The frugal innovation case of solar-powered Automated Teller Machines (ATMs) of Vortex Engineering in India

Constraint-based innovations are innovations that are conceived under conditions of scarcity for resource-constrained markets, often referred to as Bottom of pyramid (BoP) marketplace. One such type of constraint-based innovation, frugal innovation (also the focus of this study) has played an impor- tant role in providing affordable and accessible products and services to the customers at BoP.This study examines one of the successful frugal innovations from the Indian financial sector called Vortex solar based transaction systems (commonly known as rural ATMs) and offers a comprehensive analysis on the incorporated bottom-up product development process and innovation drivers. Study highlights the nine specific innovative design features of these machines that were mainly designed based on core customer requirements and unique challenges. Analysis reveals the importance of cost effective, easy to operate and sustainable solutions for customers at BoP and also showcase how frugal innovations are also facilitating solutions to address larger societal problems.