Singapore's DBS and Citibank customers faced several hours of service disruption on Saturday, October 14. The outage affected various digital services, including online banking and payment platforms.
The root of the problem
Both banks pointed to a technical issue at a data centre as the cause. DBS stated that the problem was at a data centre used by multiple organisations. The bank swung into action to shift to its backup data centre and started restoring services progressively from 7 pm. By 10:10 pm, they announced that all ATMs were operational again, although some digital services remained offline.
DBS online and physical services down; thousands of complaints on Downdetector https://t.co/jgEvOQwg6K
— The Straits Times (@straits_times) October 14, 2023
Data centre provider Equinix confirmed that the technical glitch had been resolved and is in contact with affected customers. Citibank described the problem as a “temporary outage” and began restoring services as well.
The Monetary Authority of Singapore kept in the loop
Both banks promptly informed the Monetary Authority of Singapore (MAS) about the service disruptions. The authority revealed that its initial investigations indicated that a common data centre used by both banks was the culprit. MAS is following up closely with both financial institutions to ensure the complete restoration of services and effective communication with affected customers.
Public response and previous incidents
The outage started around 3 pm and was widely reported on social media and Downdetector, a website that tracks service disruptions. Many users expressed their frustrations, citing problems with ongoing transactions and payments at retail outlets. DBS reopened all but three of its branches to deal with the situation and assured customers that their money and deposits were safe. This is not the first time DBS has faced such disruptions. Earlier this year, the bank experienced two similar incidents that led MAS to impose additional capital requirements.
Notably, the disruption was not limited to Singapore; customers outside the country reported difficulties using credit cards issued by these banks for online transactions. Meanwhile, services from other local banks like UOB and OCBC remained unaffected, although some OCBC customers reported issues completing transactions involving DBS.
While digital disruptions are an operational risk, the quick response from DBS and Citibank and the oversight from MAS are steps in the right direction to instil confidence among users. The event also serves as a reminder to banks and service providers to continually enhance their digital infrastructure to avoid similar incidents in the future.
