Commercial banks will need up to one year to migrate customers’ data, following the ongoing upgrade of their core banking applications, technology experts have stated.
They said the complex process involves transferring trillions of customer records from outdated systems to new platforms, requiring meticulous planning and execution.
While some banks, including Access Bank and Zenith Bank, have recently announced the successful completion of their technology upgrades, others are still navigating the ongoing data migration.
The disruptions caused by the transition have left many customers unable to access essential banking services, raising concerns about the banks’ overall preparedness.
A technology expert and Head of Marketing at MIM Finance, Bobola Ojo-Ami, stated, “The migration process is inherently complex and daunting.
“Banks can never be 100 per cent prepared; initial planning only equips them for what lies ahead. The real challenges emerge during the actual migration,” he told The PUNCH.
For years, Nigerian banks have relied on foreign companies for IT infrastructure management, incurring substantial costs in foreign currencies for maintenance.
However, some institutions, such as Sterling Bank, have begun shifting towards locally developed solutions to improve efficiency and reduce costs.
According to Ami, a robust business continuity plan is crucial for large banks during this process, allowing them to revert to their previous systems if significant challenges arise with the new platforms.
He cautioned that executing a rollback could be complicated.
“In some cases, it may be more effective for banks to continue with the new system rather than revert to the old one,” he added.
Post-migration testing and staff training are also vital components of the upgrade, potentially extending the timeline by an additional one to two months. Even after the new systems go live, ongoing monitoring will be essential to ensure operational efficiency and data integrity.
Ojo-Ami highlighted the scope of the task at hand, noting that banks are transferring vast amounts of data across various platforms and numerous branches.
Additionally, they must train thousands of staff members on the new systems, which might require hardware infrastructure changes to accommodate the upgraded technology, he said.
Artificial Intelligence Researcher at RealSearch and Partners Inc., Enakirrerhi Truthful, told The PUNCH that banks failed to prepare for worst-case scenarios during the upgrades.
Truthful stated that the disruptions affected businesses and delayed personal transactions, underscoring the need for more robust scenario planning.
“This outage also revealed a lack of contingency planning. What happens if things go south during an upgrade? Do we have a backup plan? For many of the banks, the answer appears to be no.”
“We saw firsthand how much we depend on our banking system for our daily lives. People couldn’t pay for groceries, businesses couldn’t settle payments, and even international transactions were affected. This wasn’t just about a technical glitch; it impacted commerce, security, and even our confidence in the financial system,” he lamented.