Royal Bank of Scotland (RBS) is pledging to invest another £150 million a year to improve the strength of its IT systems, following the latest breakdown which saw 600,000 transactions vanish from customer accounts.
The breakdown involved an overnight processing failure which affected salary, benefit and bill payments and other debit and credit transactions in customer accounts. RBS is planning to reduce complexity by rationalising IT systems, retro-fitting legacy architecture, reducing supplier count, and investment in Ripple technology for automated bank transfers.
In 2012, RBS IT systems suffered a major breakdown after a software upgrade left over 6.5 million customers unable to access their accounts for several weeks. The bank was later fined £56 million by regulators. Since then, RBS has invested hundreds of millions of pounds in improving its IT systems.