For some weeks, bank customers have been struggling to access their funds due to the network disruptions that accompanied the ongoing core banking applications. Many transactions were botched and investment firms saw their operations stalled, JUSTICE OKAMGBA writes
In an email, Optimus by Afrinvest warned customers that they might experience temporary transaction delays due to Nigeria Inter-Bank Settlement System and some banks’ downtime.
The mail partly read, “We would like to inform you about some temporary delays in processing withdrawals. This is due to an issue with NIBSS (Nigeria Inter-Bank Settlement System), as well as downtimes from certain banks, including GTCO, Zenith, Sterling, Stanbic, and Standard Chartered. If your Optimus by Afrinvest account is linked to any of these banks, you might experience delays in receiving funds in your bank account or depositing funds in your wallet.
“We sincerely apologise for any inconvenience this may cause. Rest assured, we are actively monitoring the situation and will update you as soon as everything is back on track.”
Investment firm, i-invest, which is into treasury bills, stocks and other investment services, also informed customers that a planned upgrade by its partner bank would affect its operations.
The firm said, “This is to inform you about a planned upgrade that may temporarily affect your transactions. To improve your experience, our partner bank will undergo maintenance, which may cause delays or disruptions in funding and withdrawals.
“The upgrade is scheduled from 12:00 am on Sunday, October 13, to 9:00 am on Monday, October 14, 2024. We apologise for any inconvenience this may cause and appreciate your patience.”
In recent weeks, some banks have announced the completion of their technology upgrades, while others are still navigating the ongoing migration. The disruptions caused by the system upgrades have left many customers unable to access essential banking services, raising concerns about the banks’ overall preparedness.
Before the widespread system upgrade, which primarily seeks to improve customer experience, banks had over the years relied on foreign companies to manage their IT infrastructure, spending significant amounts on maintenance in foreign currencies.
However, some financial institutions, like Sterling Bank, have started shifting toward locally developed solutions.
The tier-2 lender with a market capitalisation of N115.16bn, according to the latest industry data, switched from the Switzerland-based Temenos T24 system to SeaBaaS, an indigenous solution developed by Peerless.
It began its system upgrade to the new SeaBaaS in August, completing it in September. The upgrade left more than 3 million of its customers unable to access any of Sterling’s banking channels during the transition.
“The migration process is inherently complex and daunting,” IT expert and Head of Marketing at MIM Finance, Bobola Ojo-Ami, told The PUNCH.
“Banks can never be 100 per cent prepared; the initial planning only equips them for what lies ahead. It is during the actual migration that they face the real challenges.”
GTBank, a tier-1 bank, transitioned from ICS Financial Services to India’s Finacle system by EdgeVerve Systems.
The bank warned its customers of potential service disruptions on October 13. Meanwhile, Access Bank postponed its system upgrade, initially scheduled for October 12, to avoid further inconveniences.
Zenith Bank also faced similar challenges, with customers experiencing login issues for three days following an October 1 system update.
FirstBank customers encountered even longer delays, unable to access digital services for six days due to their upgrade.
IT expert Ojo-Ami argued that a vital component of the migration process for large banks was a robust business continuity plan, which included the capability to roll back to the previous system if the new one presents significant challenges or hampers service delivery.
While having a rollback option was essential, he cautioned that it was not always straightforward.
According to Ojo-Ami, in some cases, it may be more effective for banks to persist with the new system rather than revert to the old one.
Another crucial aspect of the system upgrade involves post-migration testing and staff training, which could take an additional one to two months.
As the new system goes live, ongoing monitoring continues to ensure operational efficiency and data integrity.
He explained that banks were transferring the data of millions of customers across various platforms and hundreds or thousands of branches.
He stated that the bank also needed to train thousands of staff members on the new systems, and there may be hardware infrastructure changes required to accommodate the new technology based on specific requirements.
Source: punchng.com
