Guaranty Trust Bank (GTBank), the first Nigerian bank to post ₦905.57 billion in half-year profits, is finalising its core banking platform change to Finacle, a software built by Infosys. The bank previously used Basis, a banking software also used by Providus and SunTrust.
The decision to change to Finacle was finalised in September 2023 after some of the bank’s top management and tech team visited India to broker a direct partnership, side-stepping third-party vendors.
One person familiar with the matter said that change was necessary because GTBank’s previous banking software had problems, which led to occasional service disruptions.
GTBank picked Finacle because it plans to integrate its banking and non-banking subsidiaries on a unified platform, said one person with direct knowledge of the matter.
“Rather than having different solutions that cater to different subsidiaries, the bank chose Finacle because it has modules for GT subsidiaries like wealth management and pensions. It was a good deal,” the same person said.
GTCO’s move to Finacle, which is used by at least 10 banks, including three of Nigeria’s biggest commercial banks, highlights the growing influence of Infosys.
The absence of a local banking software provider and Finacle’s global leadership position in core banking software, attributed to its extensive solution offerings, versatility, and strong performance in core platform functionality, have solidified Finacle’s position in the market.
One person with knowledge of the matter said CEO Segun Agbaje made the final decision. In July 2024, Agbaje shared that the bank would change its core banking software to Finacle during a presentation to flag off its ₦400 billion capital raise.
“The technology needs to be better, the technology needs to be more robust. We have Finacle which is a good software that will land us where we need to go,” he said at the time.
The ongoing migration, which began in the fourth quarter of 2023, is designed to avoid disruptions to GTBank’s large retail customer base, one person with direct knowledge of the process claimed.
GTBank did not immediately respond to a request for comment.
A change in a bank’s core banking application can cause service disruptions in the short-term. On Saturday, TechCabal reported that customers of Sterling Bank, a tier-2 Nigerian bank, could not access the bank’s app because of a migration to a new custom-built core banking application.
“Changing the core banking software is like doing a heart transplant,” one industry insider said.
GTCO’s transition to Finacle reflects a broader trend among Nigerian banks, driven by evolving technology requirements and the growth of digital banking. The true measure of this trend’s success will be its impact on customer service and the seamlessness of the migration process.
