Grace Ashiru
Guaranty Trust Bank (GTBank), the first Nigerian bank to achieve ₦905.57 billion in half-year profits, is in the final stages of transitioning its core banking platform to Finacle, a software developed by Infosys. The bank previously operated on Basis, a system also used by Providus and SunTrust.
The decision to switch to Finacle was made in September 2023 after key members of GTBank’s management and tech team traveled to India to establish a direct partnership with Infosys, bypassing third-party vendors.
An insider revealed that the shift was prompted by recurring issues with the bank’s former software, which occasionally led to service interruptions.
GTBank selected Finacle to unify its banking and non-banking subsidiaries on a single platform, according to someone with direct knowledge of the situation.
“Instead of using separate systems for each subsidiary, the bank chose Finacle because it offers modules for areas like wealth management and pensions. It was a smart choice,” the source explained.
GTCO’s adoption of Finacle, already in use by at least 10 banks, including three of Nigeria’s largest commercial banks, underscores Infosys’ growing influence.
The lack of a strong local banking software provider and Finacle’s leadership in the global market, due to its comprehensive solutions, adaptability, and strong performance in core platform functionality, have further strengthened Finacle’s market dominance.
According to someone close to the situation, CEO Segun Agbaje made the final call. In July 2024, during a presentation to launch the bank’s ₦400 billion capital raise, Agbaje announced the switch to Finacle.
“We need better, more robust technology. Finacle is a great platform that will help us reach our goals,” he said at the time.
The ongoing migration, which started in late 2023, is designed to minimize any disruptions to GTBank’s large retail customer base, according to a source directly involved in the process.
GTBank did not immediately respond to requests for comment.
It’s worth noting that a change in core banking software can lead to temporary service disruptions. Recently, TechCabal reported that customers of Sterling Bank, a tier-2 Nigerian bank, experienced outages due to the bank’s migration to a new custom-built core banking system.
“Switching core banking software is like performing a heart transplant,” remarked one industry expert.
GTCO’s transition to Finacle is part of a larger trend among Nigerian banks adapting to new technological demands and the expansion of digital banking. The success of this shift will ultimately depend on its impact on customer service and how smoothly the migration is executed.
