In the rhythm of everyday life, cash is no longer king in Ghana. The hum of Automated Teller Machines (ATMs), the glow of mobile banking screens, the instant ping of notifications are now part of the soundtrack of survival. We move money faster than ever, bridging distances and hours, reshaping our understanding of convenience. Yet with speed comes fragility. Technology is only as trustworthy as those who operate it and those who depend on it.
ATMs were meant to offer freedom. A withdrawal at midnight, a balance check before dawn, a simple beep signaling control over one’s finances. But alongside this promise lies uncertainty. When accounts are debited without consent, when PINs are compromised, when digital transactions vanish, the question becomes who bears the loss: the customer or the bank?
Ghanaian courts have wrestled with this tension, and no case illustrates the stakes better than Tsegah v Standard Chartered Bank (Ghana) Ltd.
ATMs and the Balance of Convenience and Risk
Electronic banking is, at its heart, a marriage of speed and trust. ATMs are the most visible expression of this union. They offer access to cash, account information, and the ability to perform other banking services without ever speaking to a teller.
ATMs were introduced globally by Barclays Bank in the late 1960s and have been refined over decades. They were designed to extend banking services beyond traditional working hours. Security measures such as PINs were added to protect users. Over time the system would grow more sophisticated. Yet no system, however advanced, is perfect. Even the most reliable ATM cannot escape human error or technological limitation.
In Ghana, as elsewhere, the lure of digital banking is tempered by the occasional sting of error or fraud. Every so often, the law is called to untangle the responsibility when technology fails.
The S. A Tsegah v Standard Chartered Bank Dispute
In Tsegah v Standard Chartered Bank, the plaintiff was a customer confident that his funds were safe. In April 1999 he presented cheques totaling ¢850,000 only to discover they were dishonoured. A review of his account revealed multiple ATM withdrawals had been debited without his knowledge. Some transactions occurred repeatedly in a single day. More troubling, parts of this period coincided with the plaintiff’s hospitalization. He testified that his ATM card had remained locked away in his wardrobe and could not have been used by anyone else.
He reported the matter immediately, alleging fraud. The bank rejected his claim. It insisted the transactions were authorised and pointed to the uniqueness of the PIN. According to the bank, the customer must bear responsibility if the ATM card was misused.
Decision of the Court: Meeting the Customer’s Lived Reality
The High Court approached the case with a realism often missing from discussions about technology. ATMs, after all, are computers, and computers err. The bank itself admitted its system was not foolproof. The court noted that the bank failed to involve law enforcement despite the plaintiff’s request, instead prioritizing its reputation over transparent investigation.
The plaintiff’s story was found credible. The pattern and frequency of withdrawals combined with his incapacitation demanded investigation. The court concluded that the bank had been negligent and failed to operate an ATM system with adequate safeguards. The judgment was entered in favor of the plaintiff.
Lessons From the Case
Though over two decades old, Tsegah v Standard Chartered Bank remains relevant in Ghana’s increasingly digital economy. Technological efficiency does not remove the bank’s responsibility to act fairly and transparently. Customers must be vigilant and report anomalies promptly. Banks must invest in fraud detection and respond openly when questions arise.
This case also signals a deeper truth, that as digital finance spreads, law and justice must keep pace. Systems may evolve, but principles endure. Trust, fairness, and the courage to confront error are not merely legal concerns but the moral fabric that underpins the financial lives of millions.
Tsegah v Standard Chartered Bank reminds us that ATMs are more than machines. They reflect trust between citizens and institutions. When that trust falters, the law must act with both precision and humanity. Technology may move money faster but justice measures the human cost.
