Slashdot Mirror
Citigroup Plans Thumbprint ATMs For India's Poor
Brad Lucier points out
a Financial Times report (carried by MSN Money) that Citigroup is rolling out a network of biometric ATMs aimed at illiterate Indian slum dwellers. From the article: "The machines will recognize account holders' thumbprints, eliminating the need for a personal identification number, and will have color-coded screen instructions and voiceovers to help guide them through transactions... Though India's population exceeds 1 billion, Citigroup estimates that there are only about 300 million bank accounts in the country... 'It's not a philanthropic exercise,' [PS Jayakumar, a Citigroup business manager in India] said. 'For it to be sustainable, we should break even and make a little bit of money.'"
So instead of thieves stealing your wallet, they'll just cut off your thumb instead!
Citigroup has a target of 50,000 slum-dwelling customers. That means the total deposits might be $100 * 50,000 = $5million. Assuming Citigroup makes 5% on this, it's $250,000 profit opportunity. This barely justifies 25 ATMs and the effort to get these people banking. The reality is that Citigroup is trialling (a) biometrics and (b) low income banking. They are separate trials.. Slashdot readers all know that fingerprint reading has not yet reached the point we'd trust our own bank accounts to it. Citigroup know this too - they are using people with little to lose to carry out large scale experiments. If someone gets 'hacked'- it'll cost $100 to reimburse them. Tops. Much better there than here... Low income banking; China and India account for 1/4 - 1/3 of the world's population - and they are currently not very wealthy. Still, make a margin and there's a good volume. What's more - over time, they may become wealthy and it'd be nice to 'own' these economies...