hardware was commercially unsuccessful in its own right, the company's influence persisted in the broader ATM industry. The IBM 3624 PIN block format remained an industry standard for PIN encryption long after the hardware was discontinued. Many later ATMs, including those produced through the InterBold partnership, ran OS/2, IBM's operating system.[28] The IBM 3624's communications protocols and design concepts were sufficiently influential that competitors, most notably NCR, built successful ATM product lines in part by duplicating or emulating aspects of the 3624 architecture.[28]

References

  1. ↑ "Short Take: Diebold completes purchase of IBM's InterBold share". https://www.cnet.com/tech/tech-industry/short-take-diebold-completes-purchase-of-ibms-interbold-share/. 
  2. ↑ (in English) The Times. The Times. 14 March 1978. pp. 28. http://archive.org/details/NewsUK1978UKEnglish. 
  3. ↑ 3.0 3.1 3.2 3.3 3.4 "The ATM". https://www.ibm.com/history/atm. 
  4. ↑ 4.0 4.1 4.2 4.3 "Secure banking". https://www.ibm.com/history/secure-banking. 
  5. ↑ 5.0 5.1 "Ill Bank Uses 3600 for Transactions". Computerworld: 14. July 9, 1975. https://dn790002.ca.archive.org/0/items/computerworld928unse/computerworld928unse.pdf. 
  6. ↑ 6.0 6.1 6.2 IBM 3600 Finance Communication System: Product Announcement. IBM Data Processing Division. August 10, 1973. pp. 1–12. 273-52. 
  7. ↑ "Letters". Think (IBM) 44 (2): 48. March–April 1978. https://archive.org/details/think-magazine-1978-04/page/48. Retrieved 2026-03-22. 
  8. ↑ "Canada Trustco Annual Report 1978". 1978. https://ia800205.us.archive.org/1/items/Cana4527_1978/Cana4527_1978.pdf. 
  9. ↑ "Bank Goes On-Line, Anticipates EFT in Texas". Computerworld: 46. 8 January 1979. https://archive.org/details/sim_computerworld_1979-01-08_13_2/page/46/mode/2up?q=%22IBM+3600%22. 
  10. ↑ 10.0 10.1 Bernardo Bátiz-Lazo (27 June 2018). Cash and Dash: How ATMs and Computers Changed Banking. OUP Oxford. p. 106. ISBN 978-0-19-108558-1. https://books.google.com/books?id=tWhiDwAAQBAJ&pg=PT106. 
  11. ↑ "New technologies all of them". Think Magazine 40 (1): 30-31. 1974. https://dn721902.ca.archive.org/0/items/think-magazine-1974-02/think-magazine-1974-02.pdf. 
  12. ↑ IBM Sales Manual: Machines Section. IBM. 1979. pp. M 3601-1. 
  13. ↑ IBM Sales Manual: Machines Section. IBM. 1979. pp. M 3604-1. 
  14. ↑ IBM Sales Manual: Machines Section. IBM. 1979. pp. M 3610-1. 
  15. ↑ IBM Sales Manual: Machines Section. IBM. 1979. pp. M 3612-1. 
  16. ↑ 16.0 16.1 16.2 16.3 IBM 3614 Consumer Transaction Facility Operator's Guide (1st ed.). IBM. December 1976. pp. GI-1. https://www.bitsavers.org/pdf/ibm/3614/GA66-0004-0_IBM_3614_Consumer_Transaction_Facility_Operators_Guide_197706.pdf. 
  17. ↑ "Banking goes retail". Think Magazine March/April 1976: 6. 1976. https://ia801401.us.archive.org/13/items/think-magazine-1976-04/think-magazine-1976-04.pdf. 
  18. ↑ 18.0 18.1 18.2 18.3 18.4 18.5 18.6 "IBM Hardware Announcements to 1987". https://ibmhursleymuseum.info/docs/hardware_list_to_1987.pdf. 
  19. ↑ IBM System/370 System Summary. IBM. 1976. pp. 8-33. https://www.bitsavers.org/pdf/ibm/370/systemSummary/GA22-7001-6_370_System_Summary_Dec76.pdf. 
  20. ↑ IBM 3614 Consumer Transaction Facility Operator's Guide. IBM. 17 June 1977 (published 1977). pp. GI-7. https://www.bitsavers.org/pdf/ibm/3614/GA66-0004-0_IBM_3614_Consumer_Transaction_Facility_Operators_Guide_197706.pdf. 
  21. ↑ "IBM Sales Manual: Machines Section: 3618 Administrative Line Printer". IBM. July 1979. pp. M 3618.1. https://usermanual.wiki/Document/IBMSalesManualMachinesSectionJul79.3112322908/view. 
