PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

System Malfunction Brings Japan’s Clearing System to an Abrupt Halt

By Connie Diaz De Teran
October 10, 2023
in Analysts Coverage, Credit, Debit, Merchant, Payments Modernization
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Japanese Banks' Clearing Network

Japanese Banks’ Payment Clearing Network experienced a disruption on Tuesday, impacting transfers at 11 Japanese banks.

What contributed to the glitch remains unknown, however the Japanese Bankers Association believes it could be tied to updates on a relay computer program that took effect between Saturday and Monday.

For the time being, the Clearing Network is turning to a back-up plan and ensuring that funds in “already- accepted orders” are forwarded to the appropriate destination accounts. According to the Japan Times, Japan’s Clearing Network wasn’t the only one that experienced a recent hiccup. Similarly on Tuesday, Japan Post Bank also succumbed to an outage that rendered online services—including banking inquiries and mobile app transfers—inoperable.

The Call for Modernization

This may be the first time the Japanese Banks’ Payment Clearing Network has experienced a glitch of this type since its inception in 1973. As payments become more digitized, bank legacy systems are failing to keep up with real-time payment solutions, resulting in outages, glitches, and disruptions. For those on the receiving end, the results include a massive disruption in payments, loss of revenue, and ultimately, a loss of trust in traditional banking systems.

JPMorgan Chase reported an outage in July that put a halt to all Zelle transactions. Zelle later posted on X, indicating that everything was functioning on their end, while Chase was having an “issue with payment processing.” Clearly, real-time payment networks that were designed for app-based systems are incompatible with the current banking system that was originally designed to process checks.

There’s no question that legacy systems are the current achilles heel of traditional banks, but not addressing this crucial issue stands in the way of banks delivering the best customer service and earning a higher profit margin.

The answer for banks looking to modernize their legacy systems is to adopt cloud-based systems and a low-code environment. Cloud-based systems offer more flexibility and scalability than data storage offered by the company. If more capacity is needed, the bank only needs to increase the capacity via the cloud, without tacking on any additional hardware.

A low-code environment enables users to create and customize applications using pre-built templates and drag-and-drop interfaces.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: Cloud TechnologyJapanJPMorgan ChaseLegacy SystemsPayments ModernizationZelle

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Rewire Acquires Imagen, Looking at Prepaid Cards for Migrant Workers

    Smells Like Team Spirit: What Makes Cobranded Credit Cards Work

    July 3, 2025
    uk banking outages

    New Continuous Strategies for Battling Account Takeovers

    July 2, 2025
    Fraud Monitoring

    What to Expect When Nacha’s Fraud Monitoring Rules Take Effect

    July 1, 2025
    payments

    Don’t Just React to What’s Next in Payments—Anticipate It

    June 30, 2025
    consumer debit

    As Payment Types Proliferate, Debit Cards Still Go Strong

    June 26, 2025
    Embedded Payments

    How Embedded Payments Is Optimizing the Expense Management Process

    June 25, 2025
    small business banks

    How Banks Can Bring Small Businesses Back to the Fold

    June 24, 2025
    Why Banks & Fintechs Can’t Ignore Digital Assets in 2025

    Digital Assets Deliver: How FIs Are Leading the Next Financial Era

    June 23, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result