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The disruption to Revolut services caused by a Google Cloud failure on October 20 has drawn attention to the reliance of everyday banking on external technology providers and the challenges financial institutions face when essential digital systems become unavailable.
The outage affected customers in Cyprus and other European countries, with users reporting problems accessing accounts, making card payments, transferring money and withdrawing cash. Google attributed the disruption to a power-related incident affecting its London-based cloud infrastructure. Revolut said customers’ funds and data remained safe.
The incident demonstrated how a technical failure at a major supplier can interrupt several banking functions simultaneously, even when customers’ money has not been lost. For individuals, the consequences can include rejected payments or delayed transfers. Businesses may also encounter difficulties completing transactions when payment systems are unavailable.
An inaccessible banking app does not necessarily mean that an account has stopped operating. However, customers may temporarily be unable to use their usual banking services. Alternative payment methods and accounts with other providers can offer some protection, although this depends on the services available to each customer.
Backup arrangements need to withstand regional failures
Banks rely on interconnected technology, including their own data centres, cloud platforms and services supplied by external companies. A disruption affecting one component can prevent customers from accessing services without necessarily bringing down the bank’s core systems.
The Greek report that examined the incident describes the use of Microsoft Azure by Greece’s four systemic banks for selected functions. It also identifies the importance of geographically separated backup facilities, citing Haris Margaritis, Group Chief Operating Officer of Piraeus Bank.
Piraeus Bank and the National Bank of Greece are described in the report as using arrangements that distribute infrastructure across different countries, allowing certain affected operations to be transferred between regions.
These details concern Greek banking institutions and should not be taken as evidence of the specific cloud arrangements used by banks in Cyprus.
Geographic separation can reduce the risk of two backup facilities being affected by the same local failure. Separate data centres may still depend on shared electricity supplies, telecommunications networks or other infrastructure. A disruption affecting an entire cloud provider can present an additional challenge, requiring banks to establish whether alternative systems are available and whether critical operations can be transferred successfully.
The existence of backup facilities alone does not guarantee continuity. Banks also need to test their recovery procedures and establish how essential services will be maintained during an outage.
EU rules require banks to prepare for disruption
The European Union’s Digital Operational Resilience Act (DORA), which has applied since January 17, 2025, establishes requirements for financial institutions to manage information and communication technology risks, respond to incidents and test their operational resilience. It also establishes an oversight framework for technology providers designated as critical to the financial sector.
The European Central Bank’s supervisory priorities for 2026 to 2028 include a targeted assessment of selected banks’ preparedness for potential service disruptions involving major cloud providers. The exercise is intended to examine how institutions manage outsourcing risks and whether their contingency arrangements can withstand interruptions to critical services.
DORA does not prescribe one technical solution for every bank. Institutions must instead manage risks according to their circumstances, maintain appropriate continuity arrangements and address their dependence on external technology suppliers.
The need for such safeguards was demonstrated by the global IT disruption of July 2024, when a faulty update from US cybersecurity company CrowdStrike affected Windows systems worldwide. The incident disrupted services across several sectors, including financial institutions, where customers experienced difficulties accessing online banking, making payments and using ATMs.
The incident was not caused by a cloud outage or a cyberattack. It originated in a software update involving CrowdStrike’s Falcon Sensor security product. The European Banking Authority reported that most affected financial institutions restored their systems on the same day. The disruption nevertheless demonstrated how a failure involving an external technology supplier can affect multiple services at once.
Digital euro remains a project under development
Reducing dependence on external payment providers is also part of the debate surrounding the proposed digital euro.
The European Central Bank is preparing the digital euro as a digital form of public money intended to complement cash and existing private payment methods. The proposed system is designed to support online and offline payments, with the aim of providing a payment option available across the euro area.
However, the digital euro is not yet an operational service available to the public. The ECB says a decision on whether to issue it will depend on the adoption of the relevant European legislation. Preparations include a planned pilot beginning in the second half of 2027, with a potential first issuance in 2029, subject to the legislative process.
In Cyprus, the Central Bank of Cyprus announced in July 2026 that Bank of Cyprus and JCC Payment Systems had been selected to participate in the planned pilot.
The project could provide an additional payment option under European governance and help reduce reliance on some non-European payment providers. It would not, however, automatically eliminate the risks associated with technology failures. Its resilience would depend on the infrastructure and arrangements supporting the service.
The October outage has renewed attention to a central challenge for modern banking: ensuring that customers can continue to make payments and access essential services when a technology provider experiences a serious disruption.
