4 Nigerian Banks Give Notices of Closure, Internet, Mobile Banking Affected, Customers Worry

Three commercial banks in Nigeria are undergoing technology upgrades, which might affect banking services
Guaranty Trust Bank and Access Bank have given notices that they will embark on technology upgrades, which will last for hours and even days
Earlier, Zenith and Sterling banks upgraded their technology platforms to new software, causing prolonged downtime

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Commercial banks’ tech upgrades in the past few weeks have caused severe concerns to customers, sending panic into bank customers in rural areas.

The situation is set to get worse as more banks announce that they will be upgrading their technology infrastructure in the coming weeks.

Four Nigerian banks announced plans to embark on routine maintenance
Credit: NurPhoto/Contributor
Source: UGC

Zenith Bank apologises to customers

According to reports, Sterling Bank customers tasted the bitter pill of frustration after the bank began migrating its systems from T24 to SEABaaS, a new, locally-developed core banking application, causing disruptions that lasted for days.

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Zenith Bank stated on October 1, 2024, that it was undertaking routine maintenance on its IT infrastructure to improve service quality.

Media sources disclosed that the tier-1 bank migrated its core banking platform from Phoenix to Oracle’s Flexcube, thereby shutting out many customers as the operations lasted several days.

The bank later apologised for the inconvenience it caused its customers.

BusinessDay reports that the Zenith Bank downtime affected Nigerians’ salary payments as it extended for days.

GTBank and Access send notices of downtime

These disruptions have heightened tensions, with some customers protesting outside some bank branches due to the prolonged delays in accessing their funds.

As Nigerians tried to overcome the disruptions, Access Bank and Guaranty Trust Bank announced planned IT upgrades, which might cause prolonged downtime.

GTBank said it would transition to a new and solid Finacle Core Banking Applications Systems suite.

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Due to ongoing routine maintenance, the bank said customers cannot access its digital channels for 11 hours.

“Please note that there will be no service on our digital channels for 11 hours, specifically from 10.00 pm on Sunday, October 13, till 9.00 am on Monday, October 14, 2024, as part of the transition process,” the bank said.

Reports say the bank is migrating its core banking platform to Finacle, an Infosys-built software.

Access Bank announced on Tuesday, October 8, 2024, that it will upgrade its systems from Saturday, October 12, to Sunday, October 13, 2024.

It stated that its mobile application, Internet Banking Platform, and ATMs will experience temporary service disruptions.

It directed its customers to use alternative platforms, such as SMS-based, for transactions.

However, reports say Access Bank has shelved the planned maintenance. Many more commercial banks are expected to join in upgrading and migrating their banking platforms.

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Access Bank moves planned system upgrade to new date, assures customers

Cashless transactions soar

Experts say these upgrades respond to the growing digital payments and the rising need for improved cybersecurity.

The Nigeria Interbank Settlement System (NIBBS) disclosed recently that cashless transactions increased by 84.37% to N572.63 trillion from January to July 2024.

NIBSS said fraud losses rose by 496.96% over the past five years due to increased electronic payments.

Nigerian banks are investing in new technology, including cybersecurity, to combat rising electronic fraud.

4 Nigerian banks named among Africa’s Top 20

Legit.ng earlier reported that Nigerian banks had been included in a new report published by the African Business on the list of the most prominent African banks in 2024.

Financial institutions in South Africa, Egypt, Morocco, and Algeria dominate the list.

South Africa’s banking giant Standard Bank Group is the top Bank in Africa for 2024, followed by the National Bank of Egypt, and Morocco’s Attijariwafa Bank comes third.