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RBS and Barclays asked to explain 'addition to litany of IT failures' RBS and Barclays asked to explain 'addition to litany of IT failures'
(3 months later)
The head of the powerful Treasury Committee, Nicky Morgan MP, is demanding answers from RBS and Barclays – and compensation for customers – after technical failures left millions of users locked out of their accounts.The head of the powerful Treasury Committee, Nicky Morgan MP, is demanding answers from RBS and Barclays – and compensation for customers – after technical failures left millions of users locked out of their accounts.
Royal Bank of Scotland, NatWest and Ulster Bank customers were unable to access online and mobile accounts between 5am and 10.30am on Friday morning, in the latest blow for confidence in Britain’s online banking infrastructure.Royal Bank of Scotland, NatWest and Ulster Bank customers were unable to access online and mobile accounts between 5am and 10.30am on Friday morning, in the latest blow for confidence in Britain’s online banking infrastructure.
It is understood that an upgrade to firewall software at RBS, designed to improve security for customers, backfired and left accountholders locked out of online banking and the mobile app.It is understood that an upgrade to firewall software at RBS, designed to improve security for customers, backfired and left accountholders locked out of online banking and the mobile app.
Barclays internet banking restored after technical problem
The service failure at RBS came only a day after some Barclays customers were left struggling to log into accounts for several hours because of a technical problem. The Co-operative Bank and Cashplus have also had to apologise for online disruptions in recent days, while memories remain fresh of TSB’s huge IT meltdown earlier this year.The service failure at RBS came only a day after some Barclays customers were left struggling to log into accounts for several hours because of a technical problem. The Co-operative Bank and Cashplus have also had to apologise for online disruptions in recent days, while memories remain fresh of TSB’s huge IT meltdown earlier this year.
Nicky Morgan has written to the RBS chief executive, Ross McEwan, and his Barclays counterpart, Jes Staley, asking for answers about the causes and consequences of the failure. She said: “This is yet another addition to the litany of failures of banking IT systems.Nicky Morgan has written to the RBS chief executive, Ross McEwan, and his Barclays counterpart, Jes Staley, asking for answers about the causes and consequences of the failure. She said: “This is yet another addition to the litany of failures of banking IT systems.
“It simply isn’t good enough to expose customers to IT failures, including delays in paying bills and an inability to access their own money. High street banks justify the closure of their branch networks on the basis that they are providing a seamless online and mobile phone banking service. These justifications carry little weight if their banking apps and websites cannot be relied upon.”“It simply isn’t good enough to expose customers to IT failures, including delays in paying bills and an inability to access their own money. High street banks justify the closure of their branch networks on the basis that they are providing a seamless online and mobile phone banking service. These justifications carry little weight if their banking apps and websites cannot be relied upon.”
Morgan also raised the issue of compensation for customers. In her letter to McEwan and Staley, she said: “What arrangements have you put in place to compensate customers who have lost out as a result of the failure? How in particular do you intend to deal with consequential loss claims from business customers?”Morgan also raised the issue of compensation for customers. In her letter to McEwan and Staley, she said: “What arrangements have you put in place to compensate customers who have lost out as a result of the failure? How in particular do you intend to deal with consequential loss claims from business customers?”
Angry customers took to Twitter as the RBS failure emerged, with one saying: “NatWest app down again. Not really acceptable for our 24-economy! How can we trust you with our money?”Angry customers took to Twitter as the RBS failure emerged, with one saying: “NatWest app down again. Not really acceptable for our 24-economy! How can we trust you with our money?”
An RBS spokesperson said: “We would like to apologise to customers who experienced issues logging into their online and mobile banking accounts this morning; this issue has now been resolved.”An RBS spokesperson said: “We would like to apologise to customers who experienced issues logging into their online and mobile banking accounts this morning; this issue has now been resolved.”
The latest outage at RBS will raise painful memories of the worst-ever service failure by a British bank, when a software update in 2012 at RBS resulted in millions of customers being locked out of their accounts, some for up to a month.The latest outage at RBS will raise painful memories of the worst-ever service failure by a British bank, when a software update in 2012 at RBS resulted in millions of customers being locked out of their accounts, some for up to a month.
Royal Bank of ScotlandRoyal Bank of Scotland
BankingBanking
Banks and building societiesBanks and building societies
BarclaysBarclays
Nicky MorganNicky Morgan
Consumer affairsConsumer affairs
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