Banks’ customers brace for more service disruptions amid core system upgrades

Nigerian banks are set to experience continued service disruptions in the coming weeks as they upgrade their core banking systems to improve efficiency and customer experience.

These system overhauls, though aimed at enhancing service delivery, have already caused significant inconveniences, with customers unable to transact or access their funds during migration periods.

Several banks, including Sterling Bank, GTBank, and Zenith Bank, have begun transitioning to more advanced banking software.

Sterling Bank, for example, shifted from T24 to SEABaaS, a locally developed core banking application, leading to service outages that lasted for days.

Similarly, GTBank migrated to the Finacle system, while Zenith Bank recently switched to Oracle’s Flexcube software, causing a protracted disruption in services.

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Zenith Bank customers reported being unable to access the bank’s mobile app for days, despite announcements that services had been restored.

A source in the banking industry revealed that another tier-1 bank is also planning a core system migration, indicating that these disruptions may continue for millions of customers.

Industry experts point out that these upgrades are critical for improving security, flexibility, and cost-efficiency.

A backend developer from a top bank noted, “Migrating to a new core banking system is a complex process. It’s not just about switching on a new system; it involves moving customer biodata, integrating channels like ATMs, USSD, and internet banking. Stabilization after migration could take weeks.”

A core IT personnel explained that rising cybersecurity threats are a key driver behind these upgrades. “Banks are under increasing pressure to protect their systems from hackers. Migrating to more secure platforms is essential to mitigating these risks.”

Beyond security, cost is also a major factor. Banks spend significant amounts of foreign exchange on licenses and support for core banking applications, often sourced from foreign providers.

By upgrading, banks aim to cut these costs while enhancing their ability to handle growing e-business transactions.

However, customers are left to bear the brunt of these changes. “The disruptions are a bitter pill to swallow,” said a banking source. “But in the long run, these upgrades will enhance service delivery.”