“It’s been almost 2 months, and GTBank is still holding on to my $1k. If I am unable to transfer my money by the end of this week, I’ll have to take some drastic measures.”
This recent tweet from a frustrated GTBank customer encapsulates the agony many have faced due to the bank’s core system upgrades.
GTBank, like several other Nigerian banks, embarked on a journey to upgrade its core banking system to the new Finacle Suite, aiming to enhance agility, adaptability, and customer service.
However, the transition has been far from smooth, leading to nationwide disruptions and aggravation among customers.
The Frustration
Imagine waking up to discover that your salary, credited just yesterday, has vanished from your account. You attempt to complete a payment only to have your transaction declined, leaving you embarrassed and helpless.
Unfortunately, this scenario has played out for millions of Nigerians during the upgrade period. With over 70% of Nigerian adults relying on banks for daily transactions (CBN data), the technological upgrades have exposed deep flaws in the banking system.
Reports reveal transaction failure rates as high as 50% during this period, revealing the scale of the disruption and its impact on customers.
Explaining the Transition
Core banking migration upgrades are intended to improve efficiency, comply with regulations, and enhance security.
GTBank’s decision to transition to the Finacle Suite of Core Banking Applications aimed to bolster its service delivery. Yet, instead of delivering seamless banking, customers were met with system failures.
From delayed alerts to funds being temporarily stuck or lost, the process cost a lot for many. The ripple effects affected individuals, small businesses, and families alike:
- Small Business Owners: Many SMEs relying on GTBank reported failed payments, delivery delays, and loss of customers.
- Salary Earners: Stories of accounts suddenly reflecting zero balances disrupted monthly budgeting and triggered panic.
- Families: Stranded at fuel stations or supermarkets, they faced repeated transaction failures.
One GTBank customer tweeted: “@gtbank are you people trying to steal my money, how will money be showing in history transactions but is not available in my main balance”
Another wrote: “I transferred money to my account, and I don’t see it reflected. Is GTBank trying to steal my money?”
More complaints stated: “I nearly washed plates at a restaurant because GTBank wouldn’t let me access my funds!”
Before, During, and After the GTBank Upgrade
Before the Upgrade
GTBank customers enjoyed relatively seamless banking. Kunle, a small business owner, relied on the bank’s solid online services to manage transactions with minimal issues. “It was efficient, and customer service was responsive,” he recalls.
During the Upgrade
Customers like Kunle faced multiple failed transactions, long wait times, and restricted account access. “I was unable to pay my suppliers on time, and it caused a lot of anxiety,” he shared.
Transaction failure rates reportedly increased by 20%, further aggravating frustrations.
After the Upgrade
Even after the upgrade was supposedly completed, issues continued. Unprocessed transactions, missing funds, and negative balances became common complaints. A 50% surge in customer complaints post-upgrade came as the prolonged impact of these issues stayed on.
The Emotional and Financial Toll
The disruptions caused by the upgrade went beyond inconvenience. They impacted livelihoods, caused financial hooks, and eroded trust in the bank:
A particularly telling social media comment sums it up:
“From being Nigeria’s most tech-savvy bank to worse than microfinance institutions—GTBank has truly fallen from grace.”
The disruptions exposed systemic failures, including:
- Poor Communication: Customers were not adequately informed about potential downtimes.
- Technical Flaws: Reversed transactions and missing funds became rampant.
- Inefficient Support: Long wait times and unresolved complaints worsened customer experiences.
Fintechs Rising Amid the Chaos
While banks like GTBank face these issues, fintech companies such as OPay, Moniepoint and PalmPay are stepping in to fill the void.
Offering faster, more transparent, and customer-centric platforms, these digital challengers are attracting frustrated bank customers.
According to a Financial Inclusion Nigeria survey, 45% of affected users are considering switching to fintech alternatives if traditional banks do not address these challenges.
The disruptions stress the need for better preparation and customer-centric policies during such transitions.
Important takeaways include:
- Adequate Testing: Extensive pre-launch testing can prevent large-scale issues.
- Customer Communication: Clear, transparent updates during transitions are essential.
- Improved Support: Banks must prioritise effective and empathetic customer care.
- Regulatory Oversight: The CBN should enforce tough guidelines to ensure smoother transitions.
Rebuilding Trust
The goal of digital transformation in banking is undeniable as it will bring faster services, enhanced security, and improved efficiency.
However, without solid infrastructure and customer-first policies, these advancements risk alienating the very people they aim to serve.
In line with this, GTBank stated in its apology: “Your trust is the foundation on which we stand, and your patience during this transition has been extraordinary. We are committed to upholding the highest standards moving forward.”
Now, will GTBank and other Nigerian banks rise to the challenge of rebuilding trust, or leave their customers searching for alternatives?
With proper planning, transparent communication, and a focus on customer experience, future transitions can be smoother.
Nigerian banks must act quickly and decisively to prevent further loss of customers, ensuring they remain relevant as they try to meet up with technological changes in the financial sector.
