In a conversation with Brad Levy, chief executive of ThetaRay, a company focused on the “wiring” of trust through AI-powered monitoring that helps banks and fintechs scale safely while detecting and reporting financial crime, we examined what this speed means for risk, regulation, and trust in the financial system. 

Levy argues that old ways of tracking money flows no longer hold up.

Nigeria’s banking and fintech sector has expanded, almost faster than the systems built to regulate it. Payments now move in seconds, and fraud patterns move just as quickly. 

Regulators are responding with stronger policies and expectations.

For Levy, the transition is apparent. Systems built for manual checks cannot keep pace with today’s transaction volumes or the complexity of digital crime networks. He describes a system under stress, where scale has exposed the limits of human-led monitoring.

Across banks and fintechs, the gap in readiness varies. Some institutions are already adopting artificial intelligence and real-time oversight. Others still rely on older compliance models that struggle to connect customer data with live transaction behaviour.

The Central Bank of Nigeria’s recent direction on automated anti-money laundering (AML) systems sets a firm line, forcing the industry to move from gradual improvement to immediate action. Institutions now have to rethink how they see compliance, not as a back-office task, but as core infrastructure.

In this interview, Levy, who has spent his career building the plumbing of the global financial markets, first with nearly two decades at Goldman Sachs, then leading Symphony and MarkitSERV, explains what has changed, what still slips through the cracks, and why Nigeria’s approach may affect how digital finance is policed far beyond its borders.

TE: The Central Bank’s move makes automated AML systems effectively non-negotiable. From your vantage point, what changed in the risk sector to push regulators from guidance to outright mandates? 

Brad Levy (BL): The math simply stopped working for manual oversight. Nigeria has one of the most vibrant digital payment ecosystems in the world. You can’t monitor millions of instant transactions using spreadsheets and human eyes. 

The CBN’s March 2026 mandate recognises that guidance doesn’t stop automated, bot-driven crime. By mandating these systems, Nigeria is making a strategic move to protect the integrity of the Naira and ensure the country stays effectively connected to the global financial map.

TE: You’ve worked closely with financial institutions in Nigeria, where do most banks and fintechs actually stand today in terms of AML capability, and how wide is the gap? 

BL: The divide is significant, though it’s closing fast. We see forward-leaning institutions like Sterling Bank already moving toward a future-proof posture by putting AI at the centre of their monitoring. On the other hand, plenty of firms are still stuck in a “box-ticking” mindset.

The gap is most obvious when you look at the CBN’s anti-money laundering automation mandate. Most legacy systems can’t provide a unified view of the customer or link KYC/KYB data to transaction behaviour. 

The 18-month window for banks is tight, but the real pressure is the three-month requirement to submit a roadmap. If financial institutions haven’t started their gap analysis yet, they’re already behind.

TE: There’s a lot of talk about AI in compliance, but in practical terms, what kinds of financial crime patterns are still slipping through traditional monitoring systems that AI is better at catching? 

BL: Traditional systems are built on rules. They look for what we already know, like whether a transfer is over a certain dollar amount. Modern criminals have moved past that. They use smurfing or complex networks of mules to make illicit flows look like normal, low-value activity. AI catches the anomalies. 

It identifies patterns that look wrong even if we haven’t seen that specific tactic before. For a bank, it’s the difference between chasing 5,000 false alarms and actually finding the criminal network hidden in the noise.

TE: For Nigerian institutions, this goes beyond a tech upgrade to an operational shift. What are the biggest implementation challenges you’re seeing on the ground, especially around data quality, cost, and internal expertise? 

BL: The biggest hurdle is fragmented data. AI is only as good as what you feed it, and many institutions have their KYC data sitting in a different silo than their transaction logs. There is also a lingering perception that compliance is just a “tax” on doing business. 

I argue it’s a strategic asset. When you use AI to reduce false positives by 90%, you aren’t just satisfying the CBN; you’re making the entire bank more efficient. Your investigators can finally focus on real risks instead of low-value busywork.

