CA Technologies has reportedly paid ‘millions of pounds’ to the Royal Bank of Scotland (RBS) as part of a settlement agreement after the lender’s 2012 IT outage.
A failed upgrade to the supplier’s CA7 batch processing software by bank IT staff was responsible for the breakdown of systems two years ago, with millions of customers unable to access accounts or make payments across the entire RBS group, including Ulster Bank in Ireland.
According to Sky News, CA has made a “significant” financial contribution to the bank, which paid out compensation of approximately £70 million (€88 million) to customers.
RBS was also fined a total of £56 million (€71 million) by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority last week for a series of safeguard and governance failures. Ulster bank in Ireland was fined €3.5 million by the Central Bank of Ireland.
It is not clear when the payment was made, with both parties prevented from revealing terms of the settlement due to non-disclosure agreements.
The high profile outage led to increased regulatory scrutiny of the technology infrastructure underpinning the core banking systems used by UK banks.
In its report, the FCA claimed that responsibility for the outage fell with senior IT and business executives who failed to ensure adequate processes were in place to prevent technology failures.
The bank claims it has invested £750 million (€945 million) over three years to improve the resilience of its legacy infrastructure, including moves to separate its batch processing systems.
However, RBS has continued to experience IT failures, with its services disrupted on the biggest shopping day of the year in 2013 – leading to CEO Ross McEwan admitting to “decades” of underinvestment in IT.
The bank systems were temporarily offline on Friday in the UK, one day after the publication of the FCA report, with some customers unable to make payments or withdraw cash.
Matthew Finnegan, IDG News Service
Subscribers 0
Fans 0
Followers 0
Followers