Has RBS Banking Software Failed to Keep Up With Today's Technology?
As technology continues to expand, some commonly used definitions are being reshaped and morphed into new meanings. Think of the world viral, which decades ago was negatively associated with the spreading of a disease and nowadays, its more commonly referred to as something passed around on the internet in mere minutes.
The same is true for the word legacy, once associated with the positive aspect of passing down one's generational monetary gifts onto the next. Today, the term legacy also refers to software or hardware systems that are so archaic, they have lost touch with consumers and are failing many banking customers. What's worse, the banks are often stuck between a rock and a hard place when it comes to upgrading, since their ancient infrastructure is so widely used, it seems almost impossible to replace in the terms of downtime and financial restrains.
RBS = A Really Bad Situation for the Royal Bank of Scotland
omputer Weekly recently released an article that points to recent failures in technology by the RBS (Royal Bank of Scotland) who admits their IT systems need an overhaul after decades of under-investment. Problems from the past included:
A glitch in their batch process scheduler that ended with 12 million customer accounts being frozen, leaving consumers unable to access their funds for a week or more in some cases.
On one of the busiest shopping days of the year in December of 2013, IT problems stopped RBS customers from making credit card and other online payments.
Other IT issues from 2012 also left customers locked out of their accounts for days.
The article also cited an anonymous source from a senior IT professional from within the UK banking sector who had his own opinions about the RBS dilemma. The nameless nemesis believes the outlook for the once great Royal bank is very bleak.
"I have the feeling customers want to get out, nobody wants to work there and management is chopping it up," he said. "In a few years it will perhaps be a skeleton and the brand name will be sold off to somebody else and a much smaller operation will emerge, doing very basic banking."
To avoid financial extinction, industry leaders need to make some very tough decisions when it comes to upgrading their banking software and replacing antiquated hardware systems. CEO's and CFO's must come together, learn from the missteps of RBS and invest in the future of their own institutions.