Guaranty Trust Bank (GTBank), Nigeria’s leading bank that posted a historic ₦905.57 billion in half-year profits, is making a bold move by transitioning its core banking platform to Finacle, a global software developed by Infosys. The migration is part of a strategy to streamline and integrate its diverse subsidiaries into a unified digital platform.
This shift comes after the bank faced recurring issues with its previous software, Basis, which contributed to occasional service disruptions. The transition was finalized in September 2023, following visits by top GTBank management to India, where a direct partnership with Infosys was established, bypassing third-party vendors. One source close to the matter stated, “The decision was largely influenced by the need for more robust technology to support their growing operations.”
Finacle’s robust architecture offers modules for various banking services, including retail, corporate, wealth management, and pensions. According to insiders, this made it an ideal choice for GTBank, which aims to consolidate its banking and non-banking subsidiaries, such as pension management and wealth advisory, on a single platform.
The move to Finacle signals GTBank’s focus on enhancing customer experience by ensuring a more stable and scalable system for its operations. GTCO’s CEO, Segun Agbaje, hinted at the upgrade during a July 2024 capital raise presentation, where he emphasized that Finacle’s capabilities would lead to greater operational efficiencies. He stated, “The technology needs to be more robust… Finacle is a good software that will land us where we need to go.”
This migration reflects a broader trend among Nigerian banks adopting advanced technological infrastructures to support their expanding digital offerings. Finacle is already in use by 10 Nigerian banks, including industry giants like Access Bank and Zenith Bank. GTBank’s decision to switch to the software highlights its trust in Finacle’s market dominance and functionality.
However, core banking migrations carry risks. A source with knowledge of the process warned of potential short-term disruptions, comparing the migration to a “heart transplant” for the bank’s operations. Indeed, Sterling Bank recently experienced significant downtime during its core banking migration. However, GTBank is reportedly taking steps to ensure a smooth transition to avoid service disruptions for its large customer base, with the process set to extend through Q4 2023.
In Nigeria’s evolving banking landscape, GTBank’s migration to Finacle is not just a technical upgrade—it is a strategic play to future-proof its operations while maintaining customer trust. As the bank works toward integrating its subsidiaries and improving digital services, all eyes will be on how seamlessly the migration is executed and whether Finacle will deliver on its promise to enhance operational efficiency and customer service.