In a move signaling a broader shift in Nigeria’s banking technology landscape, Guaranty Trust Bank (GTBank) has transitioned to a new core banking system provided by Indian tech giant Infosys. The new platform, Finacle, marks the end of GTBank’s long-standing relationship with ICS Financial Systems (ICSFS), a rival banking software vendor headquartered in Amman, Jordan. This development is part of a larger trend among Nigerian financial institutions seeking to modernize their operations through partnerships with leading Indian banking software providers.

GTBank, one of the largest financial institutions in Nigeria, offers a broad range of services, including retail, wealth management, and corporate banking, with a footprint across East and West Africa as well as the United Kingdom. The decision to replace ICSFS’s legacy ICS Banks software — used in countries such as Gambia, Ghana, Kenya, and Sierra Leone, among others — with Infosys’ Finacle is seen as a strategic move aimed at enhancing its digital capabilities across its various markets.

GTBank’s decision to adopt Finacle is part of a broader, multi-year agreement with Infosys to drive comprehensive transformation across its global operations. According to Segun Agbaje, Group CEO of Guaranty Trust Holding Company, the transition to Finacle aligns with the bank’s long-term vision of delivering “seamless and connected experiences across every customer touchpoint.”

Described as “superior, agile, and scalable,” the new core banking platform is expected to enhance the bank’s ability to respond to the evolving needs of its customers. By integrating both retail and corporate banking solutions, the system is designed to support faster innovation and provide GTBank with a competitive edge in the increasingly digital banking landscape.

For Infosys, the deal with GTBank underscores its growing presence in the African financial services sector. Venkatramana Gosavi, Senior Vice President and Global Head of Infosys Finacle, emphasized that the bank-wide digitization and automation enabled by Finacle will significantly reduce GTBank’s overall operational costs, allowing it to focus on expanding its market share in Nigeria and beyond.

GTBank is not alone in looking to India for banking technology solutions. Zenith Bank, another major player in Nigeria’s financial sector, is in the process of migrating its system from Phoenix, a core banking platform developed by London-based Finastra, to Oracle’s Flexcube, an Indian-based system.

However, the transition has not been without challenges. On October 1, Zenith Bank experienced a major service outage, leaving many customers unable to access the bank’s app or carry out transactions. The bank attributed the issue to a “routine IT maintenance,” but as of the time of this report, many customers were still experiencing disruptions, despite the bank’s assurances that it had made “significant progress” in restoring services.

The outage, which coincided with the bank’s IT migration to Oracle’s Flexcube, has raised concerns among customers and highlighted the potential risks of large-scale system upgrades. Despite the temporary setbacks, Zenith Bank’s management remains committed to completing the migration process, which is expected to provide greater operational efficiencies and improved digital offerings in the long run.

India’s Growing Role in Nigerian Banking

The moves by GTBank and Zenith Bank are emblematic of a wider shift within the Nigerian financial services industry. Indian banking software providers such as Infosys and Oracle are increasingly seen as strategic partners for Nigerian banks seeking to modernize their core operations, digitize services, and reduce costs. These partnerships come at a time when competition in Nigeria’s banking sector is intensifying, driven by the rise of fintech companies and the growing demand for more agile and customer-centric banking solutions.

The reliance on Indian tech firms for software needs in the Nigerian banking industry also indicates the limitations of existing legacy systems, many of which have struggled to keep pace with the rapid evolution of digital banking. With Nigeria’s banking sector increasingly moving toward cloud-based solutions, automation, and artificial intelligence, the adoption of advanced core banking platforms from India could provide Nigerian banks with the technological infrastructure needed to remain competitive in a fast-changing market.