Transaction Glitches: Zenith Bank Promises to Install Brand New IT Architecture, Reveals Amount Spent
- Zenith Bank has promised to install a brand-new cutting-edge technology infrastructure to cope with surging transaction demands
- The bank said it spent over N30 billion on technology infrastructure which it said is its most significant operating expenses
- The bank, however, reported a profit of N223.9 billion, a decline from the N224.5 billion
Amid transaction hitches that hit several banks at the height of the cash crisis, one of Nigeria’s biggest banks, Zenith Bank, has said it is installing a brand-new technology infrastructure to absorb the vast transaction demands of its customers, according to reporting by Nairametrics.
The bank was one of the banks in Nigeria which experienced unprecedented transaction glitches caused by the botched cashless policy of the Central Bank of Nigeria.
Source: UGC
Banks' weaknesses exposed by CBN's cashless policy
The CBN’s cashless policy exposed the weakness of many banks, which balked under the weight of customer transaction requests, with many saying their transactions took as long as seven days to execute.
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Frustrated Nigerians began a desperate search for alternative transaction platforms, almost deserting the traditional banks, which they said failed to deliver on their promise of top-notch, cutting-edge technology.
Several bank customers stopped patronizing their banks and opted for payment platforms for easy transactions.
Zenith Bank declared profit but blamed headwinds for dip
Zenith Bank’s promise comes as it reported a profit of N223.9 billion, a decline from the N224.5 billion reported last year.
According to the bank, the Ghanaian sovereign bond default significantly contributed to its profit dip.
It also stated that naira scarcity contributed to its operational challenges as it piled pressure on its infrastructure.
The bank said it spent N30.9 billion on its technology infrastructure, the highest single operating expenses it incurred apart from the AMCON levy.
Nigerians abandon bank apps, rush payment platforms amid transaction glitches
Legit.ng reported that banks are failing their customers in their numbers and cannot handle the volume of transaction requests by Nigerians.
Since the beginning of the Central Bank of Nigeria's (CBN)'s cashless policy, Nigerians have expressed utter disappointment and disgust with their financial institutions, which they hitherto relied on for seamless transactions.
Most bank platforms and infrastructure were not built for the heavy usage that the naira redesign policy and cash scarcity have created.
Source: Legit.ng
