Nigerian banking industry braces for more outages as GTBank undertakes core system upgrade

Joy Agwunobi 

Nigerian banking customers are gearing up for another period of service disruption as Guaranty Trust Bank (GTBank) readies to switch its core banking system to a more advanced Finacle platform. This transition, slated to occur between October 11 and October 14, 2024, will cause temporary downtime of both in-branch and digital banking services as the bank migrates to the new system.

This move follows a growing trend among Nigerian banks, with many upgrading their systems to enhance operational efficiency.

In an official statement released recently, Guaranty Trust Bank (GTBank) informed its customers that all its branches nationwide will close early, at 12:00 p.m., on Friday, October 11, as part of the transition to the new core banking system. Normal operations will resume at 9:00 a.m. on Monday, October 14.

In addition, GTBank alerted its customers that its digital banking services, including its mobile app, online banking, and other electronic channels, will be temporarily unavailable for approximately 11 hours between 10:00 p.m. on Sunday, October 13, and 9:00 a.m. on Monday, October 14.

GTBank reassured customers that essential transactions such as fund transfers, bill payments, and airtime purchases will remain available through its digital platforms during the transition. However, other services will be temporarily unavailable.

In its notice, the bank stated, “We will ensure that you are able to perform limited transactions via our digital channels during the upgrade period. While this migration may affect other banking services temporarily, we are committed to minimising any inconvenience to our customers.”

The bank further emphasised that the system migration is part of a larger strategy to improve its digital infrastructure and enhance the overall customer experience. “This transition to a more robust banking platform will enable us to deliver a more efficient and frictionless experience across all our customer touchpoints. We are committed to leveraging the latest technology to meet the evolving needs of our customers,” the statement added.

GTBank also noted that customers would be updated regularly on the progress of the upgrade, while expressing apologies for any inconvenience the system changes might cause. “We deeply regret any disruption this may cause and appreciate your understanding as we work to enhance your banking experience. We will keep you informed every step of the way as we make progress,” the bank said.

This system upgrade aligns with an increasing shift among Nigerian banks that are increasingly adopting new technologies to improve service delivery and customer satisfaction. Recently, several other financial institutions have undergone similar transitions as the  push for migration to new core systems is driven by multiple factors, including security, cost management, and operational flexibility

Sterling Bank was one of the first to experience service disruptions when it migrated from its T24 platform to SEABaaS, a locally developed core banking solution. Customers of Sterling Bank reported prolonged service outages in September due to the upgrade.

Access Bank also recently announced its own system migration, scheduled for Saturday, October 12, 2024, to enhance its infrastructure. The bank advised customers to avoid online transactions during the transition, as there will be a shutdown of services for several hours. 

Other banks, including Zenith Bank have also embarked on system upgrades this year to improve operational efficiency and customer service. Zenith Bank faced service interruptions on October 1 when it moved from Phoenix, a core banking application developed by Finastra, to Oracle’s Flexcube system. The bank had initially described the issue as “routine IT maintenance,” but later acknowledged that the migration to a new platform was the cause of the outage.

In light of these ongoing transitions, experts warn that customers should be prepared for potential service disruptions as more Nigerian banks move to upgrade their core banking platforms. An industry analyst noted, “Many banks are adopting new systems to improve efficiency and respond to changing customer needs. However, the initial migration process often comes with challenges that lead to temporary service outages.”