Since 2012, RBS has invested £750m in technology. This follows a €56m fine by the Financial Conduct Authority and the Prudential Regulation Authority (PRA) after a huge IT glitch in 2012. During this time 12 million accounts were frozen and customers of RBS, Natwest and Ulster Bank were unable to access their accounts due to manual processes.
But the troubles didn’t stop there…
In September, RBS and NatWest customers were hugely inconvenienced after they were unable to withdraw cash or use their card in branches.
July saw customers being locked out of their online bank accounts for nearly an hour, which RBS blamed on a cyber-attack. Very often banks can withstand this kind of threat. However, this time, the online banking service went down for 6 minutes and took a further 45 minutes to fix properly.
In June many RBS customers were left without funds over a weekend after 600,000 transactions were delayed for several days.
The problem is largely that bank’s IT systems have been building up over years, often in silo for different purposes and different places. It quickly becomes outdated. Now, people bank in very different ways. Research by the British Bankers’ Association shows that more people bank via apps than internet banking and in branch yet the IT systems used are not up for the job.
Tracey McDermott, director of enforcement and financial crime at the Financial Conduct Authority said “Modern banking depends on effective, reliable and resilient IT systems,”
Banks are risking losing customers by neglecting IT practices. ‘Challenger’ banks such as Tesco, Virgin, Aldermore, OneSavings, Shawbrook all with strong IT offerings and more reliable services.
So what should banks do?
They need to streamline processes and automate wherever possible. By automating manual checks, banks can eliminate human error and fix problems faster.
But there should also be more emphasis on resilience as opposed to faster recovery. So that banks can stand strong when incidents happen. A resiliency plan is crucial to any company, across any industry regardless of sector. A plan should concentrate on both the business and IT processes that are most vital to the enterprise.
Applications and their development need to be a part of that resiliency plan. In today’s marketplace, it’s a requirement that organisations should be able to constantly provide reliable information to people both inside and outside the enterprise. With this said disparate data and application sources are a requirement. Rather than being aligned only with technology, data and applications are now tightly linked with business processes and organization.
Measures such as determining the tolerance level of key applications to infrastructure failures and possibly diversifying data and applications, must be done to help ensure a resilient enterprise.
Opportunities for streamlining applications and simplifying data and application architectures through standardization should also be explored. Technology plays an essential role in building a resilient, flexible business. Since a significant portion of most business budgets is used for building the IT infrastructure, it is prudent to align these investments with the enterprise’s resiliency objectives. Organisations cannot underestimate the value of automation and standardization as a direct lower risk operations. Automation means lower risk operations.
At ANS we recognise automation equals reduced operational risk and increased operational efficiency which is why we developed RAPID Private Cloud. With RAPID Private Cloud you can be assured that your digital services can be developed, procured and hosted quickly and securely. RAPID Private Cloud allows you to reduce operational risk and create operational efficiency.
RAPID Private Cloud enables IT teams to shift resources from the tactical to the strategic to deliver greater business agility and enable real IT transformation.
Our automated service reduces operational risk whilst creating operation efficiency. This results in faster application deployment, higher availability, and lower total cost of ownership. With RAPID Cloud you can be assured that your digital services can be developed, procured and hosted quickly and securely. You can focus your valuable IT resources elsewhere, as RAPID is built on the principles that everything is automated, virtualised, standardised, and optimised prior to arriving at customer site.
Want to learn more about RAPID Private Cloud or RAPID Converged Infrastructure from ANS? Visit www.ans.co.uk today.
Agree or disagree with my thoughts? I’d like to know! Share you’re views below.
An insight from Robin Lee, Sales Manager, ANS.
Posted by Robin Lee