18 December 2014

RBS preps £80 million IT overhaul - Telegraph

22 October 2012  |  8632 views  |  2 RBS Bank branch sign

After June's IT meltdown and last week's collapse of a deal to sell off branches to Santander, the Royal Bank of Scotland is preparing an £80 million overhaul of its mainframe computer systems, according to the Sunday Telegraph.

The bank's 15 mainframe systems - built up over a decade of acquisitions - will be upgraded and centralised to reduce complexity over the next 12 months under the watch of chief administration officer Ron Teerlink, says the paper, citing sources.

RBS and its NatWest and Ulster Bank subsidiaries suffered a disastrous IT outage over the summer which affected millions of customers and is costing the bank well over £100 million in compensation.

Last week Spanish banking giant Santander blamed IT integration costs and complications for its decision to pull out of its deal to buy 316 RBS branches. RBS chairman Philip Hampton claimed that IT challenges could "always be overcome" but the bank nevertheless now appears to recognise the need for an overhaul.

Meanwhile, the Nationwide Building Society is reported to be weighing up a bid for the branches, joining Virgin Money as a potential suitor.

Comments: (2)

A Finextra member | 22 October, 2012, 13:26

This is the end of dial-up access to RBS data for corporates.  Right?

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Derek Britton - Micro Focus - Newbury | 24 October, 2012, 16:02

Micro Focus welcomes banking sector decisions to invest for improvements of their core systems. Faced with adverse economic conditions, mounting IT Debt and increasing regulatory pressures, Financial Service organizations' IT divisions are under unprecedented pressure to deliver more with less, as they also seek to find ways to embrace new ‘disruptive’ technology as demanded by their customers. The time is now to make smart choices around IT innovation, and to exploit smart technology that allows them to reach new markets quickly, while retaining the tremendous value already being provided by their core IT systems.

 2 thumb ups! (Log in to thumb up)
Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

15 October, 2012
14 September, 2012
03 August, 2012
18 July, 2012
29 June, 2012
27 June, 2012

Related company news

 

Featured job

Find your next job