26 May 2017
Visit EBAday.com

UK banks a "long way" from improving antiquated IT systems - PRA director

09 January 2014  |  6324 views  |  2 Bank of england

The UK banking sector is a "long way away" from addressing deficiencies in "antiquated" IT systems, a senior Bank of England official has told a parliamentary inquiry.

Sam Woods, a director in the Prudential Regulation Authority (PRA), was giving evidence to the Northern Ireland Affairs Committee at Westminster.

Asked about a recent series of IT meltdowns at RBS/Ulster Bank, Woods said that an enforcement investigation into the issue was ongoing and that the failures at RBS had prompted the PRA to quiz other banks about their own infrastructures.

The probe revealed a number of unspecified "deficiencies", Woods told the Committee, adding that programmes to address the shortcomings were underway.

At RBS, says Woods, remedial measures introduced following a major breakdown in its systems in 2012 had helped the bank to recover from a recent serious outage in December which left customers unable to withdraw money from ATMs, pay at the point-of-sale or access online and mobile services on the busiest shopping day of the year.

At the time, RBS chief Ross McEwan admitted that the bank had failed to invest properly in its IT system for decades.

Woods told the Committee that although the deficiencies in bank IT infrastructures had been identified, many were using such "antiquated" systems that it would be years before the sector was back on-track.

"I feel we are a very long away from being able to sit here with confidence and say that the UK banks' IT systems are robust," he said.

Comments: (2)

Ludger William
Ludger William - Oney - Lille | 10 January, 2014, 10:24

Could this lack of investment be ROI's fault ?....CFO shouldn't take lead over CTO on such topics.

1 thumb up! 1 thumb up! (Log in to thumb up)
Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 10 January, 2014, 17:44

Unless vendors get their acts together, CTOs might not want to take the risk of putting their necks on the chopping block by taking the lead on such topics:

6 Reasons Why Banks Can't Transform Legacy Applications

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

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

Related stories

Quarter of Brits would consider leaving bank over IT meltdown - survey

Quarter of Brits would consider leaving bank over IT meltdown - survey

04 December 2013  |  5606 views  |  1 comments | 10 tweets | 7 linkedin
In wake of latest meltdown, RBS boss admits decades of IT neglect

In wake of latest meltdown, RBS boss admits decades of IT neglect

03 December 2013  |  8510 views  |  8 comments | 10 tweets | 5 linkedin
Co-op to slash jobs and branch network in £500 million IT overhaul

Co-op to slash jobs and branch network in £500 million IT overhaul

04 November 2013  |  5072 views  |  0 comments | 7 tweets | 1 linkedin
Co-op writes off £148 million in IT costs as losses widen

Co-op writes off £148 million in IT costs as losses widen

29 August 2013  |  7595 views  |  0 comments | 3 tweets | 5 linkedin
UK regulator begins probe into RBS IT disaster

UK regulator begins probe into RBS IT disaster

09 April 2013  |  7579 views  |  0 comments | 6 tweets | 2 linkedin
RBS to invest £700 million in retail operations

RBS to invest £700 million in retail operations

18 March 2013  |  7418 views  |  2 comments | 8 tweets | 5 linkedin
FSA fines Bank of Scotland over costly legacy computer lash-up

FSA fines Bank of Scotland over costly legacy computer lash-up

19 October 2012  |  5005 views  |  0 comments | 3 tweets | 1 linkedin
Lloyds Banking Group and Co-op customers hit by systems glitches

Lloyds Banking Group and Co-op customers hit by systems glitches

05 October 2012  |  8021 views  |  0 comments
In wake of RBS meltdown, MPs warn banks on IT systems

In wake of RBS meltdown, MPs warn banks on IT systems

04 September 2012  |  8852 views  |  3 comments
Regulators urged to act on creaking bank technology

Regulators urged to act on creaking bank technology

09 August 2012  |  10769 views  |  16 comments
RBS sets aside £125m to cover IT meltdown costs

RBS sets aside £125m to cover IT meltdown costs

03 August 2012  |  8217 views  |  0 comments
Lloyds to run IT for Co-op branch network

Lloyds to run IT for Co-op branch network

19 July 2012  |  5755 views  |  0 comments
RBS chief Hester waives bonus over IT meltdown

RBS chief Hester waives bonus over IT meltdown

29 June 2012  |  7173 views  |  1 comments
Hester stresses importance of technology in RBS rebuilding plan

Hester stresses importance of technology in RBS rebuilding plan

25 October 2010  |  10731 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.ebaday.comvisit www.response.ncr.comvisit vasco.com/news/PSD2-compliant-solutions

Top topics

Most viewed Most shared
BBVA launches Open API marketplaceBBVA launches Open API marketplace
10624 views comments | 47 tweets | 70 linkedin
Twins fool HSBC voice biometrics - BBCTwins fool HSBC voice biometrics - BBC
9276 views comments | 21 tweets | 24 linkedin
Bank/fintech collaboration can take transaction banking to new heightsBank/fintech collaboration can take transa...
7000 views comments | 12 tweets | 24 linkedin
Security experts struggle in search for WannaCry clues - ReutersSecurity experts struggle in search for Wa...
6307 views comments | 3 tweets | 3 linkedin
hands typing furiouslyPSD2 is fast approaching. Don’t bury your...
6152 views 1 | 5 tweets | 5 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job