Banking services improving after core bank application system migration

THE recent migration by Deposit Money Banks (DMB) in Nigeria to a new core application system has affected service quality, but these disruptions appear to be winding down.

This transition to modernised core banking systems according to stakeholders, was designed to address operational inefficiencies and introduce improved services. While this migration initially disrupted service delivery, the long-term goal is to elevate banking performance, enhancing both transaction speed and accuracy.

A core banking application is the software banks rely on for essential processes such as managing customer accounts, processing transactions, and assessing risk.

Core Banking Application System Migration refers to the transition from an existing core system to a new one, which can involve several intricate steps: data migration, system integration, training and change management, testing and validation, cutover planning, and post-migration support. This process is integral for banks aiming to modernise technology, improve service, and enhance security, compliance, and operational efficiency.

According to Ben Awoks, a banking sector analyst, core banking system migration is challenging but necessary for banks seeking to remain competitive. The upgrades that accompany these migrations provide opportunities to streamline services and automate processes, ultimately benefiting both banks and customers. As banks migrate, they aim to offer customers more reliable and secure services, minimise downtime, and reduce human error in transactions.

One recent example of these changes is tier-2 Sterling Bank’s shift from the T24 system to SeaBaaS, a locally developed core banking application.

This transition caused temporary service disturbances but promises to improve the bank’s efficiency with more localized features tailored to meet its specific needs.

Similarly, Guaranty Trust Bank has announced plans to switch from the ICSFS Basis/Banks system to Infosys Finacle, an advanced solution from an Indian technology provider.

This new system is expected to support more dynamic service offerings and enhance customer experience through improved system responsiveness.

The anticipated benefits of these migrations include streamlined banking operations, shortened transaction processing times, and more accurate data handling. Improved integration of banking services also allows for better risk management and more precise data analytics, facilitating banks in offering personalized services to customers. Furthermore, by adopting newer systems, banks can bolster security protocols, significantly reducing vulnerability to cyber threats and ensuring customers’ sensitive information remains protected.

Despite initial setbacks, the core application system migration is viewed as a necessary step toward a future where banking services are more efficient, accessible, and customer-centric. By addressing and overcoming these transitional issues, Nigerian banks are positioning themselves for greater adaptability in an increasingly digital and globalised economy. This commitment to technological improvement indicates the sector’s focus on enhancing the banking experience for clients, thereby fostering trust and loyalty. As these new systems stabilise, customers should see the full benefits of this transformation, with smoother transactions, higher accuracy, and enhanced digital banking capabilities across all platforms.

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