TE: Do you see this directive as a Nigeria-specific response or part of a regulatory change across Africa? And how might it reshape expectations for cross-border transactions over the next few years? 

BL: Nigeria is the blueprint for the continent. We’re seeing similar shifts everywhere, from the EU’s new AML Authority to tightening rules in the US. This is Nigeria’s “mobile phone” moment. Just as the continent skipped landlines to go straight to mobile, Nigeria is leapfrogging the failing, manual era of compliance. 

By hard-coding AI and transparency into the banking system, Nigeria is making itself a much safer destination for global capital. This mandate turns compliance into a bridge for international trade rather than a barrier.

The post Brad Levy Explains How CBN’s AML Policy Is Reinforcing Trust in Digital Finance appeared first on Tech | Business | Economy.

Now, both Sterling Bank and Wema Bank want to be the face of digital transformation, but which one of them has actually earned that reputation?

The Digital Banking Reality Check

Nigeria’s banking sector has changed so much. Over 70% of banked Nigerians now use digital platforms weekly, and digital transaction volumes have surged by more than 240% in the past five years. What used to be a nice-to-have is now a necessity.

However, building a mobile app doesn’t make a bank digital, the actual transformation demands more, including culture change, customer trust, and consistent user experience. This is where Wema and Sterling’s approaches begin to diverge.

Wema Bank: The Digital Bank Before It Was Cool

When Wema launched ALAT in 2017, most banks were still struggling to understand fintech. That move gave it an eight-year head start in digital innovation. Today, Wema is living the digital transformation.

As of 2025, about three-quarters of Wema’s customers actively use its digital channels, and the results show. The bank’s gross earnings jumped by roughly 70% in the first half of the year, and profit before tax surpassed ₦100 billion, an increase from the previous year.

ALAT is a fully formed brand identity. From ALAT for Business to ALAT XPlore for teenagers, Wema has built a digital ecosystem that is modern and up-to-date. It’s also personable, playful enough to engage younger Nigerians, but structured enough to manage serious banking.

That’s what makes Wema’s transformation believable. It has turned its early digital test into a long-term advantage, earning awards, credibility, and genuine customer affection. Though the market is crowded with fintechs, Wema still manages to stay original.

Sterling Bank: From Brick Walls to “The One Customer Bank”

Sterling’s rebrand took a more philosophical turn. Instead of leading with an app, it led with an idea: “The One Customer Bank.” The goal was to treat every customer as if they’re the only one. It’s emotional, it’s human, and with our country filled with many people feeling neglected by their banks, it aligned.

Underneath that slogan, though, Sterling has been quietly re-engineering its systems. The OneBank app now offers a smoother experience, better transaction tracking, and new features like budgeting tools, card delivery requests, and foreign exchange services. 

The bank even scrapped certain switch charges in 2025, making digital banking cheaper for its users, and customers genuinely appreciated.

Around 60% of Sterling’s transactions now come through its digital channels. It’s not quite where Wema is yet, but the growth is noteworthy. The bank has also built goodwill through its human-centred culture, the HEART of Sterling framework (focused on Health, Education, Agriculture, Renewable energy, and Transportation) is part of how it connects purpose with profit.

Sterling’s brand has matured, and while its digital tools may not yet match ALAT’s variety, its sense of empathy and simplicity keeps it relatable. It feels like a traditional bank trying earnestly to learn new tricks, and that sincerity counts.

Head to Head: Two Routes to the Same Goal

Wema Bank and Sterling Bank may be in the same race, but they’re running on different tracks. 

Wema’s rebrand is confident, and data-driven. It leads with product innovation and doesn’t shy away from proving its claims. Every upgrade, campaign, or award reiterates the “Digital Bank” focus.

Sterling, on the other hand, is playing the long game. Its rebrand is built around trust, not technology. While Wema sells speed and modernity, Sterling sells care and connection. The bank’s communications are calm, thoughtful, and rooted in its service philosophy. It’s more about reassurance.

