We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedTechnology

FSA may force banks to upgrade IT after RBS glitch

The City’s regulator is set to warn banks to update their IT

Article comments

The Financial Services Authority is to urge banks to upgrade their IT systems in light of the recent failure at Royal Bank of Scotland, which affected customers for more than a month.

The City regulator is awaiting details of what went wrong at RBS before it issues its warning, according to the Financial Times.

“It wants to make sure firms see off these kinds of problems,” said a person familiar with the regulator’s plans. “It has seen the impact on customers.”

Millions of RBS customers couldn’t gain access to funds in their bank accounts after a botched upgrade that was made to batch processing software CA 7 from CA Technologies.

It was revealed that it was RBS’ Edinburgh-based IT staff that were responsible for the systems failure, which contradicted earlier media reports that claimed a junior IT worker based in India had made the error.

Some customers of Ulster Bank, a subsidiary of RBS’ in Ireland, were still experiencing problems over a month after the failure occurred.

RBS, which is 82 percent owned by the government, is also expected to receive a fine by the FSA, which would be the first such case due to an IT failure. According to the FT, industry watchers expect the penalty to be in the tens of millions of pounds.

The RBS outage has bought into question many of the UK and Europe’s IT banking systems, where analysts argue that they are operating on creaking mainframes that are hindered by poor governance. Read Computerworld UK’s analysis of the ongoing debacle here.

Computerworld UK contacted the FSA for a statement but it had not responded at the time of publication.



FSA may force banks to upgrade IT after RBS glitch

What does your perfect datacentre look like?

What does your perfect datacentre look like?

The financial impact of rising energy bills is a headache for companies toomore ..

Glitch hits Virgin Media email distribution lists

Customers' personal information accidentally shared amongst the email chainmore ..

BBC tenders for £5.4m digital services contract

Digital services roster may be 'opened up' to new entrants at regular intervalsmore ..

Guardian, Washington Post win Pulitzer prize for NSA spying coverage

Both publications won the highly coveted Public Service awardmore ..

What UK business needs to do now with big data

In the final of a three-part series, we look at the potential for companies to become victims in the battle for big datamore ..

Ethical questions around big data

In the second of a three-part series, Pat Brans looks at the ethics of collecting 'big data'more ..

Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..

In Depth
What every company needs to do about big data?

What every company needs to do about big data?

In the first of a three part series, Pat Brans explores just how big 'big data' will get? more ..


* *