Financial Institutions, Customer Rights, and Policy Effectiveness: A Comparative Analysis of Banking Practices in Developing and Developed Nations

This paper interrogates the structural inequities in the relationship between financial institutions and their customers in developing economies, with a particular focus on Nigeria and Ghana. Drawing on field research, interviews with banking officials, and analysis of fintech innovations such as Opay, Palmpay, Moniepoint, and Kuda, the study contrasts customer experiences in these contexts with practices in developed nations like the United Kingdom. The findings reveal that banking in much of Africa operates less as a driver of inclusive development and more as a profit-centered system, characterized by excessive charges, weak regulation, and limited customer protection. These dynamics deepen economic inequality, erode institutional trust, and constrain financial inclusion. By contrast, banks in developed nations demonstrate stronger accountability frameworks, competitive practices, and customer-oriented services that enhance both trust and development outcomes. The paper argues that sustainable development in emerging economies requires urgent policy reforms that center on customer protection, financial inclusion, and institutional accountability. It calls for governments, regulators, and financial actors to prioritize fairness and access as foundational to economic growth and social justice.