Nigerian bank customers, who are already facing some service Disruption in their daily banking transactions, are likely to face more service interruptions in the coming weeks and months as banks implement system upgrades to boost efficiency and improve customer service. Several banks have already begun the transition, resulting in challenges like customers being unable to access their money or complete transactions. According to industry insiders, more banks are set to start switching their core banking systems as they work to enhance their technological infrastructure.
While some industry insiders claimed that The Central Bank of Nigeria (CBN) had ordered the bank improvements, others pointed out that the banks were merely attempting to improve their operational services. All financial organizations now consider a core banking application to be an essential tool. These applications streamline banking operations, enhance customer service, and improve transaction management. Core banking solutions centralize various banking services such as deposits, loans, payments, and account management, enabling real-time processing and data access.
Customers who received salaries were left stranded.
Last month, when tier-2 Sterling Bank started the transition of its systems from T24 to SEABaaS, a new custom-built core banking application locally developed, its customers were faced with service disruptions that lasted for days. Several consumers were consequently unable to access any of Sterling’s financial channels, with many of them voice their grievances on social media. Similarly, it was reported that GTBank is in process to switch its core banking solution earlier this month during the period which left many customers stranded and unable to complete transactions. On October 1, Zenith Bank announced that there would be service interruptions for a few hours due to routine maintenance.
In contrast to the bank’s declaration that operations would continue until 2:30 pm on the same day, the consumers were unable to access their money for more than 48 hours following. Many of the bank’s customers who received Salaries during that time were left stranded since they were unable to withdraw money. After more than 48 hours of disruption to its banking services due to an IT upgrade, the bank declared via a statement on its X handle that it had made progress and that customers could now transact through all of its channels.
Access Bank has also planned a system maintenance.
Following the IT Infrastructure upgrade, the bank additionally announced additional improvements to its service delivery on October 4th. For quicker processing, customers with large salaries and payment mandates were encouraged to refer them to any Zenith Bank branch across the country. According to reports, Zenith Bank is switching to Oracle’s Flexcube platform, which is utilized by numerous other Nigerian banks, from Phoenix, a program created by London-based Finastra. Additionally, Access Bank has also planned a system maintenance that would cause a brief interruption to some banking services.
The Bank notified its customers via email that there will be at least eight hours of maintenance on Saturday, October 12, 2024, from 10:00 p.m. to 6:30 a.m. on Sunday, October 13, 2024. Customers may have trouble completing transactions during this time, the bank said, particularly when using ATMs and internet banking services. It clarified that the interruption is necessary for a thorough system overhaul that will improve customer banking. Transferring massive volumes of data and implementing more stringent measures than routine IT maintenance is necessary when banks decide to replace their core banking software.
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Recently, Nigerian banks have been investing more on IT infrastructure since more and more of their customers utilized electronic transactions, which means they need to increase their capacity to handle the demand. The need to fortify banking systems’ cybersecurity Architecture results from the rise in cybersecurity threats brought on by the expansion of e-business transactions. The increasing need for digital banking coupled with the growth of mobile and online banking means that banks need core banking systems in order to stay competitive, adhere to regulations, and provide smooth financial services to technologically aware customers.