In western Japan, around 128 shinkin banks, or credit cooperatives, faced a major technical failure on November 6, disrupting banking operations. The failure temporarily brought ATM transactions, branch services and internet banking to a halt, affecting approximately 3,430 branches and leaving customers unable to access several essential banking services.
System Failure Disrupts Banking Operations
The disruption began at around 1.30 pm, following a communications breakdown and equipment malfunction at the West Japan Centre, which manages shared banking infrastructure through the Shinkin Central Bank and Shinkin Kyodo Center.
The failure affected the Shinkin Joint System, a common platform used by regional financial institutions to process banking transactions, as per CNBC.
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ATMs, Branch Transactions and Online Banking Affected
The outage disrupted ATM cash withdrawals and deposits, over-the-counter branch transactions and internet banking facilities. The failure created difficulties for individuals and businesses relying on regional credit cooperatives for routine financial activities, including cash withdrawals, payments and fund transfers.
Disruption Limited to Western Japan
The disruption was concentrated in financial institutions operating west of the Tokai region, covering areas across Hokuriku, Kinki, Chugoku, Shikoku and Kyushu. Shinkin banks in eastern Japan continued operating normally, indicating that the disruption was not a nationwide banking outage.
Several regional lenders, including Okazaki Shinkin Bank, Osaka City Shinkin Bank and Hiroshima Shinkin Bank, were among the institutions affected.
Equipment Malfunction, Not Cyberattack
Initial investigations revealed that a technical equipment malfunction and communications failure were the likely causes. Authorities clarified that the incident was not triggered by a cyberattack, hacking attempt or unauthorised external access.
The findings pointed towards an infrastructure-related problem within the shared banking network.
Banking Services Restored Within Hours
Banking services were gradually restored later that evening. According to reports, all affected ATM services had resumed normal operations by approximately 7.05 pm on November 6, around five-and-a-half hours after the initial disruption.
The incident has raised concerns about how a failure at a central operating facility can disrupt essential services across hundreds of branches simultaneously.
