Guaranty Trust Bank (GTBank), the first Nigerian bank to report ₦905.57 billion in half-year profits, is nearing the completion of its transition to a new core banking platform, Finacle, developed by Infosys. Previously, the bank had been using Basis, a software also employed by Providus Bank and SunTrust Bank.
The decision to switch to Finacle was finalized in September 2023, following a trip by GTBank’s top management and technology team to India. This visit helped secure a direct partnership with Infosys, avoiding the need for third-party vendors. A source close to the development mentioned that the switch became essential due to issues with GTBank’s previous software, which had caused occasional service disruptions.
GTBank chose Finacle for its ability to unify its banking and non-banking subsidiaries on a single platform, according to another insider. “Rather than using separate solutions for different subsidiaries, Finacle offered modules for GTBank’s wealth management and pension services, making it a great fit,” the source explained.
Finacle, which is already in use by at least 10 other banks, including three of Nigeria’s biggest commercial banks, continues to gain influence across the country’s banking sector. The absence of a local software provider and Finacle’s leading position in core banking technology—due to its wide-ranging solutions, flexibility, and strong performance—have cemented its status as the preferred platform for many banks.
CEO Segun Agbaje played a key role in the decision to switch to Finacle. In July 2024, during a presentation that marked the start of the bank’s ₦400 billion capital raise, Agbaje stated that the bank would upgrade its core banking system. “The technology needs to be better and more robust. Finacle is the software that will help us get where we need to go,” he remarked.
The migration process, which started in the fourth quarter of 2023, aims to minimize disruptions for GTBank’s vast retail customer base, said a person familiar with the process. However, GTBank has not yet responded to requests for comment.
It’s important to note that switching a bank’s core banking platform can cause short-term service issues. For example, in a recent report by TechCabal, Sterling Bank customers were unable to access the bank’s app during its migration to a custom-built core banking platform. “Changing core banking software is like performing a heart transplant,” said one industry expert.
GTCO’s adoption of Finacle is part of a larger trend among Nigerian banks, driven by the increasing demand for more advanced technology and the growth of digital banking. The true test of this migration will lie in how it affects customer service and how smoothly the process is carried out.
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