BANKING, CUSTOMER RIGHTS, AND POLICY EFFECTIVENESS: RETHINKING FINANCIAL INSTITUTIONS IN DEVELOPING AND DEVELOPED ECONOMIES

This paper explores the paradox of banking in developing economies, where financial institutions simultaneously depend on customer deposits for profit-making ventures while burdening those same customers with exploitative charges, poor service delivery, and restricted access to funds. Focusing on Nigeria and Ghana, and drawing comparisons with the United Kingdom, the study reveals how weak regulatory enforcement, technological inefficiencies, and governance gaps undermine trust in banking systems and perpetuate socio-economic inequalities. Through qualitative analysis informed by field observations, institutional case studies, and theoretical frameworks such as institutionalism, stakeholder theory, and social justice, the paper demonstrates that customer exploitation in banking is not merely a business practice but a governance and accountability issue. Evidence from fintech and microfinance models, including Opay, Kuda, and Moniepoint illustrates how innovative, customer-centered approaches are expanding financial inclusion and reshaping expectations of financial service delivery. The findings suggest that effective policy frameworks, stronger consumer protection mechanisms, and deliberate support for technological innovation are critical to rebalancing the relationship between banks and their customers. Ultimately, the paper argues that sustainable development in emerging economies requires financial systems to function as instruments of social justice rather than tools of exclusion.