Sterling Bank is promoting its new core banking software, SEABaaS, to financial institutions and fintech companies. The custom-built platform, which aims to reduce operating costs, allows Sterling to license its software to other banks and financial services providers.
According to sources, Sterling has already pitched SEABaaS to MoMo, MTN’s Mobile Money division, aligning with the bank’s strategy to license its technology. SEABaaS was designed to provide Sterling with the agility of a fintech, a move consistent with the bank’s focus on customer experience, asset financing, and its launch of Alternative Bank, a non-interest banking service.
This approach makes SEABaaS particularly appealing to fintechs that prioritize rapid development and adaptability.
In addition to fintechs, Sterling hopes to attract other banks as customers. Tier-1 banks are set to spend an estimated ₦80 billion on core banking software licenses in 2024, a significant investment that SEABaaS may help reduce. However, sources suggest other banks may hold off on committing until they see how SEABaaS performs during crucial end-of-year financial operations when transaction volumes peak and accounts must be reconciled.
SEABaas was jointly built byBazara Tech Inc., Peerless Technologies, and a third undisclosed company. Sterling aimed to lower costs by avoiding dollar-priced options like Finacle and Temenos. This pricing strategy may attract cost-conscious tier-2 banks eager to localize their expenses.
For now, SEABaaS stands as a potential alternative for banks and fintechs seeking a cost-effective, locally-built core banking solution, but its success may hinge on proving reliability in high-stakes periods.
