Panic erupts as major bank faces widespread service disruption

Nothing tests your patience quite like standing at a checkout with a trolley full of groceries, only to discover your banking app has gone on an unscheduled break.

Thousands of Commonwealth Bank customers faced exactly that scenario yesterday during a sudden outage.

Reports of disrupted services left many Australians scrambling for alternatives.

The disruption unfolds

The disruption began just before midday on 2 October, with DownDetector tracking a peak of 7,114 complaints shortly after noon.

What started as isolated app troubles soon escalated into a nationwide digital banking blackout.

Customers found Commonwealth Bank's mobile app offline, while ATMs across the country entered 'standby mode', unable to dispense cash or accept deposits.

The human impact

For a generation reliant on digital banking, the outage highlighted the vulnerability of modern financial life.

Some customers faced particular challenges overseas, unable to access money in urgent situations.

Others discovered mismatched balances in joint accounts during the disruption, adding to the frustration.

Commonwealth Bank acknowledged the problem at 12:45 pm AEST, stating: 'CommBank banking services, including payments, online access and ATMs are being restored.'

The issue was not declared fully fixed until 2:30 pm AEST, stretching beyond the bank's initial estimates.

A spokesperson said: 'some of our services were unavailable for approximately an hour before they started being restored,' although customers experienced closer to two and a half hours of disruption.

Scale and context

The outage underscored the scale of Commonwealth Bank's operations, which serve over 17 million Australians.

Despite operational hiccups, the bank recorded a record net profit exceeding $10 billion in the 2024/25 financial year.

Shares in Commonwealth Bank actually rose 1.65 per cent on the day, suggesting investors viewed the outage as a temporary blip rather than a serious operational concern.

Digital banking outages are becoming increasingly common, highlighting the need for backup plans.

Fortunately, no branches were closed during the disruption, allowing some access to basic services in person.

However, with branch networks shrinking, over-the-counter banking may not always be available when digital systems fail.

Looking ahead

Industry experts suggested regulators may push for stricter service continuity standards, making digital reliability a key aspect of banking compliance.

Customers who experience direct financial harm from outages may be able to pursue compensation under consumer protection laws, although proving such harm can be difficult.

Yesterday's Commonwealth Bank outage served as a reminder that even the most convenient digital financial systems are not infallible.

While mobile banking has transformed how Australians manage money, traditional backup plans—keeping cash handy and knowing branch locations—remain essential.

If the recent Commonwealth Bank outage left you frustrated, you’re not alone—similar disruptions have happened before.

Understanding past incidents can help you prepare and avoid being caught off guard the next time digital banking systems fail.

Here’s a detailed look at another major banking lockout that caused widespread inconvenience and confusion.

Read more: Thousands of customers locked out of their banking accounts: 'How are they down so often?'

Have you ever been caught out by a banking outage—what strategies do you use when technology fails?