Getting the technology right

In the wake of the IT meltdown at the RBS group on 19 June during routine maintenance of the RBS computer system,  the Treasury Select Committee is calling on banks to check their IT systems.
The error caused automated batch processing software to malfunction and although this was quickly fixed, the bank was left with a backlog of data to process. Many RBS, NatWest and Ulster Bank customers found that their account balances had failed to update and some customers were unable to access funds, including wages, while payments failed to go through. RBS and NatWest customers experienced difficulties for around two weeks, while the problems took even longer to be resolved at Ulster Bank.

Every bank should be checking its IT systems. The whole system needs to have confidence that such a failure cannot happen again. RBS has launched an investigation into the problems and will look at risk management, contingency planning and the impact of cost-saving measures.

RBS has set aside £125m to compensate customers for the problems they experienced as a result of the meltdown.  Ulster Bank has said all customers who visited the bank between 19 June and 18 July and made a transaction will receive £20 to compensate them and is also refunding charges placed on people’s accounts in error and will reimburse “reasonable out-of-pocket expenses” incurred by its customers as a result of the disruption.

Independent Financial Advisors Enable of Bishop’s Stortford are glad to see government requiring action getting the technology right is vital in banking.