Zenith Bank Services Restored After Lengthy IT Disruption
Zenith Bank, one of Nigeria’s largest financial institutions, announced the restoration of its banking services after a significant disruption that lasted more than 48 hours. The disruption, which affected various banking channels, left many customers stranded, especially those awaiting salary payments. The outage was caused by an Information Technology (IT) upgrade, which the bank says was necessary to improve its service delivery.
What Happened?
The issue began on Tuesday, October 1, 2024, when Zenith Bank informed its customers via social media that it would conduct routine IT maintenance. Initially, the bank assured users that services would resume after 2:30 PM the same day. However, customers soon found themselves unable to access their accounts, transfer funds, or use their debit cards for over 48 hours—well beyond the anticipated maintenance window.
This extended outage created a wave of frustration among Zenith Bank’s customers, many of whom took to social media to express their grievances. The situation was particularly stressful for salary earners, as the outage coincided with payday, leaving them unable to withdraw money or make transactions.
Zenith Bank’s Response
On Thursday, Zenith Bank took to its X (formerly Twitter) handle to announce that significant progress had been made in restoring its services. In the official statement, the bank apologized to its customers for the inconvenience caused, explaining that the IT upgrade was part of efforts to serve them better. The statement read:
“We sincerely apologize for the service disruptions you experienced recently on our banking channels. This was due to an Information Technology upgrade aimed at improving the quality of service we provide you. We have made significant progress with the upgrade, and you can now perform transactions conveniently. You can also visit any of our branches nationwide to perform your transactions.”
However, the bank also hinted that the IT upgrade is not yet fully completed, suggesting that some issues might still persist. Despite the progress, Zenith Bank has yet to confirm when the full upgrade will be finished.
Underlying Issue: A Core Banking Migration?
Reports from industry insiders suggest that Zenith Bank is not merely conducting routine IT maintenance but is in the process of migrating its core banking system. Previously, the bank relied on Phoenix, a software developed by London-based Finastra. It is believed that the bank is transitioning to Oracle’s Flexcube, a more advanced platform used by several other Nigerian banks.
A core banking system migration is no small feat. It involves transferring large volumes of data and implementing more complex procedures than standard IT maintenance, which might explain the prolonged service outage. Zenith Bank has neither confirmed nor denied these reports, leaving customers to speculate about the real cause of the disruption.
Financial Implications
The timing of the outage may have financial consequences for Zenith Bank. In the first half of 2024, the bank reported a significant 85.6% increase in revenue from electronic transactions, generating N41.2 billion compared to N22.2 billion in the first half of 2023. However, this disruption could impact the bank’s Q4 2024 earnings, as customers were unable to transact electronically for nearly two days.
Interestingly, Zenith Bank had increased its IT spending by a massive 167% in the first half of 2024, raising it from N8.6 billion in H1 2023 to N23 billion in H1 2024. This indicates that the bank is investing heavily in technology, but the recent outage may undermine the confidence of its customers in these upgrades.
Social Media Reactions:
- “Zenith Bank should have been more transparent about this upgrade. 48 hours without access is unacceptable!” – @NaijaFinTech
- “My salary got delayed because of Zenith Bank’s IT issues! This is so frustrating.” – @GraceLagos
- “Switching core banking software is a big deal, but they should have planned better for the disruption.” – @TechGuruNaija
- “Glad to see services are back up, but they should’ve communicated more during the downtime.” – @CustomerVoice
- “Migrating to Oracle Flexcube is a smart move, but the rollout could have been smoother. #ZenithBank” – @DigitalBankingPro
- “Good to know that Zenith Bank is investing in IT, but this outage has been a mess for users.” – @BankingWatchdog
- “This level of downtime during payday? That’s just poor planning from Zenith Bank.” – @SalaryTalk
- “Looks like Zenith Bank is upgrading its system for the future. I hope this means fewer outages in the long run.” – @TechFuturesAfrica
- “Banks need to be more transparent with customers during major upgrades like this. #ZenithBank” – @LagosBusiness
- “Finally got access to my Zenith Bank account after two days. Hope this upgrade was worth the wait.” – @ConsumerRightsNG
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