A Nigerian tier-2 bank, with a market capitalization of ₦115.16 billion, is in the process of migrating to a new custom-built core banking application called SEABaaS. This migration, which began on August 30, has resulted in inconvenience for over 3 million customers who are currently unable to access the bank’s services. Some of these customers have expressed their frustrations on various social media platforms.
While the bank did notify customers about potential service disruptions during the upgrade, specific details were not provided. Upgrading a core banking application is a significant undertaking for any financial institution, as emphasized by a software expert at a Nigerian bank who chose to remain anonymous.
Developing such systems is a complex, costly, and potentially risky process. Past incidents, like the system upgrade failure at Royal Bank of Scotland in 2012, which left millions of customers unable to access their accounts, serve as cautionary tales. In that case, the bank faced substantial fines from regulators.
The new software, SEABaaS, was tailored to meet the specifications of the Nigerian bank. While there is an indication that Bazara Tech Inc., a Nigerian software company, may have been involved in the development, official confirmation is pending.
According to Bazara Tech Inc.’s website, SEABaaS is designed to provide a cutting-edge core banking SaaS solution that enhances user experience for enterprise customers. The software’s architecture includes features like microservices, APIs, hybrid cloud, multi-cloud capabilities, a unified customer view, AI, machine learning functionalities, and intuitive user interfaces.
The decision to switch from the previous banking software used by the bank, Temenos T24, to SEABaaS could be motivated by various factors such as cost considerations, challenges in integrating with existing systems, or a desire to avoid dependency on specific vendors.
While the bank has not responded to requests for comments, it plans to share more details about the new banking software and the migration process once the current service disruption is resolved. This development is seen as a significant step forward in the Nigerian banking sector.
However, the bank will need to address customer concerns promptly to prevent customer dissatisfaction and potential attrition during this transition period.