Multiple Online Banking Systems Go Down in Britain

Payment chaos: For bottom-line-obsessed bank executives, IT systems are an expense to be slashed. The results are in. …

RBS, the largely state-owned lender that has cost British taxpayers almost a hundred billion pounds in bailouts, losses, fines and legal fees, also has a rich history of outages, including a major blackout in 2012 that lasted for over a week, disrupting customers’ wages, payments and other transactions. The outage was allegedly caused by an “inexperienced” RBS tech operative’s blunder. For the duration of the blackout, the only means many customers had of accessing basic banking services was to visit the local branch.

That, however, didn’t stop RBS from embarking on a branch closure rampage, blaming the growth of internet banking for its decision to close one in four of its branches. Now, it can’t manage to keep those web-based services up and running, leaving customers even worse off. Even as the lender has increasingly digitized its services, it has consistently downsized its IT services team. In 2017 it revealed that it planned to axe 900 IT jobs by 2020 and is doubling down on its outsourcing of IT roles to India to reduce costs.

Multiple Online Banking Systems Go Down in Britain Wolf Street

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