We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
MPs demand action over rise in online bank crashes

Willing2Learn
Posts: 6,294 Forumite


Source: BBC
MPs have condemned the level of IT failures at banks, warning that financial levies on firms and more regulation may be needed.
A Treasury Committee report said the frequency of online banking crashes and customer disruption was "unacceptable".
The report, published on Monday, said with bank branches and cash machines closing, there was greater urgency to ensure online banking worked.
Major banks typically suffer more than 10 online outages a month.
Customers are being left "cashless and cut off", the report said. Firms could do much more to ensure their IT systems were resilient and to resolve complaints and compensation more quickly.
MPs have condemned the level of IT failures at banks, warning that financial levies on firms and more regulation may be needed.
A Treasury Committee report said the frequency of online banking crashes and customer disruption was "unacceptable".
The report, published on Monday, said with bank branches and cash machines closing, there was greater urgency to ensure online banking worked.
Major banks typically suffer more than 10 online outages a month.
Customers are being left "cashless and cut off", the report said. Firms could do much more to ensure their IT systems were resilient and to resolve complaints and compensation more quickly.
I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job

I love my job

0
Comments
-
The full report is at https://publications.parliament.uk/pa/cm201920/cmselect/cmtreasy/224/224.pdf but it does seem to be an exercise in stating the obvious and all smacks a bit of:
The banks are required to report incidents to the FCA, who collate and publish the data at https://www.fca.org.uk/data/mandated-voluntary-information-current-account-services#personal0 -
I find it hard to believe that "Major banks typically suffer more than 10 online outages a month". But then according to committee report "Many incidents experienced by firms are relatively minor, and often do not impact customers."
I have over a dozen current accounts and very rarely have any problems.I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job0 -
Willing2Learn wrote: »I find it hard to believe that "Major banks typically suffer more than 10 online outages a month". But then according to committee report "Many incidents experienced by firms are relatively minor, and often do not impact customers."
https://www.fca.org.uk/data/mandated-voluntary-information-current-account-services/interpreting-data explains the criteria for evaluating whether incidents are serious enough to be reportable to the FCA as 'major' (according to the PSD2 definition), so inevitably there will be plenty of others that don't meet this threshold, i.e. the bolded statements aren't inconsistent....0 -
Just wait until next April when the banks have got rid of all PSC contractors. It's going to be a disaster zone.0
-
If you didn't know better, you could think there's an election coming :rotfl:
Banker-bashing will go down well with many voters, so why not have this in your MP battle kit? It detracts nicely from real issues, such as Social Care, NHS waiting times, Housing, and the dreaded B word.0 -
I'm not being funny MPs but really it's about time you stopped acting like spoilt brats, sorted out the mess of a country you have created first and then start thinking about this when you've earnt some respect.0
-
One of the biggest issue in the last year...
Oh yea, it was the Visa problem.
Not anything any bank had control over. How they going to do anything about something like that?
Banks core systems need to be totally revamped, but look what happens when one does it... So all they will do is update the staff front end and customer face. But the real problem is the back end where so many systems are dating back to the last century.
Forget the costs involved. It is the time taken to replace the core system and test them that is the problem.
We see system updates on a regular basis. Yet each brings new issues with other systems. Mainly because cost cutting has seen all the old system experts got paid off and the new guys have not got a clue what their actions may or may not do, do to so many different systems interacting with each other.Life in the slow lane0 -
It would be interesting to see whether there is a correlation between the number of banks suffering with IT outages and the changes to online security that the regulators are enforcing.0
-
I'm going to take a contrarian position here and say that I agree. IT infrastructure is an area where the main banks can, and should, be doing much better. Let me put it this way: if airports used the outdated, creaking IT systems banks do, planes would be crashing into the ground or colliding midair on a daily basis. If hospitals used the same systems, people would be dying in droves. But in the case of banking... cheer up, it's "only" people's life savings and daily living costs at stake.
Yes, I understand that banking IT systems are based on very old, well-understood, industry-standardised technology and security is more important than slick functionality. But approaching the third decade of the 21st century, it it too much to ask that our systems be both secure AND work reliably? There is clear room for infrastructure improvement, and my guess is that because it's not considered particularly sexy by upper management, shareholders or customers, the can has been kicked down the road for decades.: )0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 348.2K Banking & Borrowing
- 252K Reduce Debt & Boost Income
- 452.3K Spending & Discounts
- 240.7K Work, Benefits & Business
- 616.9K Mortgages, Homes & Bills
- 175.6K Life & Family
- 253.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards