The first Nigerian bank to report ₦905.57 billion in profits for the first half of the year, Guaranty Trust Bank (GTBank), is switching its core banking platform to Finacle. Finacle, built by Infosys, is an industry leader in digital and software banking solutions.
GTBank previously used Basis, a banking software that is also utilized by Providus and SunTrust, as its core banking platform. However, in September 2023, GTB finalized it core banking change to Finacle. To make the process seamless and to established a direct partnership with Finacle, some of the bank’s top management and tech team had to visit India, bypassing third-party vendors.
As per an insider familiar with the matter, the switching of the banking core was necessary for the bank because its previous banking software was giving problems, which usually led to occasional service disruptions. Another insider also emphasized that GTBank has chosen Finacle due its plans to integrate its banking and non-banking subsidiaries on a unified platform.
Rather than having different solutions that cater to different subsidiaries, the bank chose Finacle because it has modules for GT subsidiaries like wealth management and pensions. It was a good deal - the Insider said.
Finacle has also been used by other banks in Nigeria. This is to say that GTBank is not the first bank in Nigeria that'll use the Infosys's banking infrastructure. "At least 10 banks, including three of Nigeria’s biggest commercial banks" is using Finacle, as confirmed by TechCabal.
Another source familiar with the matter revealed that GTBank CEO Segun Agbaje made the final decision to switch the bank's core banking software to Finacle. In July 2024, Agbaje announced this change during a presentation to launch the bank's ₦400 billion capital raise, emphasizing the need for improved technology. "The technology needs to be better, more robust. We have Finacle, a good software that will take us where we need to go," he stated at the time.
However, the bank has committed that the ongoing migration, which commenced in the fourth quarter of 2023, from Basis to Finacle is facilitated to avoid disruptions of services to its large business and individual customer base.
Meanwhile, it's important to note that a change in a core banking system usually causes service disruptions (in a long-term or short time depending on how the bank can be able to handle it). A typical example is a report that surfaced that users of of Sterling Bank were unable to access the bank's app due to a migration to a newly developed custom-built core banking system.
"Changing the core banking software is like doing a heart transplant," an industry insider remarked.
GTCO's switch to Finacle highlights a growing trend among Nigerian banks to upgrade their technology systems. This request is driven by evolving technology requirements and the growth of digital banking.
As more banking customers rely on online and mobile banking services, many commercial banks in Nigeria, including GTBank are pressured to adopt more advanced, flexible, and reliable core banking platforms.
Finacle is widely recognized banking software and the platform is expected to improve efficiency and meet these evolving banking needs. However, the true measure of this trend’s success will be its impact on customer service and the seamlessness of the migration process
