GTBank is Finalizing Move to Finacle, New Core Banking Platform

Guaranty Trust Bank (GTBank), a leading financial institution in Nigeria and a subsidiary of Guaranty Trust Holding Company (GTCO), is finalizing its transition to Finacle, a core banking platform developed by Infosys. 

This move marks a significant shift in the bank’s operational strategy, as it aims to enhance its service delivery and integrate its various banking and non-banking subsidiaries onto a unified platform.

Transitioning from Basis to Finacle

GTBank’s decision to adopt Finacle was solidified in September 2023 following a strategic visit by the bank’s top management and technology team to India. 

This visit was crucial in establishing a direct partnership with Infosys, allowing GTBank to bypass third-party vendors, which often complicate implementation processes. 

The bank’s previous core banking software, Basis, had been plagued by issues that resulted in service disruptions, prompting the need for a more robust solution.

A source familiar with the situation indicated that the transition to Finacle is not merely a software upgrade but a comprehensive overhaul aimed at addressing these persistent challenges. 

“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,” stated Segun Agbaje, CEO of GTCO, during a presentation in July 2024 when the transition was first announced.

Advantages of Finacle

Finacle’s selection is driven by its extensive capabilities that cater to various banking needs, including retail, wealth management, and pensions. 

This comprehensive suite allows GTBank to streamline its operations across its subsidiaries, enhancing efficiency and customer service. 

“Rather than having different solutions that cater to different subsidiaries, the bank chose Finacle because it has modules for GT subsidiaries,” the source explained.

Moreover, Finacle’s cloud-native and open API-driven platform positions GTBank to become a more agile financial institution, ready to integrate with ecosystem partners and leverage new digital opportunities. 

This is particularly relevant as the banking sector increasingly shifts towards digital solutions, driven by customer preferences for secure and convenient services.

Broader Implications for Nigerian Banking

GTBank’s transition to Finacle is indicative of a broader trend within the Nigerian banking sector, where institutions are increasingly recognizing the necessity of modernizing their core banking systems. 

With Finacle already in use by several major Nigerian banks, including three of the largest commercial banks, its adoption underscores the growing influence of Infosys in the region.

The absence of a local banking software provider has made Finacle’s global leadership position in core banking software even more pronounced. 

Its extensive solution offerings and strong performance in core platform functionality have solidified its market dominance, making it a preferred choice for banks looking to modernize their operations.

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Migration Process and Customer Experience

The migration to Finacle began in the fourth quarter of 2023 and is designed to minimize disruptions for GTBank’s extensive retail customer base. 

However, transitioning core banking applications can often lead to temporary service interruptions, as seen recently with Sterling Bank, which faced app accessibility issues during its own migration. 

Industry insiders liken changing core banking software to a “heart transplant,” emphasizing the complexity and risks involved.

As GTBank moves forward with this significant transformation, the true measure of success will hinge on its impact on customer service and the seamlessness of the migration process. 

The bank’s commitment to delivering a superior banking experience is evident in its strategic choices and the investments it is making in technology.

GTBank’s shift to Finacle not only enhances its operational capabilities but also positions it to better meet the evolving demands of the digital banking landscape. 

As the bank prepares for this new chapter, stakeholders will be watching closely to see how these changes translate into improved services and customer satisfaction.

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