Aussie tech banking curse strikes Westpac

Australia's Westpac has been forced to apologise to customers after an air-conditioning fault at a data centre hit the bank's online service and shut down ATM and Eftpos facilities across the country.

  0 2 comments

Aussie tech banking curse strikes Westpac

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The fault is the latest in a series of banking outages to have struck the nation's biggest banks as they rip out legacy technology and migrate to more modern core banking systems.

In a statement, Westpac group executive retail and business banking Rob Coombe says: "Westpac sincerely apologises to all our customers who have been impacted by today's outage. We take systems reliability extremely seriously and are very disappointed by the inconvenience to our customers and will undertake a thorough review."

He says the bank has now revived ATM and Eftpos services and is working to restore full functionality to online banking.

Westpac recently extended an infrastructure outsourcing deal with IBM as part of an effort to mitigate the risks from a major upheaval as the bank implements a five-year IT transformation programme.

Other Australian banks to have suffered embarrassing tech failures in recent months include Commonwealth Bank and NAB, both of whom are undertaking extensive IT upgrade programmes.

In a presentation to analysts this morning NAB CEO Cameron Clyne, said the bank's customers could expects to see the first fruits of its $1 billion IT modernisation programme within the next six months.

He described the recent spate of outages as the result of a 40-year-old infrastructure that the bank is quickly trying to change.

"Outages and things are the result of an aging environment," he said. "We're fixing that, we're definitely on the path to fix it."

Sponsored [Webinar] Unifying Card Programmes: The cost-reduction imperative

Comments: (2)

A Finextra member 

Westpac was has been forced to shut down its ATM network because of an air conditioning unit that is obviously out of scope for support by IBM.

Rob Coombe may think that his bank takes the reliability of its IT infrastructure seriously but he didn’t get off his behind to buy a couple fans from Harvey Norman did he.  May be he did and may be his EFTpos card didn’t work for the purchase.

This bank has to win the amateur award for the week.

A Finextra member 

One would have thought that having a remote backup center for such business-critical applications like ATM and EFT/POS payments services was commonly accepted as "best practice" ...

[Webinar] Unifying Card Programmes: The cost-reduction imperativeFinextra Promoted[Webinar] Unifying Card Programmes: The cost-reduction imperative