Customers on edge as GTBank’s transaction glitch enters second week

Customers of GTBank, the flagship subsidiary of Guaranty Trust Holding Company (GTCO) Plc, have voiced their frustration over the halt in digital transactions and poor in-bank processes, which have caused significant financial setbacks for both individuals and businesses.

GTBank is Nigeria’s leading retail bank. Its operation has an overwhelming impact on the banking industry and other sectors of the economy. This disruption follows the bank’s recent announcement that it was transitioning to a new and advanced Finacle Core Banking Application System.

Despite the upgrade, customers across Nigeria are facing challenges in accessing their funds due to poor network service and outright stoppage with many unable to get through to customer service for assistance.

The Guardian’s visit to its branches in Akowonjo, Ikotun, Ajao Estate, Isolo, Egbeda-Idimu Road and other parts of Lagos revealed a scene of distressed customers, including small business owners who shared stories of how the bank’s technical issues have impacted their operations.

Also, the port sector has been hit hard by the disruptions with clearing agents facing losses due to demurrage accumulation. Among the affected is a shipment agent, Omolara Bernard, who has been dealing with severe setbacks due to her inability to withdraw the N2 million needed to clear a container at the port.

Bernard’s attempts to access her funds, including a full day spent at the bank yesterday, have been unsuccessful, leading to mounting demurrage fees and strained business relationships.

The National Public Relations Officer of the Association of Registered Freight Forwarders of Nigeria (AREFFN), Taiwo Fatomilola, highlighted how the bank’s technical problems have hindered online payment processing, leading to delays in clearing shipments and subsequent financial losses.

A customer who was at a branch in Ajao Estate, Lagos, ThankGod Bernard, said he had been stuck in a failed effort to transfer from his account for a flight ticket since Thursday. Since then, he said, the cost of the ticket has increased from N1.8 million to N2.15 million. He wondered how he would get the shortfall even if he could get money from his account before his trip, which is not likely.

Fatomilola said he paid over N270,000 in demurrage on a Sienna car for five days due to the delays. He condemned the lack of a compensation mechanism for affected customers, emphasising that banks should be held accountable for such disruptions. The impact extends beyond the ports to small businesses relying on the lender’s services for daily operations.

Sarah Muritala, a hairdresser, lamented how the bank’s crisis has disrupted her ability to receive payments from clients, resulting in losses estimated at around N50,000 in just two days.

Muritala explained that payments made to her account have not been reflected, creating challenges in maintaining cash flow for her business. Similarly, Omolola Yusuf, who manages an egg distribution business, reported difficulties in accessing her funds, which has prevented her from making essential purchases for her business.

Femi Oshikoya, a customer, struggled with transferring funds between his accounts and resorted to visiting a bank branch in person, only to be unable to withdraw cash for urgent payments.

Meanwhile, Oluwayomi Ayenibiowo, another user of the bank, expressed concern over unexplained deductions from his account following a failed point of sale (PoS) transaction. He said despite assurances from the bank, the issue remained unresolved, leaving him in a financial bind.

The problems have forced some customers to seek alternative banking solutions, as Mariam Ajiboye, a foodstuff trader and POS operator, shared that she now relies on other banks like Opay and Wema Bank to keep her business running, as GTCO’s network issues have made it difficult to access her funds.

Similarly, Samuel Ojo, a painter, is struggling to meet his financial needs after a client’s payment of N40,000 was delayed for three days due to the bank’s ongoing technical issues.

Automated teller machines (ATMs), mobile app, USSD, PoS and other payment channels have been grounded. Yesterday when the bank opened for skeletal activities, customers’ desks in some branches were disabled, complicating the challenges by those with trapped funds.

Inter-bank interface transfer was also not functional, implying that one could only transfer to a GTBank account. Officials said the situation would improve, and possibily stabilise, before the weekend.