The difference is that Wema’s transformation feels complete, it has successfully merged technology, branding, and performance into a single identity. Sterling’s transformation, though optimistic, still feels transitional. It’s moving in the right direction but hasn’t fully arrived.

Finally…

If the question is which bank has truly rebranded for the digital age, Wema Bank takes the lead. It’s modern in language and operations too. The ALAT brand has built its own loyal following, and its numbers back this up.

Sterling Bank, however, deserves credit for the authenticity of its journey. It’s not trying to copy the fintech playbook. Instead, it’s finding its own path by blending human warmth with digital progress. Its rebrand seems more grounded than flamboyant, more about people than code, and in a market driven by perception, that kind of authenticity is important.

Digital banking in Nigeria has become more about who can make technology feel human.

Wema Bank has turned its early bet on ALAT into a competitive edge, one that aligns perfectly with today’s digital reality. Sterling Bank, meanwhile, is proving that transformation doesn’t always have to be loud to be real. It’s steady, evolving, and genuinely trying to build trust in a space where trust is rare.

Both banks are changing what legacy brands can look like in the digital age. But in 2025, Wema Bank has the louder success story, and Sterling Bank has the quieter, more human one. In the end, the best rebrand may not be about who looks the most modern, but who seems the most believable.

The post Sterling Bank vs. Wema Bank: Which Has Truly Rebranded for the Digital Age? appeared first on Tech | Business | Economy.

According to the bank, the refreshed identity reflects its transformation and bold ambitions, signalling its drive to build an agile, inclusive, future-ready financial institution focused on meeting customers’ needs.

The new colour and logo will become effective from August 19, 2025. The new colours are deep blue, yellow, and grey, representing trust, stability, professionalism, energy, optimism, visibility, balance, and sophistication.

The bank emphasized that this strategic transformation marks a significant milestone in its drive to better serve its customers, accelerate digital innovation, and expand its footprint in the financial services sector, reflecting its renewed commitment to empowering individuals, businesses, and communities.

The unveiling of the new identity follows a solid first half of the year performance, with the bank recording a profit after tax of N14.45 billion, a significant improvement from the N7.62 billion delivered in the same period of 2024. Fee and commission income surged to  N2.44 billion, from N0.90 billion year-on-year, while retained earnings rose to N15.7 billion, reflecting the bank’s capacity to create value for shareholders.

As the new colour and logo is being applied across the bank’s communication materials, digital channels, and customer touchpoints, the bank’s corporate structure and regulatory status remain the same.

The post Jaiz Bank Unveils New Identity, Embraces Inclusive, Future-Ready Focus appeared first on Tech | Business | Economy.

A member of staff at Sterling Bank took it upon herself to spread the “gospel” of free transfers, as though divine intervention had finally struck the banking sector.

“BREAKING NEWS!!! Sterling Bank has CANCELLED TRANSFER FEES!!!

The message, a cross between a Nollywood script and a WhatsApp chain message, was peppered with urgent calls to action—open an account now, tag your bank, forward to 20 people before they “delete” it. Even the disclaimer was dramatic: “They will say it’s ‘April Fool’ but CHECK YOUR APP!!”

And just like that, Sterling Bank placed itself as a saviour of the Nigerian banking system—offering what no other bank has ever: free transfers, zero interbank fees, and even free ATM card issuance.

But let’s take a step back. Is this really an act of generosity, or is Sterling Bank simply playing catch-up after months of losing customers?

From Migration Issues to Damage Control

The timing of this campaign is hardly coincidental. It comes after a challenging year for Sterling Bank, with a massive migration to a new core banking system, SeaBaaS—Africa’s first indigenous core banking platform, developed by Peerless.

In August 2024, Sterling Bank informed customers of its plan to transition, and by September, the migration was complete. But instead of ushering in seamless banking, the process left customers stranded. For two weeks, the system disruptions meant no transactions, no transfers, and in some cases, no access to funds.

