European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.7, No.4, 2015 230 An Appraisal of the Relationship between Banker and Customer in Nigeria Kabiru Garba Muhammad Lecturer, Faculty of Law, Usmanu Danfodiyo University, Sokoto – Nigeria Abstract The relationship subsisting between banker and customer is basically contractual and fundamentally that of debtor and creditor. It also consists of general and special contracts arising from the particular requirements of the banking business. As such, the relationship existing between banker and customer cannot be exhausted. This is so as new banking services and products are emerging continuously. Therefore, the services rendered or products sold by bank to its customer would always determine what relationship subsists between banker and customer at any point in time. Every type of contractual relationship naturally imposes some rights and duties on the contractual parties; and this fact extends to banking relationship. The relationship exacts a number of obligations on banker and customer as well as corresponding rights on the banker and the customer respectively. In view of this, the paper appraises the relationship that exists between banker and customer, analyzing the rights and duties of banker and customer respectively. It also demonstrates the special relationships that underline a banker – customer interaction. These include bailment, agency, lease, mortgage, trusteeship and executorship. The linkages are in terms of the transactions. 1. Introduction The focal point of this paper is on the relationship that exists between banker and customer. The paper discusses nature of banking by defining banker, banking business and customer. It goes further to discuss the rights and duties of banker and rights and duties of customer as well as the duties of intermediary service provider. One of the greatest concerns of every business organization is customer satisfaction. In the banking industry, most customers are motivated by accuracy of records and timely provision of services. Particularly, most of them measure the service standard of banks on how timely transactions are completed. The development of e-banking has changed the banking relationships of the personnel and that of the customer, which has many advantages over the traditional banking. This includes saving cost, marketing and communications, the offering of services regardless of geographic area, time and it increases customer base. 1 The paper begins with nature of banking in order that it serves as a prelude to the main focus of the discussion in the paper. 2. Nature of Banking It is arguable whether banking is a trade or a profession. It may be seen as a trade because the word ‘customer’ is used for the end user of the products and services as opposed to the word ‘client’ used for the end user of the services by other professionals. Likewise, it may be viewed as a profession because it has its own skill and knowledge distinct from other human activities. It also has code of conduct set for its practitioners. It was opined by Afolabi that: Banking business is no doubt a trade not only because they employ the word ‘customer’ but also because of the buying and selling involved in banking which is central to all trading activities whether the objects of trade be goods, services or combination of them. However, as an occupation, banking is a profession because it has its own distinct body of knowledge which distinguishes it from other aspects of human endeavour. For example, most people will appreciate that any skill acquired in the area of deposit keeping, lending and foreign exchange transactions are in the arena of banking. This body of knowledge has been developed over time and will continue to adapt itself to modifications as may be necessary based on the changing circumstances and realities of different periods. The assimilation and mastery of this knowledge require time and dedication and any person who has acquired the requisite standard, judged by success in relevant examination and experience or any other approved method of assessment will be issued with a certificate which authenticates the holder as a professional in banking and also imposes on him, a set of professional codes and ethical standards. However, like all others, the banking profession requires due appreciation of supportive discipline like Accountancy, Law, Economics and quantitative techniques. 1 A. A. Agboola, “Optimizing the use of Information and Communication Technology in Nigerian Banks”, Journal of Internet Banking and Commerce, (2008), Vol.13, <http://www.arraydev.com/commerce/jibc/2008- 04/Agboola_fianl_accepted.pdf>.(28 December 2012).