Guaranty Trust Bank (GTBank), a leading Nigerian financial institution with 32 million customers, has issued a public apology for a seven-week service disruption caused by its migration to a new core banking system. This marks the first time the bank has directly addressed the challenges faced by its retail customers during the transition.
The Scale of the Disruption
The disruption, which left many customers unable to access funds or complete transactions, drew significant backlash. GTBank’s extensive retail deposits—amounting to ₦7 trillion—amplified the impact of the downtime.
“I could not access my funds for seven weeks. The banking app did not work at all, and I had to use the web app, which was inconvenient,” said Oyegbile, a GTBank customer.
The Transition to Finacle
GTBank confirmed its migration to Finacle, a core banking application developed by Indian software giant Infosys. The decision to adopt Finacle followed a visit by GTBank’s top management and tech team to India in Q4 2023, where they negotiated a direct partnership with Infosys.
While the switch to a modern core banking system is aimed at enhancing service delivery and scalability, the prolonged service disruption has tested customer loyalty.
Bank’s Apology and Customer Support
“Your patience and support during this recent transition to a new core banking system have been nothing short of extraordinary,” the bank said in its public statement on Wednesday.
The apology acknowledges the considerable frustration caused to customers and signals GTBank’s recognition of the critical importance of ensuring uninterrupted access to funds—a fundamental promise of banking.
Impact and Future Outlook
GTBank’s migration to Finacle is part of a broader effort to modernize its banking infrastructure and improve service reliability. However, the extended disruption highlights the challenges of implementing large-scale technological changes in a sector where reliability and customer trust are paramount.
To rebuild confidence, GTBank will need to:
- Ensure the stability and efficiency of its new core banking system.
- Communicate proactively about future updates or potential service changes.
- Offer compensatory measures to affected customers as a goodwill gesture.
As competition intensifies in Nigeria’s banking sector, addressing these concerns effectively will be crucial to retaining customer trust and loyalty.