  22. ↑ 22.0 22.1 22.2 22.3 22.4 22.5 IBM Sales Manual: Machines Section. IBM. July 1979. pp. M 3624.1 to M 3624.6. 
  23. ↑ 23.0 23.1 23.2 23.3 23.4 23.5 23.6 IBM 3624 Consumer Transaction Facility: Product Announcement. IBM General Systems Division. March 14, 1978. pp. 1–12. P678-19. 
  24. ↑ IBM 3624 Product Announcement. IBM. https://www.ed-thelen.org/comp-hist/IBM-ProdAnn/3624.pdf. 
  25. ↑ Bátiz-Lazo, Bernardo (2013). "How the ATM revolutionized retail banking: Part II". https://www.atmmarketplace.com/articles/how-the-atm-revolutionized-retail-banking-part-ii/. 
  26. ↑ Bond, Mike; Zieliński, Piotr (February 2003). Decimalisation table attacks for PIN cracking (PDF) (Technical report). University of Cambridge Computer Laboratory. ISSN 1476-2986. UCAM-CL-TR-560. Retrieved 2026-03-17.
  27. ↑ "IBM PIN Algorithms — 3624 PIN Generation Algorithm". IBM Corporation. 2014. https://www.ibm.com/docs/en/zos/2.1.0?topic=algorithms-pin. 
  28. ↑ 28.0 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 Bátiz-Lazo, Bernardo (2013). "How the ATM revolutionized retail banking: Part II". https://www.atmmarketplace.com/articles/how-the-atm-revolutionized-retail-banking-part-ii/. 
  29. ↑ "List of IBM products". https://en.wikipedia.org/wiki/List_of_IBM_products. 
  30. ↑ (in English) Computerworld 1985-12-23: Vol 19 Iss 51. Internet Archive. Computerworld, Inc.. 1985-12-23. pp. 40. http://archive.org/details/sim_computerworld_1985-12-23_19_51. 
  31. ↑ 31.0 31.1 31.2 IBM Canada Service For Consultants 1987. IBM. 1987. pp. M4730-1. http://archive.org/details/IBM_Canada_SFC_1987. 
  32. ↑ IBM Canada Service For Consultants 1987. IBM. 1987. pp. M4731-1. http://archive.org/details/IBM_Canada_SFC_1987. 
  33. ↑ 33.0 33.1 33.2 33.3 IBM 4732 Personal Banking Machine Models 001 and 002: Product Announcement. IBM Information Systems Group. November 3, 1987. pp. 1–11. 187-214. 
  34. ↑ 34.0 34.1 34.2 34.3 IBM 4736 Personal Banking Machine: Product Announcement. IBM Information Systems Group. November 27, 1985. pp. 1–6. 185-156. 
  35. ↑ 35.0 35.1 "Service till means business". IBM UK News (IBM United Kingdom Limited): pp. 12. 8 March 1988. MF-01272. 
  36. ↑ 36.0 36.1 36.2 "History of Diebold, Incorporated". St. James Press. https://www.fundinguniverse.com/company-histories/diebold-incorporated-history/. 
  37. ↑ 37.0 37.1 37.2 "Diebold Nixdorf". https://en.wikipedia.org/wiki/Diebold_Nixdorf. 
  38. ↑ 38.0 38.1 38.2 38.3 "Diebold 10xx". https://en.wikipedia.org/wiki/Diebold_10xx. 
  39. ↑ "The IBM 4704". https://kishy.ca/?p=648. 
  40. ↑ 40.0 40.1 "IBM-Diebold unit to unveil a new generation of ATMs". American Banker. 1991. https://www.americanbanker.com/news/ibm-diebold-unit-to-unveil-a-new-generation-of-atms. 
  41. ↑ "Case Study: Diebold — Entry Strategy and Strategic Alliances". https://www.chegg.com/homework-help/questions-and-answers/case-study-2-diebold-entry-strategy-strategic-alliances-much-144-year-history-diebold-inc--q17937572. 
  42. ↑ "Diebold Enters Discussions to Purchase IBM's Share of InterBold (Exhibit 99.2)". 2 July 1997. https://www.sec.gov/Archives/edgar/data/0000028823/000095015297005017/0000950152-97-005017.txt. 
  43. ↑ "Diebold buys back stake in InterBold self service from IBM". 1997. https://techmonitor.ai/technology/diebold_buys_back_stake_in_interbold_self_service_from_ibm_1. 
  44. ↑ "Short Take: Diebold completes purchase of IBM's InterBold share". 19 January 1998. http://www.cnet.com/news/short-take-diebold-completes-purchase-of-ibms-interbold-share/. 



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