A Nigerian bank with a market capitalization of ₦115.16 billion is introducing its new custom-built core banking application software, SEABaaS, to financial institutions and fintech companies.
The bank has presented SEABaaS to MoMo, MTN’s Mobile Money business, in an effort to save costs by developing its own core banking application software and offering it to other banks and financial institutions.
SEABaaS aims to give the bank the agility of a fintech, enabling it to innovate with products like asset financing, user-friendly banking apps, and a non-interest bank called Alternative Bank. With a variety of products and more in the pipeline, Sterling Bank is targeting fintechs looking to innovate quickly.
Aside from fintechs, the bank is also looking to attract interest from other banks, especially considering that tier-1 banks are projected to spend ₦80 billion on core banking software licensing fees in 2024. SEABaaS could offer a more cost-effective solution, although convincing banks to adopt it might not be straightforward.
SEABaaS was collaboratively developed by Bazara Tech Inc, Peerless Technologies, and another undisclosed company. The bank focused on localizing costs, as existing banking software like Finacle and Temenos are priced in dollars. This localization strategy may appeal to tier-2 banks seeking to reduce expenses.