UK BANKING GIANT Royal Bank of Scotland (RBS) will take a £125m hit over its major IT systems failure back in June, the company revealed today.
The firm's latest financial reports reveal that RBS/Natwest posted a loss of £1.5bn for the second quarter, after they were hit by an IT blackout that saw customers unable to make or receive payments for almost an entire week. RBS Group is facing a £125m charge to cover costs related to the IT systems failure.
"The immediate software issue was promptly identified and rectified. Despite this, significant manual intervention in a highly automated and complex batch processing environment was required. This resulted in a significant backlog of daily data and information processing," the firm said in its filing.
"The consequential technology problems and backlog took time to resolve. However, at no point was any customer data lost or destroyed."
Chris Papa, MD of cloud computing firm Qubic said, "For the average size business, the consequences and associated costs of such a total system failure may not be as enormous as that of RBS but the impact on customer service may be just as telling.
"Performing major system upgrades always comes with a risk; having the right contingency plan and backup solution in place is fundamental to ensure that any unforeseen eventuality can be managed.
"In the case of RBS, it really is hard to believe that such a damaging failure with its huge implications for the business could be allowed to happen and I'm sure we will never get to the bottom of it. What it has done, however, is serve as a wake-up call to those businesses across all sectors where downtime isn't an option." µ
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