Businesses suffered. Individuals panicked. Some customers, understandably, packed their bags and took their money elsewhere.

Sterling Bank, which previously had around three million customers, lost a number during this migration. But the reputational damage was obvious. If trust in a bank is its currency, Sterling’s reserves took a serious hit.

By the time Sterling Bank resolved the issue in late September, the damage was already done. Many customers had closed their accounts and moved to competitors.

So, what do you do when you’ve lost a chunk of your customer base? You offer them freebies and hope they return.

Free Transfers?

In response, Sterling Bank’s No Transfer Fee campaign seems like a brilliant recovery strategy. Banking fees—especially hidden charges—are one of Nigerians’ biggest financial headaches. 

In Nigeria, economic hardship is squeezing every naira, and a bank promising zero charges could attract frustrated customers from other institutions.

To kick off the initiative, the bank has stated that the free transfer policy officially began on April 1, 2025. Customers who were charged between 12:00 am and 8:00 am on that day will receive a full refund.

Obinna Ukachukwu, Sterling Bank’s growth executive in charge of Consumer and Business Banking, stressed that the initiative is aimed at providing fair and inclusive banking.

“We believe access to your own money shouldn’t come with a penalty. This is more than a financial decision, it’s a values-based one. It reflects our commitment to making banking fair, inclusive, and truly customer focused,” Ukachukwu stated.

But is Sterling truly offering something for nothing?

History shows otherwise. Nigerian banks have a habit of introducing “free” services only to quietly reinstate charges later. In December 2012, several banks promised zero ATM withdrawal fees—only to reverse the decision within months. Even fintechs like Opay and PalmPay initially offered free transfers, but later introduced fees.

So the real question is How long will Sterling keep this up?

Here are three possible scenarios:

1. Short-Term Gain, Long-Term Reversal:
   • Sterling gets a wave of new account openings.
   • In a few months, the bank introduces “maintenance fees” or finds another way to recover lost revenue.
2. Ripple Effect Across the Industry:
   • If customers start leaving other banks for Sterling, competitors might be forced to follow suit.
   • This could lead to a brief period of lower banking fees across the industry—before banks find a way to sneak charges back in.
3. Genuine Shift in Strategy:
   • If Sterling truly commits to this model, it could disrupt traditional banking.
   • Other banks may be pressured to find new revenue streams instead of relying on transfer fees.

But that’s a big if.

How Are Customers Reacting?

The response so far has been mixed. While some Nigerians are commending Sterling’s move, others are in doubt:

“Wow! Sterling Bank is starting a revolution. This is nice.”

Another posted: 

“Well because this is coming today 1st April I’m just going to watch out for your customer’s comments on transfer charges and see how true this is before I join your bank else I remain where I dey.”

Even financial experts are questioning the endgame. One who preferred to remain anonymous, told us:

“This is a temporary solution to a long-term trust problem. If Sterling Bank cannot guarantee stable digital banking services, no amount of free transfers will keep customers loyal.”

Can Sterling Bank Rebuild Trust?

Sterling’s migration to SeaBaaS aimed to set the bank apart in innovation. Instead, it highlighted the risks of poor execution. Now, with this No Transfer Fee campaign, the bank is trying to amend the situation.

But free transfers alone won’t fix a broken reputation.

What Sterling really needs to do is:

1. Prove System Stability: Customers need assurance that another major system failure won’t happen.
2. Be Transparent: If there’s a time limit on this free transfer offer, they should say so upfront.
3. Rebuild Customer Confidence: Offering compensation to those affected could go a long way.

For now, Nigerians will enjoy the honeymoon phase—free transfers, zero fees, and Sterling’s new-found customer-friendly image. Hopefully, this will last.

That’s the real test.

The bank’s transition to SeaBaaS is meant to bring faster transactions, improved security, and better financial products. While these improvements are rolling out in phases, customers will need more than free transfers to regain confidence.

For now, Sterling Bank is fighting to stay relevant. Whether Nigerians will buy into the redemption story is another matter entirely.

