Stanbic Holdings Plc, Kenya’s sixth-largest bank, has completed an upgrade to its core banking system, Temenos T24, moving from version R17 to the latest R23 release.
The upgrade, aimed at enhancing security and digital capabilities, caused service disruptions across Stanbic’s banking channels from October 19 to 21. Although the bank anticipated full functionality by October 21, some customers reported on October 23 that they were still unable to access accounts or make transfers.
Temenos T24, a core banking application used by over 950 banks globally, supports Stanbic’s retail, business, corporate, and wealth management services. Stanbic collaborated with U.S.-based Orion Innovation for this upgrade, marking it as one of the first banks to implement the latest T24 version globally. Earlier in 2024, the bank had completed a preliminary upgrade to R17, introducing cloud-based digital banking functionalities.
The complexities surrounding core banking upgrades have pushed Kenyan banks to invest heavily in technical talent to manage such transitions.
The tier-1 bank NCBA increased IT staffing costs by 30% in 2023 due to rising competition for tech professionals across banking, telecoms, and big tech firms. Equity Bank similarly reported a 32% rise in tech staff expenses to support their digital transformation goals.
While in-house core banking solutions can allow for more customization and control, they often bring high costs and operational challenges, leading banks like Stanbic to partner with specialized firms like Orion Innovation.
According to industry sources, outdated technology and the involvement of multiple stakeholders often make upgrades complex and time-consuming.
Stanbic assured customers that it is actively monitoring the system to resolve any lingering issues. The bank’s recent upgrade shows a broader trend in the Kenyan banking sector, where digital transformation is essential for staying competitive amid an increasingly digital consumer base.