I have heard now from several of my old banking sources that yesterday Westpac had a severe issue with its processing, particularly with Internet and Telephone Banking systems, these would include presumably their Front-End Processors (tech term, look it up) for the ATM network.
My sources tell me that the Governments own banker is facing a second day of being out of balance and that many internet processed payments simply failed to be processed last night and that balances of customer accounts are showing yesterdays balance.
Today being Thursday will pose a huge problem for Westpac as a vast number of benefit payments go through on Thursday as do company wage runs.
The other problem Westpac has is that they will be in breach of the law by not balancing and by not balancing it is likely that other banks aren’t balancing wither with Westpac and the Reserve Bank.
Trying to confirm through other tech sources and will keep you updated.
UPDATE: Westpac spinning like a top, but are telling other banks that they will cover them, based on pro-rata balances oulled from their arse based on normal Wednesday/December data-flows. Right now I think Westpac is probably in breach of its banking covenants with the Reserve Bank and the NZ banking system is at risk as it is a house of inter-linked cards waiting to fall including settlement between payment providers for EFT-POS.
UPDATE 2: High probability that Westpac customers won’t be able to use other bank ATM’s as Westpac is unable to “stand-in” for offline transactions same goes for EFT-POS. Would Westpac please advise me via email [email protected] if they are experiencing problems.
UPDATE 3: Looking like a change management issue rather than hardware issue, so IBM and HP/Tandem will be breathing a sigh of relief. Seems it may be related to a change to apply interest rate changes on Tuesday night that sat in the system until something triggered a looping process at about 1pm yesterday afternoon black-holing their processors. Several roll-backs have failed. Westpac official line is the “Clark Defense”, Nothing to see here, move along.