Commonwealth Bank, the country’s largest financial institution, is investigating the cause of a significant outage that left millions without access to ATMs, online banking and payment services. The disruption occurred between approximately 11:30am and 2:30pm AEST on Thursday. Its timing drew attention due to its overlap with the RBA's warning about growing risks linked to the increasing complexity of banks' digital systems.
The bank, which serves one in three Australians and supports nearly 13 million daily app sessions, experienced a nationwide blackout. The outage left customers stranded during the busy lunchtime period, unable to use essential banking services. Services were back online by mid-afternoon, though the root cause is still under investigation. Initial findings point to a data processing issue, following the bank’s transition to a new cloud-based system.
Monitoring platforms reported more than 7,000 user complaints at the outage's peak, showing how heavily people rely on uninterrupted digital banking. For many, the incident highlighted uncertainty surrounding a cashless system. Supporters of physical currency used the event to emphasise the importance of keeping cash as a backup, especially as banks increasingly encourage digital use.
The disruption came just hours after the RBA released its Financial Stability Review. The report warned that although financial technology creates benefits, it also brings greater exposure to risks such as service outages and data breaches, particularly as banks adopt more third-party technology providers. The review did not mention specific institutions, but its timing underscored growing concerns about the strength of digital banking infrastructure.
The incident raises wider concerns about how resilient banks' systems are to unexpected failures. Beginning mid-2025, banks will be subject to new operational risk rules requiring tighter control over critical suppliers. As digital platforms grow further, finding the right balance between innovation and system reliability will be essential for both financial firms and regulators.
