Banking app outages spark calls for stricter testing before system upgrades

Dubai: Customers of local banks are calling for more rigorous testing of new banking systems and applications before they are launched, arguing that recurring technical outages and service disruptions can affect financial commitments, delay transactions and disrupt daily banking activities. The calls come as digital banking continues to grow, with customers increasingly relying on mobile applications and online platforms for money transfers, bill payments and other essential transactions. Concerns over service disruptions Customers said that while upgrading digital services is a positive step, new systems should undergo extensive testing under real operating conditions before being rolled out. They noted that any interruption, even for a limited period, can affect their interests, particularly during peak periods or when payments and financial obligations are due. Customers also stressed the need for banks to establish clear contingency plans to ensure the continuity of critical services. Suggested measures include providing alternative channels such as internet banking platforms, ATMs and call centres, while keeping customers informed about the progress of repairs and expected restoration times. They added that transparent communication during outages helps reduce confusion and anxiety, particularly when disruptions affect account access, card usage or fund transfers. Some customers noted that banks often rely on customer loyalty and trust during periods of disruption, but warned that prolonged outages could harm customer confidence and business continuity. Development remains necessary Banking expert Awatif Al-Harmoudi Banking expert Awatif Al-Harmoudi said banks typically undertake system upgrades only after careful assessment and consideration of their benefits, with customers usually informed in advance of planned changes. She said banks generally provide communication channels to address issues that may arise during implementation and keep customers updated on developments. "If banks notice that problems are increasing significantly after the launch of a new application, they should provide customers with a clear timeline for resolution," she said. Al-Harmoudi added that if disruptions are expected to continue for an extended period, banks should offer temporary alternatives from the outset to minimise the impact on customers. She also pointed out that international banks have previously experienced difficulties following major system upgrades. In some cases, lenders temporarily reverted to previous systems until technical issues were resolved. Reliability is key Asim Jalal, IT and management science consultant at G&K Asim Jalal, IT and management science consultant at G&K, said the success of digital banking services depends not only on introducing new features but also on maintaining stability, reliability and uninterrupted service. He noted that international best practices include conducting stress tests, simulating heavy user traffic and implementing robust business continuity and disaster recovery plans. "Investing in digital infrastructure readiness and emergency response plans has become essential with the increasing dependence on electronic banking channels," Jalal said. He added that swift problem resolution and the availability of effective alternatives strengthen customer confidence and improve the quality of digital banking services. Importance of backup systems Jalal explained that service interruptions can sometimes stem from problems with the cloud infrastructure hosting banking applications rather than the applications themselves. For this reason, he said banks should consider working with multiple cloud service providers, enabling them to switch operations if one provider experiences technical difficulties. Where issues originate within the application itself, Jalal recommended running extensive pilot tests while keeping the existing platform operational until the updated version has been fully validated. He stressed that a gradual and flexible transition to new banking systems is essential to ensure service continuity and minimise disruption for customers.