Britain’s Banks Need IT Investment Now To Prevent Technology Failures Says Top Lawmaker
The high profile technology failures of UK retail banks in recent years have prompted senior UK lawmaker Andrew Tyrie to call for the banks to make themselves more resilient by investing in IT now.
Mr Tyrie who is the chairman of parliament's Treasury Committee has been reported as saying that a succession of bank IT blunders and weaknesses have been responsible for causing businesses to suffer, and exposing millions of people to uncertainty, distress, disruption and major inconvenience.
The succession of IT blunders that have prompted the recommendations make depressing reading, and the sheer number and frequency appear to make s strong case for IT investment now. The high profile banking IT blunders of recent years include:
No-one Directly Responsible
In a letter to Andrew Bailey, the deputy governor of the Bank of England Mr Tyrie said that one of the main reasons why the blunders keep happening is that “Currently, no one group seems to be directly responsible for developing a full understanding of the risks carried”.
IT Improvements Promised - Some Good News For Business
Some good news for business so far is that state-backed Royal Bank of Scotland has promised to invest 150 million pounds a year to improve the resilience of its computer systems. Its Chief Administration Officer Simon McNamara pointed out however that "It is not feasible to have 100 % faultless systems.