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January 05.2025

2 Minutes Read

How Tech Challenges Led GTBank to Seek Court Action for ₦1.9 Billion Error

Modern bank building with advanced banking technology.

GTBank's Technology Transition and Unforeseen Errors

In a significant move reflecting the complexities of digital banking transformations, Guaranty Trust Bank (GTBank) recently faced a hurdle while upgrading its core banking systems. Known for its innovative approach, the bank's switch from Basis to Finacle in October 2024 was meant to modernize operations but led to unexpected issues, including a transactional mishap. This technological misstep resulted in an unexpected duplicate credit totaling ₦1.9 billion to customer accounts over two days.

The Court's Directive to Address the Banking Glitch

Upon unearthing the error, GTBank took swift action by initiating an internal probe that spotlighted the accidental transactions. The bank approached the legal system for assistance, resulting in Justice F.N Ogazi of the Federal High Court, Lagos, granting an order to reclaim the erroneously disbursed funds. This order empowered the bank to impose restrictions on affected accounts, ensuring the recovery of misplaced funds.

Impact of Core System Upgrades Across Nigeria

GTBank was not alone in facing such hurdles; it stood amidst a wave of technological upgrades in the banking sector, affecting several major Nigerian banks. These transitions, though aimed at improving customer satisfaction by leveraging advanced tech platforms like Finacle from Infosys, led to disruptions in service for multiple weeks. The central bank later mandated that future software upgrades receive regulatory approval, a lesson learned from the widespread disturbances.

Teething Challenges and Customer Reactions

Customers of GTBank weren't shy about voicing their dissatisfaction online, particularly on platforms like X, between September and November 2024. The banking channel instability coupled with a lack of communication from GTBank rose customer ire. A subsequent public apology from the bank was issued in November, acknowledging the difficulty faced by its customers and the efforts being made to resolve these issues.

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How Tech Challenges Led GTBank to Seek Court Action for ₦1.9 Billion Error

GTBank's Technology Transition and Unforeseen Errors

The Court's Directive to Address the Banking Glitch

Impact of Core System Upgrades Across Nigeria

Teething Challenges and Customer Reactions

+650 980 9020

AVAILABLE FROM 8AM - 5PM EST

6749 S. Westnedge Avenue, Suite K-161, Portage, Michigan, U.S.A

ABOUT US

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