THE GEORGIA TECH PLAN FOR A CHECKLESS SOCIETY—
From Checks Xou may never see the inside of another bank, if the current Georgia Tech —Federal Reserve study of checkless banking is implemented. The Atlanta study is, at least conceptually, ahead of the entire nation. Developed at Tech with the support and cooperation of the Federal Reserve Bank of Atlanta and four major local banks, the Atlanta plan is more extensive and all-encompassing than any of the several plans being considered elsewhere. Dr. Al Lipis, current director of the project, is an adjunct professor of industrial management on loan from the First National City Bank of New York. He feels that if properly operated the system would be more economical and convenient, with savings passed on to the customer, and would be less subject to error and fraud than the present system of paper checks. Besides that, the day is coming when the present checking system begins to choke on the sheer volume of paper handled. The average check today is handled ten times between the time it is written and the time it finally operates as a draw upon its account and is returned with the account statement. According to a survey conducted as part of the study, the total number of demand deposit (checking) accounts will double in about eight years. Each personal account produces from 13 to 21 checks per month. Though the present system operates efficiently and well, it is cumbersome and increasingly expensive; the anticipated growth could create problems.
The project was begun in June 1969 under the late Dr. Paul Han of Tech's College of Industrial Management. Dr. Han persuaded the Federal Reserve Board that the study should be done, and that Georgia Tech could do it. He initiated Phase I as a massive stage of data collection and analysis relating to the checking system of Georgia and Florida, especially Atlanta and Miami. Phase I. An Analysis of Payments Transactions, and Phase II. Payments Flow Data, were well on their way toward completion and a final report when Dr. Han died
suddenly in February of 1971. Dr. John R. Kaatz of industrial management continued the project until July of 197 1 when Dr. Lipis, whose Ph.D. is in operations research, became director. Prior to this time Dr. I Ian had conducted the study primarily with only help from graduate assistants, but Dr. Lipis felt that Phase III, the design of a proposed system, called for practical expertise; in banking as well as ready access to current banking data. He therefore made arrangements with the Citizens and Southern National Bank, the First National Bunk of Atlanta,
Participants in the study, left to right: Harold Barrett, First National; Wiitiam Adcock, Fulton National: Larry Mauidin. Trust Company; and William Sheehy, Federal Reserve Bank of Sew York. Not shown: James Jarrell. Trust Company; and James Stewart. First National.
The Georgia Tech A l u m n u s