Assessment of Legal Challenges Relating to E-Banking in Financial Institutions

Abstract

This research was carried out to assess legal challenges relating to E-Banking in financial institutions: A study of Commercial banks in Dodoma, Tanzania. This research was worth exploring since there is a high rise of E-Banking service users and the users are not aware of the legal implication of such services which in turn is the biggest challenge to E-Banking services. The objective of this research was to explore the challenges brought by the E-Banking system in relation to the Legal system in Tanzania by focusing specifically on legal risks that a customer is likely to face in e-banking, also the insecurity phenomenon associated with E- banking. Data gathering was done through: Interview, Questionnaire and literature review. The sample of the study consisted of 100 respondents. Respondents were randomly selectedfrom the streets who are commercial bank customers. The findings show that there are network problems, no governing laws/policies on e-banking, e- banking charges are high, authentication issues, losses in case of mistaken payment and no refund in case of an incompletetransaction.