The post Exclusive: Sterling Bank Battles to Retain Customers with ‘Free Transfer’ Campaign appeared first on Tech | Business | Economy.

During a visit to an ATM stand in Lagos, we spoke with a customer who shared that eight out of ten ATMs are either out of service or have no cash. “This Bank never has money in their ATM,” she said.

“Even when they do, it’s usually only until noon, and then they stop working. The only option is to go into the bank and make transfers yourself.”

Techeconomy engaged with an insider at one of Nigeria’s top-tier banks to understand why this problem seems unending. We wanted to know: Why aren’t banks keeping their ATMs filled? Do they deserve the sanctions imposed by CBN?

In response, the insider said, “That’s a broad conclusion for a bank that has over 800 branches. I’m not sure how many branches the customer has visited before arriving at that. However, I can tell you several challenges faced by banks in Nigeria and not just ours, but it is heavier on us because of our high number of branches.”

He continued, “Yes, there is a CBN sanction on banks when your ATMs are not dispensing. The regulatory body expects the bank to load their machines when there is an obvious epidemic in the sector called “POS.”

The PoS Epidemic: A Growing Concern

The PoS (Point of Sale) phenomenon has become a big issue in the Nigerian banking sector, contributing heavily to cash shortages in ATMs. 

With the high reliance on PoS agents across the country, many Nigerians are using them as alternatives to traditional banking transactions. However, PoS agents, who often carry large sums of cash for transactions, are now becoming primary players in the liquidity problems facing banks.

“PoS agents are constantly on standby at ATMs and business locations, to collect and buy cash from customers or businesses,” the insider explained. 

“While these agents may seem to help by making things easier and providing access to cash withdrawal or deposit, in the larger scheme, they’re creating problems. The fact is, businesses are becoming more reliant on PoS agents rather than making traditional cash deposits in banks.

“They are making things difficult for both the masses and the Banks.”

This has caused a drastic reduction in the amount of cash flowing into the banking system, leading to shortages at ATMs. It’s reported that in some urban areas, PoS agents have begun hoarding cash to capitalize on the high demand, further straining ATM services.

While the CBN sanctions are meant to encourage better service across ATMs, it’s still not clear how effective they have been. The insider acknowledged the CBN’s role in attempting to regulate ATM cash availability but also noted the complications faced by banks in meeting these demands, especially when dealing with the PoS issue.

“Yes, the CBN expects us to have cash readily available at ATMs, but what is the bank to do when there is a continuous shortage of cash in circulation? How many companies are still making cash deposits? Most businesses rely on PoS agents now,” the insider said.

According to the Nigeria Inter-Bank Settlement System (NIBSS), the number of PoS terminals in Nigeria surged by 129% over the past three years, with an increasing percentage of Nigerians using PoS services daily. This growth in PoS usage has greatly impacted the ability of banks to maintain sufficient cash flow in their ATMs.

This ATM cash shortage crisis is not an isolated banking issue; it is intertwined with Nigeria’s economic challenges. The scarcity of cash is just one symptom of larger financial challenges the country is facing, including inflation and the ongoing transition to a cashless economy.

The government’s vision of digital financial inclusion, paired with inflation and currency devaluation, has placed high pressure on the banking system. As cashless transactions become more prevalent, many Nigerians are still challenged with access to physical currency for daily needs. These economic factors have compounded the challenges banks face in providing adequate ATM services.

Addressing the Root Cause: PoS Regulation

The key to solving the ATM cash issue lies in addressing the root cause—the unchecked proliferation of PoS agents. While PoS services are undoubtedly improving access to cash for many Nigerians, the increasing demand and the role PoS agents play in withdrawing cash from the banking system are draining the liquidity needed to sustain ATM networks.

The insider stressed, “Before banks can begin to solve the ATM shortage, there needs to be a conversation around regulating the PoS sector. We need to ensure that businesses are encouraged to deposit cash back into the system, rather than hoarding it.”

