Guaranty Trust Bank (GTBank) is finalizing the transition to Finacle, a core banking software built by Infosys.
The switch marks a significant move for the Nigerian bank, which recently posted a record-breaking ₦905.57 billion in half-year profits. Previously relying on the Basis banking platform, a banking software also used by Providus and SunTrust, the decision to move to Finacle was finalized in September 2023.
Sources close to the bank revealed that some top management and tech team members visited India to negotiate a direct partnership with Infosys, bypassing any third-party vendor.
This comes after service disruptions under the previous system, a problem the bank seeks to avoid in the future.
One source noted, “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 transition to Finacle, which is already used by at least 10 banks in Nigeria, further solidifies Infosys’ growing presence in the Nigerian banking sector.
With its versatility and global leadership in core banking solutions, Finacle is now seen as the go-to platform for major banks.
In July 2024, GTBank CEO Segun Agbaje confirmed the bank’s decision to adopt Finacle. Speaking at a presentation for the bank’s ₦400 billion capital raise, Agbaje stressed the need for better technology.
“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.
The ongoing migration, which began in the fourth quarter of 2023, is expected to minimize disruptions to GTBank’s large customer base.
However, industry insiders acknowledge that the process could come with short-term challenges.
“Changing the core banking software is like doing a heart transplant,” one expert noted.
Sterling Bank, a tier-2 Nigerian bank, experienced app disruptions following its recent software migration, raising concerns about potential service delays for GTBank customers.
While GTBank has remained tight-lipped on the specifics, the move to Finacle reflects a broader trend in the Nigerian banking industry.
