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Internet banking: The digital voyage of banking and money in cyberspace

1999; Taylor & Francis; Volume: 8; Issue: 3 Linguagem: Inglês

10.1080/13600834.1999.9965811

1469-8404

Sofia Giannakoudi,

Banking stability, regulation, efficiency

Abstract Extensive globalizing processes and technological innovation have transformed cyberbanking from a sci‐fi dream to a demanding reality unfolding in the infinite geography of cyberspace. After approaching Internet banking as the most revolutionary stage of the evolutionary process of banking so far, this paper will try first to identify both its positive and negative implications. Second, it will detect the technical vulnerabilities of the Internet banking system and suggest security measures and controls which could contribute substantially to the creation of a secure operational environment where banking activities and the issuance of electronic money would safely take place. A large part of the paper will deal specifically with legal issues focusing mainly on privacy and crime in cyberbanking, consumer protection concerns and the examination of the contractual relationship between banks and their consumers in cyberspace. The last part of the paper will analyse the implications of Internet banking for central banks which are called to reconsider their monetary and supervisory policies and reform the regulatory framework within which cyberbanking will evolve. It is in this context that, finally, the paper will attempt to answer the crucial question of whether and how Internet banking should be regulated.