Lloyds Whistleblower Says Bank's Business Continuity Plan is Flawed
A former business continuity executive claims he was forced out of Lloyds Banking Group because he identified severe problems what would cost £200 million for the bank to remedy.
After all, Lloyds itself suffered two high profile technology outages in 2012, including an outage in October and a similar disruption on December 31. In the October incident, customers were not able to access the Lloyds’ online services, make payments via credit cards or withdraw money from ATMs. Less than three months later on New Year's Eve, Lloyd's customers experienced "intermittent" problems using ATMs and accessing banking account information.
Lloyd's technology problems, although high profile, were not as large as RBS' computer failure on June 19, 2012 that was caused by a corrupt software update to the bank's core payments application. Millions of customers NatWest and Ulster Bank could not make payments. Many of NatWest's account holders had to wait for more than a week for the system problems to be fixed, while 100,000 customers of Ulster Bank had to wait almost a month before the payment systems were running normally again.
These outages should serve as a wake-up call to the European banks, says London-based Nicholas Brewer, senior analyst at Aite Group. "There has been an underinvestment in core systems over the past few years, as the banks have been focused on the euro crisis and credit crisis," Brewer says. "The big back end systems have not really been touched."
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