Sterling Bank's Bold Move to SeaBaaS: Revolutionizing Core Banking in Nigeria

Real quick – let’s talk about some cool banking innovations! You know that moment when you send money – either by strolling into a bank or tapping away on their app? Well, for you, that’s pretty much it. But behind the scenes, banks are running a much bigger show!

Banks rely on Core Banking Systems (CBS) to make those transactions possible. These systems are like the brain of the bank, managing everything from customer accounts to processing transactions, loans, deposits, and withdrawals. So, whether you're using mobile or online banking, it's CBS keeping it all in sync!

Now that you're in the loop, let's talk about a bank that just can’t stop innovating: Sterling Bank!

(And hey, quick heads-up, this video isn’t sponsored. We're just here to share the story.)

From ICS Financial System in 2014 to Temenos T24 in 2016, and now, in 2024, they’ve switched to SeaBaas. So why all these moves by Sterling Financial Holdings Company?

To answer that, let's first dive into some key trends driving core banking systems in Nigeria:

• Digital Transformation: Nigerian banks are racing to adopt systems that support digital and mobile banking, especially with the explosion of mobile payments.

• Scalability & Flexibility: Big Nigerian banks need systems that can handle millions of transactions while staying super efficient.

• Financial Inclusion: Banks are integrating with mobile money platforms and agent banking to serve unbanked populations, particularly in rural areas.

• Security & Compliance: With increasing cybersecurity demands and Central Bank of Nigeria regulations, core banking systems are equipped with tools for compliance and risk management.

Sterling’s been ahead of the curve! In 2022, I was amazed when I made a transaction over 1 million Naira and got a call from a bot within 30 seconds to confirm the transaction! I could cancel or approve it right there – while other banks took hours to get a human on the phone for the same thing!

And they didn’t stop there! Sterling went the extra mile by creating a custom mToken app, now upgraded to oneToken. While other banks rely on hardware tokens, emails, or SMS, Sterling made sure they’re less affected by any potential email or SMS interruptions. Smart, right?

Now, why SeaBaas?

SeaBaaS is Sterling Bank's next-gen core banking system, built with cutting-edge tech like microservices architecture, cloud-native infrastructure, open APIs, and AI-driven analytics. It’s designed to be more than just a system – it’s a game-changer that ensures the bank is robust, resilient, and secure, while delivering an unmatched customer experience.

But hey, in any major system upgrade like this, glitches are bound to happen! For over three weeks, the bank services experienced disruptions. Interestingly, Sterling didn’t just leave their customers hanging – they were active enough to operate even on weekends to help out. This decision really made a difference.

That said, there are two things they could have done differently. First, they probably shouldn’t have disabled the old app during the upgrade. Keeping both apps running simultaneously until the new version stabilized would’ve given customers more flexibility. Second, the old sterlingpro.sterling.ng URL should have been automatically routed to the new domain. It took me over a week to figure out the URL had changed! But aside from these two things, I’m proud they took this leap.

SeaBaas also positions Nigeria as a tech exporter, driving innovation, creating jobs, and boosting the local tech ecosystem. By switching to SeaBaaS, Sterling overcame the limitations of foreign systems like lack of customization, slow support, and vendor lock-in, allowing them to better serve the unique needs of the Nigerian market.

They chose SeaBaaS because it delivers stable costs, customization, compliance with Nigerian regulations, faster support, and seamless integration with local services – pushing forward innovation and building trust.

Looking ahead, the future of core banking in Africa is set for even more exciting transformations, with AI, blockchain, and financial inclusion leading the charge. The trend toward digital and mobile banking will keep growing, with fintech playing a massive role in reshaping core banking across the continent.