- Sterling Bank is reportedly pitching its core banking software, SeaBaaS, to other financial institutions, fintechs and telcos
- The bank developed the software to save costs as using foreign-based platforms costs the bank and others huge capital
- With banks increasing their IT-related spending to bolster cybersecurity efforts, Indigenous platforms will come in handy
There are indications that Sterling Bank is pitching its new core banking software, SeaBaaS to financial institutions, fintechs and telecommunication companies (telcos).
Per Tech Cabal, the bank has pitched the software to MTN’s mobile money business, MoMo and aims to reach out to other banks with the idea.
The bank has also reached fintechs with the core banking software pitch as the software was built to give Sterling the semblance and ease that fintechs are notable for.
Recall that Sterling Bank announced its migration from Temenos T24 to the continent’s first-ever indigenous core banking solution, SeaBaaS by Peerless, in September to position Nigeria as a leader in digital banking, driven by local talent and cutting-edge technology.
The bank noted that the newly deployed system leverages advanced data analytics and Artificial Intelligence (AI) that will enable smarter, faster financial services, enhancing both customer experience and operational efficiency.
However, neither Sterling, MTN MoMo, fintechs nor banks have confirmed the news, it may be a possibility seeing that most banks are migrating from foreign-based core banking platforms and exploring other cost-saving alternatives.
Foreign-based IT platforms very expensive for Nigerian banks
Many Nigerian banks have had to switch to other IT platforms due to the huge capital involved in maintaining these platforms.
While Sterling Bank switched from Switzerland-based core banking software Temenos T24 to SeaBaaS, developed by an indigenous firm, Peerless, GTB migrated from the United Kingdom-based ICS Financial Service to Indian-based Finacle by EdgeVerve Systems, Zenith Bank migrated from Phoenix to Flexcube, and FirstBank switched from BankMaster to Finacle.
Temenos T24 is also used by Keystone Bank and the Central Bank of Nigeria (CBN), while Finacle is used by Stanbic IBTC, UBA and FCMB.
Chief Executive Officer of Sterling Bank, Abubakar Suleiman, while announcing the bank’s migration to SeaBaaS, said the switch is to save cost and support the growth of indigenous IT talents.
Suleiman said, “African banks spend hundreds of millions of dollars annually on foreign core banking applications, further putting pressure on the continent’s balance of trade.
“With what our amazing partners at Peerless have done and the successful deployment of this new core banking system, we are not only setting a new standard for Nigerian financial services but paving the way for a future where African institutions can domesticate their technology cost, thereby reducing the cost of financial inclusion.”
Indigenous core banking software to soon become popular
As banks explore cost-saving core banking software alternatives, adopting indigenous options will come in handy.
In the first half of 2024, Zenith, Access, Wema, United Bank for African and Guaranty Trust Holding Company (GTCO), the parent body of Guaranty Trust Bank (GTB), collectively invested N178.77 billion to enhance their Information Technology (IT) infrastructure to ensure smooth operations and to bolster cybersecurity efforts.
The five banks demonstrated commitment to enhancing their digital capabilities as their collective IT investments increased by 203 per cent from N58.8 billion recorded during the same period in 2023 to N178.77 billion in H1 2024.
Explainer: Why banks need to do system upgrade and how long it actually takes
Meanwhile, TheRadar reported that in recent weeks, some Nigerian banks have announced upgrades to their systems to allow for seamless and easy banking.
TheRadar explains what a bank system upgrade is and why it has to be done.
