Since more people throughout the world are using financial services for savings and necessary transactions thanks to online commerce, access to basic bank accounts and consumer credit have grown in importance in the modern economy. If implemented responsibly, these innovations—in particular, easier access to consumer credit—can increase consumer welfare, boost purchasing power, and even help end poverty. However, a surge in reckless lending practices and consumer over indebtedness has accompanied the quick creation of credit products and the fast increase in the usage of financial services, especially in emerging market economies. In order to increase financial consumer protection, new reforms were consequently implemented on both the national and international levels. These changes are based on a set of high level principles and best practices. Although international principles offer a fundamental basis for consumer protection, they are merely advisory and non-binding in nature. This begs the question of what impact they might have on national legal systems, particularly those in emerging and developing countries where protecting financial consumers is essential. The most vulnerable nations are those in developing regions because their populations lack experience and knowledge of financial products, making them particularly susceptible to sudden shifts (like the substantially increased penetration of financial services). Regulators, on the other hand, frequently find it difficult to keep up with new developments in the financial markets and may be reluctant to take action because the granting of credit is seen as being advantageous for the economy. This essay examines the best ways to improve financial consumer protection in order to boost economic growth, improve financial stability, and improve consumer welfare. The paper will concentrate on deposit protection and consumer credit regulation while analyzing several conceptual models to improve financial consumer protection, such as social inclusion of vulnerable consumers, capability-based empowerment, and responsible lending.