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.
This is the end of dial-up access to RBS data for corporates. Right?
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.
Basic £130-140K OTE £250K (no ceiling)London based and across EMEA
© Finextra Research 2014