GTBank’s system upgrade is leaving a trail of transaction woes

Guaranty Trust Bank (GTBank), one of Nigeria’s largest financial institutions, recently completed a significant transition to a new core banking system, Finacle, with promises of improved efficiency and customer service.

However, the rollout has left some customers frustrated, reporting cases of missing funds and service disruptions. Since the system upgrade, numerous customers have come forward alleging discrepancies in their account balances. 

Jabir Ibrahim, a GTBank customer, shared his experience. He noted that he was unable to withdraw money due to an insufficient balance despite having adequate funds in his account. Ibrahim was not notified of the transactions that led to the missing funds, adding to his frustration.

When he contacted GTBank’s customer service, their response via X was to ask for patience while the issue was being resolved.  “They sent me a DM saying that I should exercise patience and that they will soon resolve the issue,” Ibrahim explained. 

Unfortunately, the unresolved issue impacted his day-to-day activities, leaving him stranded while trying to pay workers at his farm.

Similarly, Aisha Hamman, a lawyer, raised concerns on X about irregular transactions. 

“We’re seeing strange activity—accounts getting credited and then debited, some with zero balances suddenly credited and then adjusted again. It’s raising serious red flags,” she tweeted, highlighting the confusion caused by the system upgrade.

Another customer, Sasky Mali, tweeted: “Bruh I was confused. Saw it yesterday and even had the sender’s names at that time. I couldn’t access my own funds apparently.”

In addition to the missing funds, Adéwálé Aderibigbe, a GTBank user, reported not being able to perform essential transactions. 

“Since Friday, I have not been able to do any transfers. I couldn’t even open the app until Monday. The app now opens but transfers are still not working. ATMs are also not functioning properly.”

Another customer says she’s not been able to open the app since Saturday. 

“This is what my app has been showing since last Saturday. Up until now I can’t open my app or do any transactions.”

Read also: GTBank.com: The scary implications of domain

GTBank’s official response

GTBank has acknowledged the service disruptions, sending customers official statements confirming that their digital banking channels are online but still undergoing “fine-tuning.”

Despite these assurances, the bank’s communication has left many customers uneasy, especially those dealing with funds that appear to be missing or transactions that have been reversed or blocked.

One source within the bank hinted at technical complications due to the migration process. 

The source suggested that some transactions initiated during the transition may have been blocked, leading to temporary discrepancies in account balances. 

“Some people might have done transactions before migration that were blocked on their account,” the source noted, adding that these issues would eventually be resolved once the migration is fully completed.

This aligns with GTBank’s explanation that funds remain intact and that the glitches are likely due to delayed synchronisation between the new system and external banking networks. 

According to the source, “Maybe these customers did transactions that day we were transitioning (Friday, October 11), and the other bank got value, but our bank wasn’t debited because of the transition. So, the system blocked the amount automatically.”

Technical glitches or something more?

While technical glitches are a plausible explanation for the missing funds and reversed transactions, the unusual patterns noted by customers—like sudden credits and debits—have led some to question whether there could be deeper issues. 

Lawyer Aisha Hamman’s observation of accounts being adjusted with unexplained credits suggests that there may be more underlying complexities in the system than GTBank is letting on.

The system upgrade at GTBank has had a significant impact on both individual customers and businesses as evidenced by complaints on social media. 

Many customers have reported disruptions to their daily lives, including difficulties with paying bills, accessing their funds, and conducting business transactions. The inability to use their primary bank accounts has caused inconvenience and, in some cases, financial hardship.

Regulatory and legal implications?

The glitches in unsigned debits and difficulty using the app raise several regulatory and legal concerns. 

The bank may be in violation of banking regulations, like the Banking Act 2007 and Deposit Money Banks Regulations, that require the protection of customer funds and the timely provision of banking services.

If the issues persist, GTBank may face regulatory investigations or even legal action from dissatisfied customers. Class-action lawsuits are a possibility, especially if the bank is found to have acted negligently or in bad faith.

Ultimately, there are indications that GTBank’s risk management practices were inadequate. The bank failed to anticipate and mitigate the potential risks associated with a major system upgrade.