Banks are starting to roll-out the technology wherein clients are allowed to make a withdrawal from an ATM using just their smartphones, according to a report by The New York Times. JPMorgan Chase, which has the most ATM's in the United States among other banks, has introduced the technology to four test cities including San Francisco and Miami. Other banks such as Bank of America and Wells Fargo also plan to make the shift by the end of the year.

However, new technologies also introduce new threats. Banks are battling a criminal activity called "skimming" wherein hackers sabotage ATM's to steal information of a certain card owner and clear out their bank accounts. That problem was significantly reduced when banks replaced its magnetic stripe cards with chip cards.

Smartphone access, on the other hand, brings new problems to the technology. A certain client of Chase recently lost almost $3,000 from her bank account due to the bank's smartphone system. A thief was able to steal her smartphone and used the same to withdraw cash from her account. Chase's smartphone system doesn't require a four-digit PIN when being used at ATM's.

Meanwhile, other banks such as Wintrust Financial, has fared better with the new technology as the bank added the same to all 250 ATM's almost three years ago. The bank implemented multiple layers of security and there have been no cases of fraud so far.

Moreover, some banks also planned to use biometrics to perform bank transactions. Citibank experimented with an iris-scanning ATM two years ago which the company shown at a trade show. Users just need to look at the machine and money would come out. However, Citibank dropped its iris scanner as hackers are able to imitate someone's eyeball, which has been done before in a laboratory setting.

What do you think of using your smartphone to withdraw cash from an ATM? Write and share your thoughts on the comments section down below.