Citigroup Plans Thumbprint ATMs For India's Poor 123
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.'"
Hm (Score:5, Insightful)
Numbers (Score:3, Insightful)
Unless these ATMs hand out 10 bucks (or equivalent) per press the user will still have to understand what they are reading on the screen. I accept that many Indians may not be able to write a letter but surely memorising a four digit PIN is not so hard?
Mixed feelings (Score:2, Insightful)
It is very unlikely that illiterate farmers will understand how exactly these ATMs work or for that matter, the banking system itself (which is so complex that most Americans don't understand all the fees and restrictions involved). This can inevitably lead to Citi, knowingly or unknowingly, taking advantage of these people who do not have the education, finances, and political power to protect themselves.
Although the farmers will hopefully be earning interest on these accounts, that interest really doesn't benefit the community. Think about it this way: you run to your local Citi branch and they lend out your money. The interest earned on those loans pays shareholders, the clerks at the desk, and the loan officers. All of these benefactors are members of your community. Do you really think these poor Indian farmers are going to work at the bank, either being a teller or repairing the ATM's? No, it will benefit the wealthier Indians and the international shareholders.
While it's great that Citi is trying to tap this market, they could've gone about it much better. They could've set up a physical branch, employed the more ambitious farmers, and helped pull these people out of poverty. Muhammad Yunus showed that simple systems such as micropayments could be profitable and beneficial for the community. I think he also showed that the poor doesn't need to be just another marker share; instead, you can simultaneously invest in people and reap a dual reward.
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How does this work? (Score:1, Insightful)
Re:Mixed feelings (Score:2, Insightful)
Illiteracy != stupidity. These farmers aren't from Mars; they can understand the concepts of fees and a balance just as well as the typical American. Will citibank try to exploit their illiteracy by complicating the fee structure to the point where it cannot possibly be remembered? Perhaps, but that isn't really any different than the mountains of legalese they throw at literate people. Besides that, word will spread quickly if people find that the banks are ripping them off, and no one will make deposits anymore, and then Citibank will just be left with an unused banking apparatus and a bad reputation.
> Although the farmers will hopefully be earning interest on these accounts, that interest really doesn't benefit the community. Think about it this way: you run to your local Citi branch and they lend out your money. The interest earned on those loans pays shareholders, the clerks at the desk, and the loan officers. All of these benefactors are members of your community. Do you really think these poor Indian farmers are going to work at the bank, either being a teller or repairing the ATM's? No, it will benefit the wealthier Indians and the international shareholders.
Yes, the interest will probably not stay in the community. But there is a considerable benefit in having one's money stored in the bank, rather than as a stack of bills at home, which has to be guarded. Given a choice between stashing your savings in a bank at zero interest or keeping a big wad of cash at home, you'd go with the bank, right?
Re:Hm (Score:1, Insightful)
http://www.justfuckinggoogleit.com/search.pl?quer
Re:Free money? (Score:1, Insightful)
1) Print readers do exist that can detect warmth, the electro-conductivity of the finger, and pulse. These readers are more expensive, and less reliable. Do you really think a bank would risk pissed off customers because no one who forgot their gloves on a cold day could withdraw their money from an ATM?
2) It's rather easy to make a thin overlay they fits on a finger, but has someone else's print. (See the James Bond movie Diamonds Are Forever for an example from 35 years(!!) ago). These can be made thin enough that your own heat and pulse can be read thru them.
This might be an insensitive question but... (Score:4, Insightful)
Re:This might be an insensitive question but... (Score:1, Insightful)