“The menace of POS first needs to be tackled.”

Meanwhile, the apex bank had recently stated that “Ensuring seamless cash flow is paramount to maintaining public trust and economic stability. The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines.”

The statement further read, “The CBN’s investigations and monitoring will continue to scrutinise cash hoarding and rationing, both at bank branches and by Point-of-Sale (POS) operators. The Central Bank is working with security agencies to crack down on illegal cash sales and operational violations, including enforcing POS operators’ daily cumulative withdrawal limit of N1.2 million.

“The new policy on cash-based transactions (withdrawals) in banks, aims at reducing (NOT ELIMINATING) the amount of physical cash (coins and notes) circulating in the economy, and encouraging more electronic-based transactions (payments for goods, services, transfers, etc.)”

The post Exclusive: CBN Battles to Resolve ‘Cashless ATMs’ as PoS ‘Epidemic’ Hits the Financial Sector appeared first on Tech | Business | Economy.

Starting March 1, 2025, Nigerians won’t need to worry about saving money, because their banks will be doing the saving for them—one ATM withdrawal at a time—just that you can never access the funds. Sounds like a well-planned heist, right? Except this one is perfectly legal.

Nigerians will now be paying through their noses just to access their own funds, thanks to the Central Bank of Nigeria’s (CBN) latest policy blessing the banks with a multi-trillion-naira windfall in ATM charges. 

Let’s break it down.

The Billion-Naira Cash Grab Disguised as Policy

Under the new policy:

• On-Us Transactions: Withdrawals at your bank’s ATM? Free. (Phew.)
• Not-On-Us Transactions: Withdraw at another bank’s ATM? That’ll be ₦100 per ₦20,000.
• Off-Site ATMs: Withdraw from an ATM that isn’t inside a bank? That’s ₦100 per ₦20,000 withdrawal, plus a surcharge of up to ₦500.
• International Withdrawals: Fees are “based on cost recovery,” meaning whatever the international acquirer charges will be passed directly to you.

At first glance, ₦100 per withdrawal doesn’t seem like much—until you do the math.

How Banks Will Make ₦2.2 Trillion from Your Money

…and that’s just based on one withdrawal per active account a month

With 311.6 million active bank accounts in Nigeria, even a single monthly withdrawal per account could generate huge profits:

• Domestic Withdrawals: ₦100 x 311.6 million = ₦31.16 billion per month.
• Off-Site ATM Withdrawals: ₦600 per withdrawal x 311.6 million = ₦186.96 billion per month.

That’s over ₦2.2 trillion per year—not from lending, not from business investments, but simply from letting people access their own money.

And all this in an economy where inflation is running at over 30%, unemployment is skyrocketing, and the new ₦70,000 minimum wage barely covers rent and food.

If a worker withdraws ₦80,000 in a month from off-site ATMs, they could pay up to ₦2,000 in fees—nearly 3% of their salary. Meanwhile, banks continue to report record profits.

From Banking to Legalised Extortion

Globally, banks earn primarily from lending. But in Nigeria, financial institutions have found a more innovative model: charging customers for every financial move they make.

• In the first quarter of 2024, top-tier banks raked in over ₦125 billion from electronic banking charges.
• With just 16,714 ATMs for over 200 million Nigerians, long queues and machine downtime are already the norm. This policy will push more people towards expensive PoS withdrawals, where agents also charge their own fees.
• By contrast, in countries like Kenya, digital banking is encouraged through zero ATM withdrawal fees for many account types. Even in South Africa, withdrawal charges are significantly lower. So why are Nigerian banks making their customers pay so much for basic services?

The CBN claims these charges will prevent customers from breaking withdrawals into smaller amounts. But let’s be honest: This is just another revenue stream for banks, cleverly wrapped in the language of “financial policy.”

The Central Bank of Nigeria, rather than acting as a regulator in the interest of financial inclusion, seems to be tilting towards policies that favour banks at the expense of customers. 

