After repeated service disruptions, the Monetary Authority of Singapore (MAS) has imposed on DBS a six-month pause on all non-essential IT changes.

It has also barred the bank from acquiring new business ventures or reducing the size of its branch and ATM networks in Singapore during this period.

This comes after "repeated and prolonged disruptions of DBS’ banking services this year", MAS said in a Nov. 1, 2023, statement.

It added that the pause will ensure the bank keeps a "sharp focus on restoring the resilience of its digital banking services".

There was an outage involving DBS and POSB iBanking and ATM services on Oct. 14 and a subsequent outage of DBS's PayLah! service on Oct. 20.

On Oct. 20, MAS said that it would conduct an investigation and take "supervisory actions" in the wake of the Oct. 14 outage.

Shortcomings identified

In its statement, MAS said it had directed DBS to conduct a "comprehensive review" of its digital banking services in April 2023.

During the review, shortcomings were identified in several areas, including system resilience and incidence management.

While the bank had set out a roadmap to address its shortcomings, the changes involving system architecture design are "taking more time to complete", MAS said.

"In line with MAS’ expectations, DBS Bank will hold senior management accountable for the lapses, and the board will enhance its governance approach to oversee the implementation of the roadmap," it added.

Changes suspended, no new acquisitions

During the six-month period, DBS will not be able to make changes to its IT systems except for those related to security, regulatory compliance, and risk management.

MAS will also not approve any business acquisitions by the bank during that period.

"This is to ensure that the bank dedicates the needed resources and attention to strengthen its technology risk management systems and controls," it said.

However, DBS is not to reduce the size of its branch and ATM networks, MAS specified.

"This is to ensure there are adequate alternative channels for its customers in the event of further disruptions while the bank works to enhance the operational resilience of its digital channels," it said.

"This direction will be in force until MAS is satisfied with the progress of DBS Bank’s remediation plan."

More disruptions may occur

MAS also noted that it will take up to 24 months for DBS to implement "the planned structural changes".

Disruptions may still occur in the interim, MAS said.

"In such situations, MAS expects DBS Bank to promptly recover its services and communicate to its customers in a clear and timely manner," it said.

Statement from DBS

In a statement published the same day, DBS apologised for the disruptions and said it is addressing the issues "with utmost priority".

"When customers bank with us, they expect to be able to access our banking services conveniently, and at any time of the day. With the incidents of the past year, we have failed to live up to these expectations, and have also fallen short of our own standards," said DBS chairman Peter Seah.

"As an acknowledgement that the bank could have done better, senior management will be held accountable, and this will be reflected in their compensation."

He added that the bank has been making "every effort possible" to strengthen its resilience and ability to recover its services promptly.

"This is a work in progress, and we seek customers’ patience as we work through our remedial actions," he said.

DBS CEO Piyush Gupta also apologised and said that the bank will be setting aside a special budget of S$80 million to enhance system resiliency.

Top image via Google Maps and DBS