Payday problem for Absa internet clients

ABSA, SA’S largest retail bank, experienced a technical glitch on its online banking platform on Friday, leaving thousands of clients who had received their monthly pay earlier in the day unable to make transactions.

The glitch reveals the potential threat to online banking systems as the big banks push for greater usage of this service in a bid to save costs and reduce foot traffic at branches.

Absa urged customers to use branches and automated teller machines during the downtime period. Its system engineers had to grapple with the problem for almost the whole of Friday. The mobile and internet banking channels systems were partially fixed by late afternoon and fully restored just before 6pm.

“Absa experienced a technical issue on Friday morning which had the potential to slow or stop customers accessing internet and mobile banking platforms,” a spokesman said. “We are aware it is month-end and that a lot of people want to transact.”

The bank had to extend its cut-off time for making payments online until 6pm on Friday.

Absa apologised for any inconvenience but by yesterday afternoon it had not revealed what had caused the fault.

“We should have more clarity on Monday,” the bank’s spokesman said yesterday.

The collapse of Absa’s online banking system comes barely two months after rival First National Bank (FNB) experienced a serious systems breakdown.

In March, FNB said an electricity spike had affected its main production and back-up system. However, City Power, the Johannesburg electricity utility, denied it had caused the failure.