There were two key innovations that made this possible. The first was IBM’s invention of the magnetic stripe card in the 1960s: this was a thin strip of magnetized tape, bonded to a plastic card, that could encode and store data like account numbers, and which could be read by a machine when swiped through a card reader. And the second was Digital Equipment Corporation’s pioneering minicomputer, which dramatically reduced the price and size of general-purpose computing.
But the other thing about the bank teller story that Vance cites is that it’s wrong. We do not, contrary to what Vance claims, have “more bank tellers today than we did when the ATM was created”: we in fact have far fewer. The story he tells Douthat might have been true in 2000 or 2005, but it hasn’t been true for years. Bank teller employment has fallen off a cliff. Here is a graph of bank teller employment since 2000:
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