For one of Nigeria’s tier one lenders, GTBank, this may not be the best of times as it continues to battle series of complaints from customers and groups over its half year, over one trillion Naira profit declaration, to public apprehension over alleged hacking of its website, among others .
Currently, the bank’s customers have been virtually shut out due to prolonged disruptions as the banks strive to upgrade its information technology infrastructure.
The project has brought about untold hardships to customers and other banking public as business transactions with the bank became a herculean tasks, as pensioners and other entrepreneurs have been experiencing hardship for inability to access their funds.
The effects of the ongoing exercise also shut out many Nigerians from banking operations and left several customers stranded and frustrated as some financial obligations are not been met.
While Nigerians are still healing from long weeks of banking disruptions,Guaranty Trust Bank recently announced planned updates of IT infrastructures.
From Friday (October 11), GTB was believed to have begun a “transition to a new and robust suite of Finacle Core Banking Application Systems.”
Consequently, on Sunday, customers were shut out from digital channels for 11 hours. “Please note that there will be no service on our digital channels for 11 hours, specifically from 10.00 pm on Sunday, October 13th till 9.00 am on Monday, October 14th, 2024, as part of the transition process,” the bank said.
According to reports, the bank is moving its core banking platform change to Finacle, a software built by Infosys from Basis.
However, as at the time of compiling this report some customers have yet to access their funds or being able to carry out transactions on some of its digital channels, contrary to what the bank told the public.
“Dear Valued Annuitant,
We are aware of the delay you are currently experiencing due to the system migration being carried out by GTbank. Rest assured that your payments were processed on the 11th of October 2024. We regret the inconvenience caused by this exercise and we implore you to exercise patience while GT Bank completes the migration process.
Thank you for your understanding,” a statement from one of the leading PFAs to its customers on Wednesday, October 16, 2024.
It has been similar nightmares for other customers, who are losing patience on daily basis.
Although, they acknowledged that the bank is one such institution that is investing heavily on its digital platform to enhance customer experience, the migration to the Finacle core banking system has caused customer disruptions and untold hardships.
“GTB that prides itself as a leading digital institution in the country should have handled this exercise much more better with minimal disruption as quietness in the midst of hardship does not speak well of the bank,” an agitated customer said.
Expectedly, the banking sector is gearing up for future growth, particularly with the new capital requirements which have prompted banks to invest in technology and improve their infrastructure.
Except for the current upgrade which has worsen public perception about its operations,the management of GTB has consistently claimed that current travails of the bank are been orchestrated by some individuals and groups noting that they are all false.
For instance, GTCO posted a record-breaking half-year revenue of N1.39tn between January to June 2024, up from N672.6bn recorded in the corresponding period of 2023.
The lender declared a surprise N1tn pre-tax profit and profit after tax of N905.5bn which raised doubts among stakeholders.
Although the bank was praised for its performance,some groups petitioned the National Assembly demanding for a forensic audit of the bank and as well as beam searchlight on some of its executive management staff and possibly suspending some to allow for a comprehensive audit of the financials and it’s operations generally
But the first-tier lender has denied the allegations that its banking subsidiary falsified its accounts to declare a historic N1tn profit before tax in the first half of 2024.
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The bank, in a statement denied wrongdoings and described the reports and allegations as “false news reports on GTCO’s business activities, financial results and its management team.”
GTCO said its executive management is not under financial or regulatory scrutiny as alleged.
The bank said, “It has become necessary to set the records straight and dispel attempts by certain groups to create a false narrative about the GTCO Brand and its Management.
“The false news articles which are being sponsored using the media, centre around baseless allegations against the Group’s business activities and its Executive its reputation.
“Being a responsible corporate citizen and a first-class institution, GTCO has taken swift and decisive legal actions against the various sources of these false reports and will continue to use the full extent of the rule of law available to safeguard its reputation.”
However,CBN, becoming wary of negative perception, ocassioned by allegations and their negative impact on the industry, decided to intervene.
In what market watchers regard as a show of solidarity with Guaranty Trust Holding Company (GTCO), CBN decided to ‘set the record straight by debunking false allegations being peddled against GTCO and its Executive Management by faceless and unqualified entities.
In a statement,CBN reassured the public that their deposits with Nigerian banks are safe and protected.
In the statement signed by Hakama Sidi Ali, acting director of corporate communications, she affirmed the bank’s commitment to the stability of the nation’s financial system.
“The Central Bank of Nigeria wishes to reassure the public of its unwavering dedication to ensuring the stability and reliability of the Nigerian financial system. We recognise the critical role that public confidence plays in banking operations, and we affirm that all deposits in Nigerian banks are secure, part of the statement said”
CBN emphasised its continuous efforts to uphold strict regulatory standards across the banking sector. These efforts, according to the bank include regular stress tests aimed at identifying potential vulnerabilities and ensuring the resilience of financial institutions.
The bank said it has also implemented Early Warning Systems that proactively detect and address emerging risks, allowing for timely interventions to mitigate any issues that may arise.
The apex regulator pf the industry also highlighted its international regulatory collaborations, stating that it has established Memoranda of Understanding (MoUs) with the regulatory authorities of countries where Nigerian banks have subsidiaries.
This cooperation ensures that Nigerian banks operate within safe and sound frameworks domestically and abroad, fully complying with global banking regulations.
CBN Promises to remain committed to fostering a secure banking environment,while assuring depositors of the continued safety of their funds.
It also promises to continue to monitor developments and adapt its strategies to safeguard the financial interests of all Nigerians and stakeholders in the financial system.
Banks’ technology upgrades over the past few weeks has caused untold hardships to customers, striking fear into those operating accounts in rural communities.
This is even as more banks have either announced or planning to commence the upgrade of their IT infrastructure over the next few weeks, development that would further plunge customers into unexpected hardships and accompanying frustrations.
Sterling Bank customers were the first to taste the pill of frustration after the bank’s migration of its systems from T24 to SEABaaS, a new custom-built core banking locally-developed application, caused disruptions that lasted for days.
Similarly, Zenith Bank, on October 1, commenced what it called routine maintenance of its IT infrastructure aimed at improving the quality of services.
Efforts to get reactions from.the bank’s media agency failed as no response to MBN’s Whatsapp message sent since Monday