LEGAL ISSUES IN CREDIT ADMINISTRATION IN THE ELECTRONIC PLATFORM
Abstract
Introduction
Business transactions in today's economy are carried out more efficiently and effectively mainly because world over, focus has shifted from a predominantly cash dependent market to less cumbersome, simpler means of transacting business such as the use of various means and forms presented through electronic platforms otherwise known as electronic commercial transactions. Banks play a critical role to electronic commerce either because they enable payments to be made directly or they simply enable electronic credit which further facilitates commerce. As a result of this growth in electronic commerce, banks are conducting their business with ever growing assistance of telecommunications and telecommunications based tools.
The provision of banking services including credit administration on electronic platforms is what is referred to as electronic banking.2 This method of providing banking services has revolutionized the banking industry and its market. Banks primarily provide two major services: taking deposits and giving out credits. However, our focus will be to a large extent the provision of credit and its administration on the electronic platform.3 Indeed, in the words of Wolfgang Wiegand "e-banking is a part of e-commerce, which is both one of its most significant products of (Information) Technology and one of its moving factors....it is therefore a challenging task for any lawyer to speak or write about e-banking. It is even more fascinating if this is combined with the banker/customer relationship". For the reasons that will be discussed in subsequent paragraphs, it may also be dangerous (especially in front of this kind of audience) to discuss the legal aspects of the banker/customer relationship in e-banking.