The question is: why is there no cap on ATM charges? Why isn’t there a push for alternative, low-cost cash withdrawal solutions?

I mean! There is no upper limit or maximum limit on the charges for ATM transactions. The fees can vary and may increase based on different factors, such as the amount of money withdrawn or the location of the ATM. Essentially, there is no fixed maximum charge that customers can be guaranteed not to exceed. 

This means you might encounter different fees depending on which bank’s ATM you use or whether the ATM is located on-site (at a bank branch) or off-site (at a different location, like a shopping mall). 

Moving Towards Digital, or Just Financial Exclusion?

Supporters say that higher ATM fees will encourage electronic transactions—but here’s the problem:

• Digital Payments Are Not Universal: Many Nigerians, especially in rural areas, still rely on cash for daily transactions.
• Mobile Network Issues: Failed transfers and delayed alerts are common, making cash a safer option for many.
• Unbanked Population: With 26% of Nigerians still unbanked, these charges could further discourage financial inclusion.

So, what’s the alternative? Fintechs like Opay, PalmPay, and Kuda may benefit as Nigerians search for less exploitative banking options. But until digital banking becomes truly reliable, these ATM charges are nothing short of a tax on poverty.

So, Who Will Save Nigerians from Their Own Banks?

As it stands, the biggest threat to your finances isn’t inflation, unemployment, or even government policy—it’s your own bank.

At what point does banking stop being a service and start looking like state-approved extortion? Nigerians are being charged simply for existing within the banking system.

If the CBN does not cap these fees or introduce customer-friendly alternatives, we may soon see a mass exodus from traditional banking. The very institutions meant to safeguard our money seem more interested in finding new ways to take it—so as to “ease costs of operations.”

Until then, be prepared: In Nigeria, it now costs money to withdraw your own money.

The post ANALYSIS: Banks to Rake in N2.2 Trillion Annually from ATM New Charges appeared first on Tech | Business | Economy.

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:

1. Adequate Testing: Extensive pre-launch testing can prevent large-scale issues.
2. Customer Communication: Clear, transparent updates during transitions are essential.
3. Improved Support: Banks must prioritise effective and empathetic customer care.
4. 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.

The post From Innovation to Frustration: GTBank’s Core System Upgrade Failing the Customers? appeared first on Tech | Business | Economy.

The FCCPC stated that such disruptions have far-reaching consequences on individuals, businesses, and the economy at large.

In accordance with the Federal Competition and Consumer Protection Act (FCCPA) 2018, the FCCPC outlined that bank customers are entitled to quality service, and any interruptions in accessing essential financial services can be deemed as a failure to meet this standard.

“A key provision is the right to quality service, which mandates that all service providers, including banks, maintain acceptable levels of functionality and reliability,” the FCCPC stated.

The Commission noted that, in today’s increasingly cashless Nigerian economy, online banking has moved from a convenience to a necessity. Technical issues that prevent customers from engaging in transactions or accessing their funds could be considered a violation of the right to reasonable access to services. 

This right, as stipulated in the FCCPA, is essential in an environment where access to funds is critical.

The FCCPC also stressed the importance of transparency from Nigerian banks during such disruptions. According to the Act, service providers are required to communicate openly and accurately with customers, particularly when service outages occur. 

The Commission noted, “During service disruption, it is essential that banks keep their customers fully informed about the causes, scope, and anticipated duration of any service issues.”

However, the FCCPC complained that many customers have been left without information, increasing frustration and leading to a feeling of neglect.

Customers facing difficulties due to these disruptions have the right to seek redress, as per FCCPA provisions, if services fall below acceptable standards. The Commission confirmed that it is monitoring the situation to ensure consumers’ rights are respected.

“The FCCPC is currently reviewing the situation to determine if consumers’ rights to redress are being upheld and if more action is needed to enforce accountability,” the agency affirmed.

The FCCPC revealed that it is collaborating with regulatory authorities, financial institutions, and other stakeholders to address these service issues and safeguard consumers’ interests. 

