System Glitch Disrupts Money Transfers at 11 Major Japanese Banks; Resumption Expected
A technical issue with Japan’s Zengin interbank data communication system has resulted in the inability of customers from 11 banks to transfer money to other banks. The glitch, which occurred on Tuesday, is expected to be resolved by Wednesday, according to Zengin-Net, the operator of the system.
Approximately 1.4 million money transfer orders accepted since 8:30 a.m. on Tuesday have been affected by the malfunction, as reported by Zengin-Net. To mitigate the impact, the organization has successfully processed one million of these orders using a backup method and plans to address the remaining transactions on Wednesday.
The 11 banks affected by this issue are MUFG Bank, Resona Bank, Saitama Resona Bank, Kansai Mirai Bank, Yamaguchi Bank, Kitakyushu Bank, Mitsubishi UFJ Trust and Banking Corp., Custody Bank of Japan, JPMorgan Chase Bank, Momiji Bank, and Shoko Chukin Bank.
Notably, this incident represents the first time since its launch in 1973 that the Zengin system has experienced such a glitch affecting retail customers. The problem is believed to have originated from update work on a relay computer program conducted between Saturday and Monday.
In addition to hindering money transfers between different banks, some users have encountered difficulties while trying to transfer funds to accounts within the aforementioned 11 banks from accounts held at other financial institutions. However, the glitch has not affected intrabank money transfers, as stated by the 11 banks.
Coincidentally, Japan Post Bank also faced a system glitch on Tuesday, rendering its online services, including balance inquiries and transfers via its mobile app, temporarily unavailable from around 8 a.m. In the afternoon, the bank managed to restore its Yucho Direct online banking and Yucho Pay smartphone payment app services, with ongoing efforts to resume services offered by the Yucho Bankbook app.
As Zengin-Net continues working towards restoring the impacted money transfer services, customers are advised to exercise patience while the issue is being addressed. This incident serves as a stark reminder of the potential vulnerabilities within complex financial systems and highlights the need for robust cybersecurity measures to prevent such disruptions in the future.
In conclusion, the system glitch that has affected money transfers at 11 Japanese banks has caused inconvenience for customers, but efforts are underway to resolve the issue. With the restoration of services expected soon, it is crucial for financial institutions to learn from this incident and prioritize the security and reliability of their systems to ensure smooth and uninterrupted operations for their customers.
