Smart Automated Teller Machine (ATM) Card: Exploring the Active and Inactive Card Holders’ Behavior

In support of the government’s intention for malaysians to be it savvy, in october 2003, malaysian consumers were forced to use the newly introduced smart atm cards by all 12 existing financial institutions in the country. a lot of money was spent to upgrade the atm systems by the industry, so it is important to find out whether the expensive investment was worth it. this study explored two behavioral issues: one, to find out smart atm cardholders’ awareness of the card multifunction ability, and two, to find out whether demographic variables and type of card transactions carried out can differentiate ‘active’ and ‘inactive’ card users. a group of sungai petani’s smart atm card users were used as samples in the study. interestingly, the study found that consumers’ awareness of the other functions of the card (i.e. as debit card and e–purse apart from being an atm card) to be low. it is also found that only ethnicity and the number of cards possessed to be significant factors differentiating the ‘active’ and ‘inactive’ users. although exploratory, these findings contribute towards better understanding of current smart atm card market and its consumers in malaysia. financial institutions such as banks and their partners have the opportunity to identify their typical active/inactive card holders’ behaviour which will help them to develop strategies to induce ‘inactive’ users to ‘active’ ones.