'Shouldn’t happen so often’: DBS outage inconveniences some customers, upsets others

SINGAPORE: When his PayNow transaction for S$1,500 (US$1,130) at a clothing shop didn't go through on Wednesday afternoon (Mar 29), Mr Shankar Rajan thought nothing of it.

He tried again, and again; after several failed transactions, the 73-year-old began to worry that he had been scammed.

As he continued to attempt the money transfer, a message came from DBS, notifying customers that its digital services were facing some difficulties, and to contact the bank later to make their transactions. 

“I was satisfied that it was not my problem and (I wouldn’t be) losing money," Mr Rajan told CNA on Thursday.

"When they said ‘later’, I presumed it would be half an hour or one hour ... But I kept trying a few times, and every time I got the same message that they’re undergoing difficulties.” 

Feeling apologetic about holding up the clothing store, he decided to call his DBS outlet at Junction 8 mall to check on the situation. But nobody answered the phone.

Mr Rajan called the mall’s management instead, and a customer service officer picked up. She told him to be patient and reassured him that all DBS customers were at the time unable to make transactions - including herself. 

“It’s very embarrassing ... But the shopkeeper was understanding. I showed him the message that said it’s the bank’s problem, and he said ‘Never mind, you can go off, you can even pay me tomorrow',” he said. 

Mr Rajan would keep trying to make the transfer every half an hour, before finally succeeding at about 6pm. 

“I didn’t want to make a hoo-ha … Mistakes happen, but unfortunately there was one incident also about 16 months ago, where I also got caught in it while withdrawing money,” he said, adding that at the time, he had to head down to the bank in person. 

“It shouldn’t happen so often. I don’t think they’ve even come up with any explanation, up to now, as to what happened, and how they solved it.” 

Mr Rajan called for an apology from DBS chief executive officer Piyush Gupta. He said the bank would likely lose customers if it did not compensate those who suffered losses in Wednesday’s outage. 

“The bank’s reaction so far is something that I’m not very happy with,” he continued. 

“What happen(ed) to people who really couldn’t do their transactions and got into trouble, or payments are late and late fees are charged Will the bank compensate us?” 

As a DBS customer “from day one”, Mr Rajan even took out his housing loan with the bank. He said he intended to open an account with another bank, to avoid similar problems in future.

“I have some special feelings for (DBS)," he added. "But I think that it’s a very bad thing that happened."

On Wednesday, DBS customers were unable to log in to its online banking platforms such as the PayLah! mobile wallet, with reports of service outages beginning to surge at about 8.30am, according to the website Downdetector.

The bank later said that as of 5.45pm, its digital services – digibank Mobile and Online, PayLah! and mTrading – had returned to normal.

The outage was DBS' second in 16 months: The previous incident in November 2021 lasted two days and was deemed a "serious disruption" by the Monetary Authority of Singapore (MAS).

On Wednesday evening, the regulator also issued a strongly-worded statement, calling the latest disruption "unacceptable".

Mr Gupta said in a late-night statement that the bank was "disappointed" that the disruption occurred.

"We hold ourselves to higher standards and it is our utmost priority to review the events of today," he said.

"We acknowledge the gravity of the situation, appreciate our customers' understanding and deeply regret the inconvenience caused."

WAITING IT OUT

Other DBS customers CNA spoke to, such as Mr Cedric Wceke, described the inconvenience from the outage as “minor”.

Mr Wceke, who works in public relations, said he faced issues with digital banking throughout the day, and could not make transfers via PayNow to colleagues for lunch or to pay his season parking fees.

Marketing manager Jonathan Lee said he was unable to top up his Wise account via PayNow.

"The other option was to top up via my bank account, but I didn't set that up ahead of time so ... I decided to wait it out till after working hours," he told CNA.

Mr Lee eventually managed to make a S$2,500 transaction when service was restored, but the wait meant that the products he wanted to buy and ship to Singapore would be delayed by a day.

"(There were) no major implications since the downtime was fixed by dinner," he said. "But I think if it wasn't resolved before going to bed, (I) might not have been able to sleep well."

The disruption also led to Mr Lee, who was attending reservist training, using cash for purchases in the army canteen.

"A lot of us use PayLah! to pay (at) the canteen and there is no ATM in camp so there was a small commotion," he recalled. "It was more concerning for the aunties and uncles because payment is usually made after preparation (of food)."

IMPACT ON CONSUMER CONFIDENCE

DBS' latest disruption may cause some users to switch to other banks - particularly if they perceive the outage as an indication of ongoing reliability issues, said Assistant Professor Ruan Tianyue from the National University of Singapore’s business school.

She added that how DBS improves "system resilience" and transparency in its communications will play a significant role in retaining customers.

As for people already hesitant to adopt digital banking to begin with, the key is to maintain high levels of security and to keep improving both the convenience and capacity of the services, said Asst Prof Ruan.

“While incidents like this may temporarily hinder Singapore's move towards a cashless society, they also highlight the need for continuous improvements in the country's digital infrastructure," the finance and risk expert observed.

“As the adoption of digital banking and payment services increases, providers should invest in expanding their service capacities and enhancing system resilience to ensure a smooth and reliable user experience.”

Associate Professor Deng Xin with the Nanyang Technological University's business school said DBS should communicate promptly and transparently with customers about the nature of the problem and the steps taken to address it. 

"The first step of communication is the most pressing. In the 12-hour duration of the service disruption, numerous affected customers attempted to contact the bank to obtain information about the situation," she said. 

"Despite DBS issuing a few statements acknowledging the unavailability of digital services and guaranteeing the security and integrity of its systems, customers who were unable to reach the customer hotline and did not follow the social media where the statements were posted experienced distress and frustration." 

To rebuild trust in the long run, the bank should also provide regular updates on its efforts to improve its IT system and management process, said Assoc Prof Deng. 

DBS must set protocols for prompt and proactive communication during outages to restore and preserve customer trust, she added. 

Mr Wceke, like Mr Rajan, said he had expected better from the bank.

“It dampened my confidence a little, and as an end consumer, I do have options in the other local banks, which I’m happy to explore deeper in terms of credit card offerings and also investment growth products,” said Mr Wceke.

Mr Lee, the marketing manager, said the incident had not shaken his confidence in the bank.

"Since it's DBS, MAS would have placed a tonne of regulations on them that would protect our funds. However, I also think it's also untimely this happened given everything going on in the US with SVB (Sillicon Valley Bank) and the other banks going down."

Another DBS customer, Mr Tay Hao Ran, said the outage had “adversely" affected his perception of the bank.

But he said he would continue to use the bank’s services, and make use of its offerings - notably a promotion where PayLah! users can get up to S$3 off their meals at selected hawker stalls on Fridays.

"I've been taking advantage of it for the last few weeks, and tomorrow I will still try to use it," said Mr Tay, who on Wednesday switched to cash after he unsuccessfully tried to make digital payment at a coffee shop during lunchtime.

“At the root of it, I would imagine that most users are practical."

He said he would continue to go cashless as usual, rather than "intentionally carry more cash to guard against bank service outages".

"A lot of places have contactless payment now, and DBS isn't the only bank or financial institution that offers contactless payment."