Published 14th Oct, 2024

By Tola Owoyele

In a bid to keep up with the ever-evolving banking system, most Nigerian banks recently conducted upgrades to their core banking applications.

This trend began with Sterling Bank on September 10, when it migrated to a new core banking system called SeaBaaS.

As a result of its migration, the bank’s customers experienced some challenges and were unable to have access to their funds for weeks.

Following the bank’s switch to a new core banking system, fellow financial institutions like Zenith Bank, Guaranty Trust Bank (GTB) and First Bank also took similar steps.

The banks’ actions ultimately led to several service disruptions, failed business transactions, customers getting stranded and customers’ inability to pay for services or make purchases.

WHAT IS A CORE BANKING APPLICATION?

A core banking application is a software banks use in managing their critical processes such as customers’ accounts management, transactions and risk management.

It processes daily transactions and posts updates to accounts and other financial records.

WHERE DID THE BANKS GET IT WRONG?

In terms of the errors made by the banks during the migration process, FIJ discovered that they failed to adequately notify their customers about the impending migration and subsequent disruptions.

The banks also failed to train and adequately sensitise elderly customers, who are not technology-compliant to prepare them for the impending software update action before carrying it out.

Many of the banks also chose to implement the migration exercise during the same period. The move by the banks was not measured and customer-focused.

The financial institutions in this category also failed to come up with various stop-gap measures that could help customers with high-performing accounts from losing huge sums of money during the migration exercise. In this regard, the banks failed to provide a temporary solution that could enable a seamless, phased transition without disrupting day-to-day operations.

WHY IS THE MIGRATION EXERCISE NECESSARY?

Given the ongoing devaluation of the naira, many Nigerian banks are now compelled to switch to cheaper core banking applications that are capable of rendering the same service formerly rendered by expensive applications.

Security issues such as constant cyberattacks and hacking of accounts by fraudsters have also made the banks to deem migrating to more secure and fraud-resistant applications necessary. The migration trend is largely about safeguarding bank accounts against threats of account hacking and money swiping by cybercriminals.

Modern core banking systems provide banks with increased flexibility and scalability to address ever-evolving market demands and future expansion plans. These systems and platforms also connect seamlessly with third-party providers, allowing banks to open up their ecosystem to offer new and innovative services to their customers.

The exercise also allows for routine maintenance and upgrade of core banking applications.

DOES THE MIGRATION PROCESS REQUIRE CBN’S APPROVAL OR DIRECTIVE?

Core banking upgrades or migration exercises do not require the Central Bank of Nigeria (CBN)’s authorisation, approval or directive.

Banks may, however, out of courtesy inform the CBN about their plans whenever such exercises are to be carried out.

More importantly, customers’ funds are always safe during system upgrades and migration exercises.

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24 replies on “GTB, Zenith… Why Nigerian Banks Are Migrating to New Core Banking Systems”

Good day we heard all the explorations about the banking issues ,but like how many days it will take the banking to resolve the issue , but as I am since on 14th of October I am not with my self anymore do to the problem of the banking issues from gtb

Well that problem was two morh i thank God for everything

Nigeria don’t have respect for their citizens they should have informed theirs customers before carry on the exercise, if the government don’t have so the foreigners can do the same because nobody can questions themes, Nigerian have sell their birthright to their enemies may GOD by HIS multitudes of his mercy help and save US and deliver us from the Hands of the wicket government in JESUS Name Amen 🙏.

Banks doing any upgrading simultaneously and with short notices is not customer-friendly at all. It has caused a lot of inconveniences to us. This process should have been staggered.

Every is boss, Banks are equally boss to their customers. No information, people money are trapped while hunger is thriving.

I think the banks should inform their customers about their upgrade on radio and television if possible on television cos only text messages will not the work as some people thag check their messages

GTBank sent out notifications to their customers yesterday that they have successfully migrated to the core banking system, and that customers could once again begin to enjoy seamless transactions, but I tried transacting on their mobile app and USSD yesterday, but neither of them functioned. That for me was outrightly deceptive and misleading.
When will they fix this wahala and relieve Nigerians of stress? How can Nigerians be suffering on this massive scale. Everywhere and everything is tough, yet people cannot access their hard-earned money in the custody of the banks.
I really do not see any sense in all these needless sufferings. Everyone who is responsible for making policies that affect the masses (whether government or individuals) should do well to always take the general interest of the masses into consideration.

I’m not against this upgrade but the banks are supposed to inform their customer ahead

both the political system and the Financial system still wants to cage our Generation in bandage,…..una plan no fit work again
Pluto wayyysss till die kingdom come 🤣🤣🤣🤣🤣

both the political system and the Financial system still wants to cage our Generation in bondage,…..una plan no fit work again
Pluto wayyysss till die kingdom come 🤣🤣🤣🤣🤣

I can’t believe am not getting access to my bank GTBANK

But how many days will it take?

The whole process made a big mess of the Banks reputation and customera confidence.

We wish that someday such actions can be handled more effectively and compensation plans can be introduced.

They really shocked everyone.

What are you supposed to do now

Thank especially did not sensitise their customers on this move.

It seems banks have joined the terror list, putting hardship on the masses. 1. Electricity distribution companies 2. Gas distribution companies 3. Petroleum distribution 4. Water distribution at state levels 5. Transportation increases anyway 6. Food prices increase every second. 7. Government ways and means borrowing to share and taxation ignoring cannon of taxation, etc. Now, the fear of banking is the beginning of wisdom.

Majority of our banks are 419. They don’t treat customers with respect and even steal from our money through unnecessary deductions that we never bargain for. Majority of their staff are involved in defrauding their customers of their hard earned money.

After all these explanations…., how many days would it take till all these is resolved?
I have a pensioner who can’t assess his money for over a week now, and you know what that means.. First Bank.

This caused people to panic unnecessarily with news flying left and right that they are about to close down. They failed to inform their customers which is very wrong. And this kind of exercise is supposed to be widely publicised and planned in such a way that it will not take more than 72 hours.

This is not OK! At all .
How can you guys can’t even fixed it right at one … GTBank is even worse.. please and please Do the need full thing

Since on 4th Of October till date, money that I transferred to my Zenith Bank account has not been credited

I deposited money from my Opay wallet to my guaranty trust bank. On the 20 August 10Thousand and on the 13 August 2 Thousand Naira when to the bank to withdraw just to hear that I don’t have anything in my GT bank account
I am confused now you should look into it

I transferred money from my OPAY account to Gt bank. Till now the money has not dropped. I can transfer money from GT bank to other bank. Pls they should refund my money.

Such banking upgrades that would heavily impact customers ability to access their accounts and funds, should be regulated by the CBN. There should be a threshold period of downtime that should require CBN’S monitoring to ensure banks have met reasonable notice of information to their customers so majority may be carried along. Without such monitoring banks can and do perform any act without consideration for their customers and they will blanket it all under the guise of upgrades!! Many showed up to GTB one day n discovered it was closed early, such disregard shouldn’t be condoned. Zenith Bank upgrades grounded many customers for weeks and the effects of this remains. CBN needs to do more and consumer agencies need to wade into matters like these without needing the public’s petitions! They should use online tools to monitor consumer complaints becos Nigerians severely lack a culture of law suits n complaints n consumers agencies have stayed too long out of what affects Nigerian lives! All these need to change for our country to get better!