Nigerian Banks' Tech Upgrade Locks Customers Out

Nigerians Locked Out of Bank Accounts

Investigations revealed banks failed to adequately notify customers about migration.

Nigerian banks' migration to a new system has left customers struggling to access their funds. Get the latest updates on this developing story.

Nigeria's banking sector is undergoing significant upgrades. Sterling Bank pioneered this shift, migrating to SeaBaaS on September 10. However, customers faced prolonged difficulties accessing funds.

Other major banks—Zenith, Guaranty Trust (GTB), and First Bank—followed suit. Regrettably, these upgrades caused widespread disruptions, failed transactions, and customer inconveniences.

Core banking applications are crucial, managing customer accounts, transactions, and risk. They ensure seamless daily operations and timely account updates.

Investigations revealed banks failed to adequately notify customers about migrations and potential disruptions. Additionally, they neglected to prepare, especially elderly and tech-challenged customers, for the changes.

Nigerian banks' simultaneous migration to new core banking systems has been criticized for poor timing and lack of customer consideration. Inadequate measures to protect high-performing account holders resulted in significant financial losses.

The naira's devaluation has spurred banks to seek affordable core banking applications with equivalent services.

Security concerns, including cyberattacks and account hacking, necessitate migration to secure and fraud-resistant systems.

The modernization aims to boost flexibility, scalability, and future growth, enabling banks to adapt to evolving market demands.

New systems facilitate seamless integration with third-party providers, allowing banks to offer innovative customer services.

Although core banking upgrades don't necessitate CBN approval, banks usually notify the Central Bank of Nigeria as a courtesy before proceeding with such exercises.