Final answer:
Automation, exemplified by the introduction of ATM machines, has reduced the need for human tellers in banks by performing routine tasks efficiently, thereby decreasing labor costs and demand for human employees.
Step-by-step explanation:
The introduction of ATM machines allowed financial institutions to handle more transactions at a lower cost and with greater efficiency, a development that led to a decreased demand for human tellers. This change can be best explained by the impact of automation on the workforce, which refers to the process where workers are replaced by technology. In the banking sector, automation in the form of ATM machines and other digital banking tools not only reduce the transaction costs associated with banking processes but also allow banks to be more efficient, as they can handle transactions outside of traditional banking hours and without the need for human intervention in many routine tasks.
Banks serve as financial intermediaries, simplifying and securing transactions for both individuals and businesses. The automation of banking services, including the use of ATMs, fits within a broader trend across all sectors where repetitive tasks and roles are increasingly being performed by machines. This technological progression ultimately impacts the labor market, particularly in jobs that are easily automated, by reducing the total number of positions required to conduct business as usual.