DBS online banking down

last SG · 2010-07-14T07:54:36+00:00

I closed my POSB account last year. Queued for 1 hour plus to close their bloody account. Seriously, with such poor service, its a miracle they actually su...

likeyou SG

IT will get the blame for that.

sbst275 SG

so wat does it tell abt full outsourcing?

QX179R SG

DBS CEO writes to customers personally apologizing for last week's service disruption

SINGAPORE: DBS Group CEO Piyush Gupta has written to DBS and POSB customers, personally apologizing for the inconvenience caused by the sudden disruption in banking and ATM services from 3 am to 10 am on July 5.

In a letter posted on the bank's website, he said customers have every right to expect uninterrupted services 24/7, 365 days a year from the banking group.

He said he's sorry the group has failed them.

The CEO said it was the first time DBS had experienced a system outage and service disruption of such magnitude.

Explaining what happened, Mr Gupta said the outage last week was triggered during a routine repair job on a component within the disk storage subsystem connected to the mainframe.

A component replacement was scheduled for 3 am, a quiet period, which is standard operating procedure.

Unfortunately, while IBM was conducting this routine replacement, a procedural error inadvertently triggered a malfunction in the multiple layers of systems redundancies which led to the outage.

Mr Gupta said he's treating this matter with utmost priority and the full scale investigation that was initiated last week is still underway.

This investigation is being done with the support of IBM's labs in the US and their engineering teams in Asia.

So far, he said DBS understands from IBM that an outdated procedure was used to carry out the repair.

In short, a procedural error in what was to have been a routine maintenance operation subsequently caused a complete system outage.

He said DBS takes full responsibility for this incident and it's working closely with IBM to ensure that such lapses do not recur or cause such significant impact.

In fact, he said 12 months ago DBS commenced work on a major two- year program to further strengthen the resiliency of our system and minimize the risk of service disruptions.

Mr Gupta also assured customers that all payments and transactions that were scheduled to be made on July 5 were completed.

On hindsight, he said DBS' internal escalation process could have been more immediate.

Mr Gupta said the bank could also have done more to mobilise broadcast channels to inform customers of the disruption in services first thing in the morning.

Mr Gupta said there have been valuable lessons learned. - CNA/vm

QX179R SG

MAS concerned about DBS' service disruption on July 5

SINGAPORE: The Monetary Authority of Singapore, MAS, has informed DBS that it's seriously concerned with the disruption of the bank's services last week on July 5.

MAS has also instructed DBS to give a full account of the incident to the public, including actions it will take to prevent future recurrence.

It has noted DBS' explanation for the failure and will review its investigation report on the incident.

MAS said it will review the outcome of the bank's investigation and the extent to which the bank has failed to meet the recommended standards set out in the Internet Banking and Technology Risk Management Guidelines before determining the appropriate regulatory action to be taken.

On the MAS website, one guideline listed is that banks, their service providers and vendors who provide internet banking services, must ensure they have ample resources to deliver consistently reliable service - one guideline which DBS may have breached.

DBS Group CEO Piyush Gupta has written to customer, personally apologising for the disruption.

He also explained that the outage was triggered during a routine repair job by IBM. An error had triggered a malfunction.

A full scale investigation initiated last week is still underway.

He said DBS understands from IBM that an outdated procedure was used to carry out the repair work.

IBM explained that a failure to apply the correct procedure had inadvertently caused the bank's service outage.

In a statement released Tuesday, IBM says its immediate priority was to ensure customer data was not compromised in any way, while it sought to restore services as quickly as possible.

IBM said it has also taken steps to enhance training of its personnel related to current procedures and brought in experts from its global team to provide further assistance.

IBM also apologised for the inconvenience caused to customers of DBS and POSB during the service outage.

- CNA/al/jm

Arapahoe SG

is that indian IT contract engineer?

QX179R SG

MAS & DBS in dialogue to investigate banking, ATM disruptions during outage

SINGAPORE: The Monetary Authority of Singapore says it is in dialogue with DBS Bank on investigations into the seven-hour outage that disrupted banking and ATM services at DBS and POSB on July 5.

More than 1,000 ATM machines as well as some branch services were affected by the disruption.

DBS had said that the glitch was caused by a botched routine computer repair job.

It is working with its IT vendor IBM to ensure that such lapses do not recur.

Asked about the issue during a news conference on its annual report Thursday, MAS said it will assess the outcome of the investigation before deciding on the appropriate regulatory action to take.

Deputy managing director, Financial Supervision, MAS, Teo Swee Lian said: "It would be premature to say anymore at this stage, we should look at what the investigation come up with, but every one is taking it very seriously, both the bank as well as ourselves.

