Blue Ocean Strategy - Thumbs up to India’s banking sector

Blue Ocean Strategy - Thumbs up to India’s banking sector

"The main problem is that most farmers are illiterate and only speak local dialects…The farmers couldn't remember their PIN codes and didn't understand the on-screen instructions.” – Sunil Udupa, CEO of AGS Infotech

Stashing cash underneath the mattress or in the freezer may seem like a cartoonish way to keep money safe, but, in many parts of the world, especially where devices such as ATMs aren’t quite understood by the local population, many still continue this practice. But a recent Wired article suggests that this is all about to change in the Indian banking sector.

Using a Blue Ocean-like approach, blue ocean strategy, proponents in India have begun installing ATMs which dispense cash based on reading a thumb print, rather than inserting a PIN code. The thumb print-based ATM clears the path to new market space of millions of potential new users, bypassing one simple obstacle which has, until now, kept ATM banking in a pretty confined territory: the PIN code requirement.

By developing a fingerprint interface with audio and visual instructions that could be easily understood and by eliminating the need for the oftentimes forgotten PIN code, officials believe that this new ATM system will allow billions of rupees currently being held in private hands to flow into the banking mainstream.

This advancement is particularly reflective of Blue Ocean Strategy’s much coveted win-win scenario. For example, the article states that this seemingly trivial innovation will triple the number of ATM in India within a couple of years. And for the poorer segments of society who are the new customers, the thumbprint-based ATMS will help to shelter them from theft and widespread corruption.

We file this story alongside other banking industry success stories we’ve reported on in the past, such as Bank of America’s Keep the Change program and Italy’s highly subscribed Postepay service. Do you see other ways in which the banking sector is applying Blue Ocean Strategy, or perhaps ways in which you wish it would apply Blue Ocean Strategy? Share your thoughts with us!