Impact of the failure on DBS Bank’s reputation, credibility likely limited, say experts, Tech News News & Top Stories – World Wide

SINGAPORE – Due to the longer interruption of his services this week, However, the impact is likely to be limited, experts and observers said on Thursday (November 25).

However, they added that banks in general need to implement more safety nets to improve reliability, especially given the increasing use of technology and reliance on digital infrastructure in the financial sector.

Problems with the DBS website and mobile app prevented customers from accessing banking services for about two days from Tuesday.

While the bank said its services returned to normal on Wednesday night, some customers continued to report problems on Thursday.

On Thursday, DBS advised those still having problems restarting their devices and clearing their browser cache before trying to log in again.

Associate Professor Anand Srinivasan, who heads the finance department of the National University of Singapore (NUS) Business School, noted that DBS was recently named the best bank in the world from UK publication Euromoney for the fourth consecutive year.

He said the award was based on many factors, particularly the security and soundness of the lending business and customer deposits.

In that regard, DBS “continues to shine” and the recent outage is likely to have minimal impact on its global reputation, he added.

Aurobindo Ghosh, assistant professor of finance at the Lee Kong Chian School of Business at Singapore Management University, said the disruption was “very worrying” but should be seen in the context of the bank’s digital transformation as a whole.

He said DBS deserved the awards it received for having been “at the forefront of digital transformation” in Singapore’s financial services sector over the past decade, bringing many new and innovative digital financial products to the market.

“Singaporeans are used to high levels of service. As an international bank, the image and reputation of DBS as the most important and sometimes the only point of contact could be damaged. “

Prof. Ghosh said there is a significant proportion of Singaporeans who are underserved – meaning they do not have full access to mainstream financial services – and are unsure about adopting digital financial products.

“Disruptions stick with those who were reluctant to begin with, so DBS must try to win back those customers, not lose the customers they already have,” he added.

Experts from cyber protection company Acronis said the malfunction could be due to human error in a routine process such as maintenance or system updates.

DBS country manager for Singapore, Shee Tse Koon, said on Wednesday that there was a problem with the bank’s access control servers, but did not go into details.

On Thursday night, DBS said its systems were secure and not the target of a cyber attack.

Access control servers handle both registration and payment verification using means such as biometrics, authentication tokens and one-time passwords.

Kevin Reed, Acronis’ chief information security officer, said authentication is one of the core components of Internet banking and banks rarely outsource this critical function.

“DBS didn’t provide much information about what happened, and it might be because they still don’t know exactly what the problem is,” he said.

“It’s hard to tell, but a system upgrade or external event could cause significant authentication platform overload and malfunction.”

Feixiang He, research director for adversary intelligence at cyber security firm Group-IB, said modern financial systems are very complex and it could be implausible or impossible for banks to build everything in-house.

The increasing complexity of financial systems goes hand in hand with greater risks of cyber attacks and interruptions in the supply chain, he noted.

This poses challenges not only to cybersecurity, but also to managing system changes and the reliability of engineering sites.

“Such delicate ecosystems require close partnerships between different organizations in order to maintain the basic principles of confidentiality, integrity and availability,” said He.

Disruptions can occur when changes are made to the system configuration or new software is introduced, he said. In such cases, the establishment of suitable backup and rollback mechanisms can help companies to restore quickly.

Prof. Srinivasan said that technical glitches often arise from outside the organization and only become problematic when a pattern repeats itself.

“I believe that the real benefit of technology in banking for customers is not determined by large system-wide failures, but rather in its reliability for day-to-day use.

“In this dimension, like most other banks in Singapore, DBS does well,” he added.

Reference-www.nach-welt.com

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