"When we have a full understanding of what happened and what were the causes, then we would look to see how we could address such gaps."

- CNA/jm

QX179R SG

DBS Bank censured by MAS for management oversight in July ATM breakdown

Singapore: The Monetary Authority of Singapore (MAS) has censured DBS Bank for management oversight over its outsourced IT systems, networks, operations and infrastructure that led to a service outage of its banking systems on 5 July.

In a statement released Wednesday, it said DBS Bank has not adequately observed three Sections of the MAS Internet Banking and Technology Risk Management Guidelines (IBTRM Guidelines).

The widespread system, noted the MAS, also revealed weaknesses in DBS Bank's technology and operational risk management controls.

MAS said that investigations showed the breakdown arose in part from the failure of the bank to put in place a robust technology risk management framework to ensure the reliability, resiliency and speedy recoverability of the bank’s IBM mainframe-storage area network (SAN) platform and architecture.

It said DBS Bank did not exercise sufficient oversight of the maintenance, functional and operational practices and controls employed by IBM.

“MAS takes a serious view of this incident. We expect all financial institutions to put in place a robust technology risk management framework that will ensure the reliability, resiliency and speedy recoverability of the institution's IT systems and infrastructure, whether outsourced or in-house" said Ms Teo Swee Lian, Deputy Managing Director, Financial Supervision, MAS.

She added that the MAS has recently written to the CEOs of all financial institutions to remind them of its expectations, adding "MAS will not hesitate to take appropriate supervisory action against any financial institution which fails to meet the standards set in the IBTRM Guidelines.”

The MAS said DBS Bank has been told to conduct an independent review of the incident as well as to adopt remedial measures.

This includes steps to diversify and reduce its material outsourcing risks so that it does not overly rely on a single service provider or a single vendor’s products and services.

The bank has to also conduct a thorough internal review of the SAN mainframe and open system architectures and configurations to discover and correct any single points of failure or operational and functional fragility.

The MAS has also told the bank to redesign its online and branch banking systems platform to reduce risks and allow more flexibility and resiliency in operations and recoveries.

A review of outsourcing vendors' processes and functions related to services and hardware/software maintenance has also been suggested, as well as to make sure maintenance and support teams from vendors have the requisite level of skill, capability and experience to meet the bank's service and support criteria.

The bank will also have to assess the ability of outsourcing vendors to meet, at all times, the bank's service level requirements and recovery point objectives for all mission critical systems.

In addition, it has to set up a Systems and Network Command Centre within the bank to continually monitor the operation, performance and health of its systems, networks, storage platforms and hardware and software devices.

Finally, the MAS has told the bank to strengthen its capabilities and resources for a rapid disaster recovery plan when a major system failure or site catastrophe occurs.

In its statement, the MAS said DBS Bank has been told to apply a multiplier of 1.2 times to its risk-weighted assets for operational risk, which translates to the bank setting aside about S$230 million extra in regulatory capital on a group basis based on numbers as at 30 June 2010.

The additional capital requirement will be reviewed when MAS is satisfied that the bank has put in place adequate risk control measures to address the deficiencies identified.

The MAS also said it also expects the bank to take immediate steps to improve its customer communication process and ensure timely communication with stakeholders with effect.

- CNA/sf

QX179R SG

MAS instructs DBS Bank to set aside $230m in regulatory capital

SINGAPORE: The Monetary Authority of Singapore (MAS) has instructed DBS Bank to set aside about $230 million in regulatory capital, as part of its supervisory action against the service outage of the lender's online and branch banking system on 5 July.

The more than seven-hour outage caused significant inconvenience to the bank's customers.

MAS says the additional capital requirement will be reviewed when it is satisfied that the bank has put in place adequate risk control measures to address the deficiencies identified.

It says based on investigation reports and its own analysis, the breakdown was in part a result of the failure by the bank to put in place a robust technology risk management framework.

DBS Bank did not exercise sufficient oversight of the maintenance, functional and operational practices and controls employed by IBM.

It has therefore not adequately observed Sections 5, 7 and 8 of the MAS guidelines on Internet Banking and Technology Risk Management.

MAS has also directed DBS Bank to adopt several measures including diversifying and reducing its material outsourcing risks so that it does not overly rely on a single service provider or a single vendor's products and services.

It also expects the bank to take steps to improve its customer communication process and ensure timely communication with stakeholders with immediate effect.

Deputy managing director, Financial Supervision, at MAS, Teo Swee Lian said the regulator has recently written to the CEOs of all financial institutions to remind them of the need for a robust technology risk management framework.

She says MAS will not hesitate to take appropriate supervisory action against any financial institution which fails to meet the standards set in the guidelines.

- CNA/jm

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