Kenya’s sixth-largest bank recently completed an upgrade of its core banking application, Temenos 24 (T24 R23), with a market capitalisation of KES 49.14 billion ($381 million).
During the upgrade process, the bank notified its customers of service disruptions across its banking channels between October 19 and 21. Following the deadline, some customers reported issues accessing their accounts or making transfers.
The upgraded Temenos 24 application, utilized by over 950 banks globally, including Kenya Commercial Bank (KCB), covers retail, business, corporate, and wealth management services. The bank partnered with US-based Orion Innovation, a digital transformation specialist, to upgrade the software.
Stanbic shared that they upgraded to the latest release, T24 R23, highlighting their early adoption among global banks. The bank had initiated the core banking platform upgrade in early 2024, progressing from T24 R17 to T24 R23 with added security features.
The recent disruptions underscore the challenges of upgrading core banking systems, leading Kenyan banks to invest in new talent to address technical issues. This investment in IT staff has been observed in various banks, including a tier-1 bank that reported a significant increase in IT staff costs.
Bank executives are recognizing the importance of tech experts and data scientists in the industry. While some banks opt to develop an in-house core banking platform for better control and security, others like Stanbic choose to outsource to leverage expertise and cost efficiency.
Managing integrations and multiple stakeholders within banks with differing priorities can complicate upgrades, according to industry insiders.