GTBank faces backlash over service disruptions during upgrade

Guaranty Trust Bank (GTBank) has acknowledged the significant disruptions caused during its recent transition to the Finacle Suite of Core Banking Application Systems.

In a statement issued on Wednesday, the bank apologized for the inconvenience experienced by customers and reiterated its commitment to delivering enhanced service efficiency in the long term.

The upgrade, initially scheduled to be completed between October 11 and October 14, 2024, extended beyond the planned timeline, resulting in delays in transaction processing and interruptions to banking services.

The bank has since faced criticism from customers who were unable to access their funds or conduct transactions during the prolonged service outage.

GTBank explained that the transition to the new system was a strategic move aimed at improving its operational agility, adaptability, and service delivery.

The statement read: “When we began the process of implementing the new Finacle Suite of Core Banking Application Systems, our goals were clear: to remain agile as we grow, adaptable, and most importantly, to improve your service experience. Yet, we must humbly acknowledge the challenges along the way.”

The bank expressed gratitude to customers for their patience and understanding during the challenging period, acknowledging the impact of the disruptions on personal and business activities.

Despite the apology, many customers remain frustrated, citing the lack of access to funds and unreliable services during the upgrade. A business owner, Ms. Amina Oke, shared her experience:

“The delays in processing transactions cost me a significant deal. As a loyal customer, I expected better communication and contingency plans from the bank during the transition.”

READ ALSO: GTBank’s system upgrade sparks customer frustration amid service disruptions

Similarly, a financial analyst, Mr. Adekunle Akande, noted: “While system upgrades are necessary, GTBank’s inability to anticipate the scale of disruption raises concerns about preparedness and risk management in such critical transitions. Banks must invest in better customer communication during these periods to maintain trust.”

GTBank is not the only Nigerian bank to face challenges with core banking system transitions recently. Sterling Bank migrated from T24 to SEABaaS, a locally developed system, in September 2024, leading to days of service outages. Likewise, Zenith Bank experienced disruptions on October 1 while transitioning from Phoenix to Oracle’s Flexcube.

These disruptions have sparked debates about the readiness of Nigerian banks to adopt robust technological frameworks without compromising customer service. Industry insiders suggest other banks are also planning similar migrations but are reluctant to announce them to avoid customer panic and potential mass withdrawals.

Dr. Ifeoma Umeh, a banking technology expert, remarked: “Banks must balance the need for technological upgrades with seamless service delivery. The growing frequency of service outages suggests the sector needs stronger strategies for system migrations, including parallel testing and phased rollouts to minimize disruptions.”

On the economic implications, economist Dr. Samuel Oladipo added: “Service disruptions not only affect customer confidence but also hinder business operations, particularly for SMEs that rely heavily on banking systems for daily transactions. Banks must prioritize risk assessments and mitigation plans to address these challenges.”

As Nigerian banks adopt new core banking systems to enhance efficiency and compete in the digital space, the need for improved customer communication and contingency planning becomes critical.

While GTBank has reassured customers of its commitment to improved services, the episode serves as a lesson for the industry on managing technological transitions with minimal customer impact.