Banks have been urged to act promptly to restore stable services, prioritise customer support, and improve their communication to manage expectations responsibly and transparently. “The Commission assures affected bank customers that their concerns are being taken seriously,” the FCCPC reiterated, encouraging financial institutions to rectify service disruptions quickly.

Customers impacted by these issues can contact the FCCPC through its official channels to report complaints. The agency reiterated its focus on ensuring compliance with the FCCPA 2018, safeguarding the rights of Nigerian consumers, and holding banks accountable for service standards.

The post FCCPC Warns Nigerian Banks: Address Service Disruptions or Face Accountability appeared first on Tech | Business | Economy.

The new deposits, according to a report, push up bank deposits to N136 trillion.

This was contained in the audited reports and regulatory filings by commercial banks and their holding companies.

According to the audited report, the total deposits in the banking sector rose by 63 per cent from about N70.5 trillion in 2022 to about N115 trillion in 2023.

The data, provided to the NGX, as reported by Daily Trust, showed impressive growth across all cadres and tiers of banks, with the middle tier and newly established banks competing well with the first-generation and largest banks.

Experts say the implication of the report was that the banks have recorded sustained growth in deposits despite the challenging macroeconomic environment.

From tier 1 banks to tier tier 2, among others, all banks have recorded steady growth as the report indicated.

For instance, Zenith Bank’s total deposit, which rose by 69 per cent from N8.98 trillion in 2022 to N15.17 trillion in 2023, closed March 2024 at N16.78 trillion.

Guaranty Trust Holding Company (GTCO) has doubled its deposits since 2022, rising from N4.6 trillion in 2022 to N7.55 trillion and N9.2 trillion in 2023 and the first quarter of 2024 respectively.

United Bank for Africa (UBA)’s deposits grew from N10.86 trillion in 2022 to N14.9 trillion in 2023 and closed at N18.4 trillion in March 2024.

FCMB Group has grown deposits steadily from N2.07 trillion in 2022 to N3.4 trillion in 2023 and N3.7 trillion in the first quarter 2024.

Premium Trust Bank, which commenced operations in April 2022 as a national bank, grew its deposit base by 382 per cent from N55 billion in December 2022 to N265 billion in December 2023. It closed the first quarter 2024 at N309 billion.

Also, Fidelity Bank’s deposits rose steadily from N2.58 trillion in 2022 to N4.02 trillion in 2023 and closed in first quarter 2024 at N4.71 trillion. Access Holdings saw a quantum jump from N11.3 trillion in 2022 to N19.8 trillion in 2023 and N24.7 trillion in March 2024.

Sterling Holding Financial Company crossed the N2 trillion mark to N2.15 trillion in first quarter 2024 from N1.4 trillion and N1.8 trillion in 2022 and 2023 respectively.

The rise in deposits has made it seamless for banks to increase lending to the private sector, especially small and medium enterprises (SMEs), and support the growth of the economy.

A recent report by the Central Bank of Nigeria (CBN) indicated that banks’ credits to the private sector grew by N30 trillion in one year.

Similarly, banks have recorded significant growth in profitability in 2023, with average profit growth in the sector in double digits. The growth in profitability, according to experts, was largely due to business expansions, but in several instances, boosted by gains from foreign exchange (forex) revaluation gains.

According to the Daily Trust report, a financial analyst, Ayokunle Olubunmi of Augusto, attributed the rise in deposits to revaluation carried out by the banks to increase their foreign exchange earnings.

He also said the rising interest rates also contributed to the rise, while projecting a further increase before the year runs out.

“Remember some of these deposits are actually in USD and given the changes in the operation of the foreign exchange market in which the CBN wants banks to be sourcing the FX directly, you would see that a lot of banks have been strategically positioning themselves to attract foreign currency deposits and with the devaluation that you have noticed that by the time you convert those foreign currencies to naira, the value will increase,” Olubunmi stated.

The post Nigerians Deposited N21trn in Banks in 3 Months appeared first on Tech | Business | Economy.