More IT woes for RBS as savers denied interest

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More IT woes for RBS as savers denied interest

Karl Flinders

The Royal Bank of Scotland’s NatWest operation suffered a technical problem today that caused savers' interest payments to be withheld.

According to the Telegraph, NatWest customers logging into their online accounts were greeted by the message: "We are aware that monthly, quarterly and annual interest payments have not been applied to some savings accounts. This is being investigated as a priority and we'll update you with more information as soon as we can."

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NatWest said: "We are aware that there is an issue with interest being applied to some customers' NatWest Isas and savings accounts."

"We are working to resolve this now, and the missing interest will be applied to the affected customers' accounts as soon as possible. We will ensure that no customers lose out as a result. We apologise for the inconvenience caused."

RBS acquired NatWest in 2000. Customers of RBS, NatWest and Ulster Bank, which is also part of RBS, have been hit by numerous IT problems.

In December 2013, following major IT outages that stopped customers making online and in-store card payments on the busiest shopping day of the year, RBS CEO Ross McEwan said the failure of systems was unacceptable and blamed years of underinvestment in IT.

"For decades, RBS failed to invest properly in its systems. We need to put our customers' needs at the centre of all we do. It will take time, but we are investing heavily in building IT systems our customers can rely on," he said.

After several similar incidents in other banks, the Financial Conduct Authority (FCA), Prudential Regulation Authority (PRA) and Bank of England will review how finance firms manage their exposure to IT risks.

Royal Bank of Scotland (RBS) has outlined plans to cut costs and improve customer services, slashing the number of IT systems in the process. RBS said it will reduce the number of technology platforms by over 50% and reduce the number of core banking systems from 50 to 10. It will cut the number of payment systems it uses from 80 to 10."


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