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    Home»Tech News»Banks pay customers millions after month’s worth of IT outages
    Tech News

    Banks pay customers millions after month’s worth of IT outages

    The Daily FuseBy The Daily FuseMarch 6, 2025No Comments3 Mins Read
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    Banks pay customers millions after month’s worth of IT outages
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    9 main banks and constructing societies working within the UK collected at the very least 803 hours – the equal of 33 days – of tech outages previously two years, figures printed by a bunch of MPs present.

    The Treasury Committee – which has been investigating the influence of banking IT failures – compelled Barclays, HSBC, Lloyds, Nationwide, Santander, NatWest, Danske Financial institution, Financial institution of Eire and Allied Irish Financial institution to offer the info.

    It doesn’t embody the Barclays outage in January or the Lloyds outage last week – two incidents which occurred on pay day for many individuals, and left clients unable to pay their workers and payments.

    The report finds Barclays may now face compensation funds of £12.5m.

    “For households and people residing pay cheque to pay cheque, dropping entry to banking providers on payday generally is a terrifying expertise,” stated Dame Meg Hillier, the committee’s chair.

    “The very fact there was sufficient outages to fill an entire month inside the final two years reveals clients’ frustrations are utterly legitimate,” she added.

    Talking on the BBC’s At this time programme, she stated she hoped placing the info within the public area would encourage banks and the regulator to see if there was any extra that might be completed to cut back the disruption.

    Patrick Burgess of BCS, the Chartered Institute for IT, stated: “This as soon as once more highlights that the normal banking sector hasn’t stored tempo with the funding wanted to modernise its infrastructure.”

    The Treasury Committee information checked out IT failures which affected thousands and thousands of shoppers between January 2023 and February this yr. They discovered there had been 158 incidents.

    Whereas the info doesn’t embody the Barclays outage in January, which left one family without a home, the financial institution advised the committee that over half of on-line funds over the course of the primary day of the outage didn’t work as a result of “extreme degradation” of their system’s efficiency.

    Barclays confirmed to the committee that it expects to pay between £5m and £7.5m in compensation to clients for “inconvenience or misery”.

    When making an allowance for all the data shared by Barclays, this implies the financial institution may pay out as much as £12.5m in compensation as a result of outages during the last two years.

    The second highest quantity paid out by a agency in that very same interval is £350,000 from the Financial institution of Eire.

    The compensation paid out by different banks was:

    • AIB (£590)
    • HSBC (£232,697)
    • Lloyds (£160,000)
    • Nationwide (£77,452)
    • NatWest (£348,000)
    • Santander (£17,000)

    Shilpa Doreswamy is a director with GFT, an organization dedicated to the digital transformation of the monetary sector.

    “It is a stark reminder of the associated fee, each monetary and private, of failing IT programs,” she stated.

    “For patrons, this is not simply irritating, it may be devastating. When legacy banking infrastructure retains crashing, buyer belief crashes with it.”

    In his submission to the committee, Vim Maru – the chief govt of Barclays UK – stated the January outage was brought on by a software program downside with their system, and the incident was not as a result of a cyber-attack “or another malicious exercise”.

    “We proceed to work via the influence to make sure no buyer or consumer will probably be out of pocket on account of the incident.”

    Barclays advised BBC Information it was “deeply sorry to clients who’ve been impacted by any service outage”.



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