As Nigerian banks increasingly embrace digital transformation, experts have underscored the critical role of core banking applications during system migrations.
They said these applications are essential for managing key banking functions such as account management, transaction processing, loans, and customer interactions.
Chief Operating Officer of Loma Bank and Chief Product Officer of Fintava, Ayomide Olupitan, emphasised that migrating from outdated systems to more advanced platforms is a complex process that requires careful planning to avoid disruptions that could erode customer trust.
Since September, at least four major banks in the country have switched their core banking applications, including tier-1 lenders such as Zenith Bank and Guaranty Trust Bank.
“The migration process is essential for staying competitive in the digital market, but it requires a balance between innovation and security,” Olupitan told The PUNCH in a note.
“Core banking systems are at the heart of every financial institution’s operations, and any downtime or data loss during migration can have significant consequences.”
Olupitan pointed out that maintaining service continuity during migration is a major challenge for banks. Often, institutions run multiple systems simultaneously to minimize customer impact.
For example, Olupitan noted, some Nigerian banks strategically began migrations during the recent cash crunch, capitalizing on reduced in-person transactions to ease the transition.
Security is also a major concern during system migrations, Olupitan added. With rising cyber threats targeting the financial sector, he underscored the importance of investing in systems with robust security features such as multi-factor authentication and enhanced data encryption.
“Security should be a top priority throughout the migration process to safeguard sensitive customer data,” Olupitan stated.
Another key consideration in the migration process is the ability of new systems to meet the growing demands of digital banking.
As more customers opt for digital services, banks need platforms that can support high transaction volumes, complex functionalities, and regulatory compliance. Olupitan stressed the need for scalability and adaptability.
“Modern core banking platforms must be scalable and adaptable to future technological advancements,” Olupitan said.
Despite the challenges, Olupitan expressed optimism about the future of core banking migrations in Nigeria. He believes that as more banks successfully complete their migrations, the sector will see improved service delivery, enhanced efficiency, and stronger security.
“The successful implementation of new core banking systems is crucial for the long-term growth of the banking sector,” Olupitan concluded. “Nigeria is on the right path toward a fully digital future.”
The experts agree that robust core banking systems will be key to ensuring long-term sustainability and competitiveness in the evolving digital banking landscape.