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Jakarta Post

Mandiri told to prioritize customers’ interests after IT error

  • News Desk

    The Jakarta Post

Jakarta   /   Mon, July 22, 2019   /   11:20 am
Mandiri told to prioritize customers’ interests after IT error The Financial Services Authority (OJK) logo at its headquarters in Jakarta. (kontan.co.id/File)

The Financial Service Authority (OJK) has called on state-owned lender Bank Mandiri to prioritize the interests of its customers in carrying out mitigation following a failure of the bank's information technology (IT) system that changed the data of its customers.

“Banks have to have and apply good operational standards if there is system problem, by prioritizing the protection of customer rights,” said OJK in a press statement on Sunday.

On Sunday morning, many customers of state-owned lender Bank Mandiri were complaining about transaction failures after attempting to use ATMs.

Many said they found more funds in their accounts, but others said they found less. Currently the bank is blocking the accounts of 2,670 of its customers who overdrew funds during the computer system failure.

The OJK demanded Bank Mandiri immediately report to the authority what really happened in its system, as well as its efforts to mitigate the problem to ensure that such an incident would never happen again.

The authority said it appreciated the bank’s effort to immediately mitigate the system error and guaranteeing that no customers would be negatively affected by the incident. 

It also called on the banking industry to continuously review its IT systems to ensure that banks are prudent when taking management risks. “The banking Industry should pay attention to what happened [in Bank Mandiri] as it is important,” the OJK added.

Bank Mandiri corporate secretary Rohan Hafas said the failures occurred because maintenance of the system had not taken place smoothly. He explained that the data became corrupted, altering the accounts of about 1.5 million people, 10 percent of the bank's customers. (bbn)