Phoebus warns of software dangers
Paul Hunt, managing director of Phoebus Software, said: “The Financial Conduct Authority has launched an investigation into RBS and its colossal software systems meltdown last summer that may result in a multi-million pound fine.
“This is a prime example of the dangers lenders face when they rely on outmoded technology.”
The FCA confirmed yesterday that it had started an enforcement investigation into the failures which affected the bank’s customers in June and July 2012.
Hunt said: “Quite aside from the monetary cost of the fine, the scale of the reputational cost of this IT failure is staggering.
“Millions of customers were left without access to their funds. It proves that tempting as it is to pare back the IT spend, relying on out of date software is always a false economy.
“Harder to spot is that legacy systems like those used by RBS also consume time – as well as money and customer goodwill.
“The RBS software crisis should be a wakeup call for banks across the board, and they now have no option but to reassess their IT structures thoroughly.
“New technology frightens people. But those who welcome it can gain rich rewards.”
The FCA will did not specify a date for the conclusion of its investigation but did say that it will consider enforcement action it is complete.