DBS may take 24 months to implement structural changes for digital banking services
The Monetary Authority of Singapore (MAS) has taken a stringent stance against DBS, Singapore’s largest lender, following a series of service disruptions throughout this year.
The banking institution has been barred from pursuing any new business ventures for a duration of six months, alongside additional mandates in response to its multiple service disruptions.
In a media release on 1 November, MAS revealed its directives. DBS is mandated to halt any new acquisitions and non-essential IT alterations for six months to focus on strengthening its technology risk management systems and controls.
Furthermore, the bank is prohibited from reducing the size of its branch and ATM networks in Singapore during this period to ensure adequate alternative channels for customers in case of further disruptions.
“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,” stated MAS.
“This direction will be in force until MAS is satisfied with the progress of DBS Bank’s remediation plan.”
This approach follows the recent disturbance on 14 October, where DBS and Citibank faced hours-long digital banking and payment service disruptions due to a technical issue at an Equinox-operated data centre.
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