Sterling Bank is pitching its new custom-built core banking application software, SEABaaS, to financial institutions and fintech companies.
A report states that Sterling Bank has pitched SeaBaaS to MoMo, MTN’s Mobile Money business. This sales pitch is consistent with the bank’s plan to save costs by building its core banking application software and licensing it to other banks and financial institutions. However, Sterling Bank and MTN MoMo have yet to comment.
Another report states that Sterling is pitching to fintechs because SEABaaS aims to provide Sterling Bank with the agility of a fintech. Sterling has been more adventurous than other banks in its category, creating asset financing products, focusing on a sleek user experience on its banking app, and launching Alternative Bank, a non-interest bank. With several products and even more in development, Sterling hopes to convince fintechs who want to move fast and break things that SEABaaS is perfect for them.
Beyond the fintechs, it also hopes to attract business from other banks. With tier-1 banks billed to spend ₦80 billion on licensing fees for core banking software in 2024 alone, SEABaaS may be a cheaper offering. Yet, people familiar with the matter say the banks will not be an easy sell.
For banks, the end of the year is a crucial period where accounts have to be balanced and transactions reconciled in preparation for the new year.
SEABaaS was jointly developed by Bazara Tech Inc., Peerless Technologies, and a third undisclosed company. It is unclear how much Sterling spent to develop the software, but the bank was keen to localise cost, people familiar with the matter said. Banking software like Finacle and Temenos are priced in dollars. SEABaaS will likely make some inroads with tier-2 banks keen to localise costs.
