Sterling Bank, a tier-2 financial institution in Nigeria with a market capitalization of ₦115.16 billion, is in the process of transitioning to SEABaaS, a newly developed core banking application. This migration, which commenced on August 30, has rendered over 3 million customers unable to access any of Sterling’s banking services, prompting numerous complaints on social media.

“I haven’t been able to access the One Bank app for more than five days,” stated a customer of Sterling Bank who preferred to remain anonymous in an interview with TechCabal.

Although the bank informed its customers about potential service interruptions due to the upgrade, it did not offer detailed information.

“A core banking application is essential for all financial institutions, making an upgrade of this magnitude significant,” remarked a software expert from another Nigerian bank, who also requested anonymity.

Developing such systems is often a lengthy, costly, and risky endeavor. A failed system upgrade at the Royal Bank of Scotland (RBS) in 2012 left over 6 million customers without access to their accounts, resulting in a £56 million fine from regulators.

According to three sources familiar with the situation, SEABaaS was tailored to meet Sterling Bank’s requirements. A search reveals that SEABaaS is also a product of Bazara Tech Inc., a Nigerian software firm, indicating their involvement in the software's development.

Bazara Tech Inc. describes SEABaaS on its website as a forward-looking, platform-agnostic core banking SaaS solution aimed at enhancing user experience for enterprise clients. Its architecture incorporates microservices, APIs, hybrid cloud, and multi-cloud capabilities, along with a comprehensive 360-degree customer view, AI and machine learning functionalities, and user-friendly interfaces.

Bazara Tech Inc. has not yet responded to requests for comments.

Previously, Sterling Bank utilized Temenos T24, a banking software also employed by Keystone Bank and the Central Bank of Nigeria. Other notable core banking software options include Finacle, which is used by First Bank, Stanbic IBTC, UBA, and FCMB.

The decision to change its banking application may stem from financial factors, challenges in integrating with existing legacy systems, or efforts to prevent vendor lock-in.

Sterling Bank has not provided any comments regarding this matter.

According to two sources familiar with the situation, Sterling Bank plans to disclose information about the new banking software and the migration process next week, once it resolves the ongoing downtime. The bank views the development of its proprietary banking software as a significant advancement in the Nigerian banking sector, as noted by the same sources.

Prior to the official announcement to the media, the bank must address customer concerns, as many users were still unable to access the One Bank app at the time of this report, to prevent them from seeking alternatives during the migration process.