MSE News: Banking outages to be investigated by the FCA 31 March 2014 at 12:12PM in Budgeting & bank accounts 8 replies 1.7K views

Former_MSE_Helen

"Major banks and building societies will be investigated by the FCA, following a number of high profile IT failures"

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Banking outages to be investigated by the FCA



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Herbalus

What if you can't access your cash?

Each bank has its own way of dealing with IT failures, but in the past customers have typically been reimbursed if they've incurred charges such as a late payment of a bill.

The best thing to do is to complain to your bank. If you don't hear a response or you receive an unsatisfactory answer you can take your complaint to the free Financial Ombudsman Service to look into (see our Financial Rights guide).

OR: the best way to be sure you won't be affected by future outages is to have more than one way of paying for your goods e.g. a back up a bank account with another institution, or a credit card.

A preventative measure seems a lot better to me than saying "it's ok, you can complain to your bank."

FireWyrm

One outage a year is bad-luck, old infrastructure, naughty Indian in datacentre pulling the wrong plug. Two outages from the same bank needs investigation. Three or more from different banks is starting to look like planned downtime in order to test a universal kill switch.

I suggest you all get cash handy for when they do finally lock it down and 'bail in' the banks.

Pincher

The lift doesn't work, fog closes airport, get used to it.

I really hate those idiots who are forever looking for ATMs just to take £10 out.

With most monthly payments, you can set up direct debits. If the DD doesn't go through, you can blame the bank.

If it's important, don't leave it till the last possible minute.

William_Barnes

So when will the FCA actually publish findings from failures in 2012

http://www.fca.org.uk/news/fca-investigation-of-royal-bank-of-scotland-rbs-it-failures

This new investigation is only likely to delay that even further.

zerog

Pincher wrote: »

I really hate those idiots who are forever looking for ATMs just to take £10 out.

Why? If I need cash, I either need £10 or £5000, and even I can't get the latter from an ATM unless I stand there at midnight with 7 or 8 different cards.

Billy-no-Money

Herbalus wrote: »

OR: the best way to be sure you won't be affected by future outages is to have more than one way of paying for your goods e.g. a back up a bank account with another institution, or a credit card.

A preventative measure seems a lot better to me than saying "it's ok, you can complain to your bank."

...is the right answer.

IT glitches will always happen, but most will be just a temporary interruption of service because of a piece of hardware breaking. Some might be data-related, but most of those are recoverable and limited in impact.

The only one that really worried me was the Natwest !!!!-up right at the core of the bank's systems, in its batch processing. This is 'legacy' IT, which has been running for decades and is reliable as long as there are people who understand it. Trouble is, many of those people are near retirement age or already gone; or their jobs off-shored.

IT risk management tends to concentrate on reliability of hardware but I think the big risks lie in unanticipated effects of change on old, poorly-documented systems. That's about people, not tin and wires.

Butterfly_Brain

I only use cash, I draw every penny out that is not needed for Direct debits and standing orders on payday. because I do not trust banks.

Pincher

Butterfly_Brain wrote: »

I only use cash, I draw every penny out that is not needed for Direct debits and standing orders on payday. because I do not trust banks.

Brilliant product idea: beds with built-in safe!

I see a huge market in student accommodations. The only time I ever had cash stolen was in student hall of residence. I went down the corridor to have a shower, forgot to lock my room, and the money in my drawer was gone.

I expect mattresses with a safe would be extremely uncomfortable, and a thieve with a Stanley blade can cut it out just like that.

Yale should really get into bed with IKEA, and produce a range of space efficient multi-function beds for the modern bijou apartment. So much space is wasted under the mattress, it makes me weep.

The mattress frame tilts up or lifts up, and you have access to anything you like down there. I should think a single bed would hinge on the side, which is the side against the wall. The deluxe version would be powered, so the lifting would be by electric motor, whereas the economy version would be spring assisted.

Sky's the limit, literally. I have a bedstead (£500 Christmas deal from MAKRO) where the TV rises from the footboard. It has a recess space on the side which is big enough for for a Sky set top box and a DVD player. Build the subwoofer under the mattress, rear speakers in the headboard, and you have 5 channel surround sound!

Do your internet surfing in bed, and you don't even need a desk.
A hanging closet for formal wear, a laundry basket, a shoe rack.
Put a multi-function microwave on a short fridge/freezer, and a bachelor has all he needs. Get a kettle if you must, but you can heat hot water with a microwave.

I would name the models with Japanese name to hint at the capsule hotel concept.