Page 270 - Bank Case Studies
P. 270
A simple argument criticising the UK banking system is that
where there is no competition there is no innovation and no
investment in technology.
In the US where there is greater competition the result has
been greater fostering of innovation by the banks.
Moreover, investment in the UK has experienced a litany of
problems associated with FinTS:
“9 June 2012
The worst banking meltdown to date hit millions of customers of RBS,
NatWest and Ulster Bank, locking them out of their accounts for days, and
in the case of Ulster Bank customers, for weeks.
The meltdown hit not only customers of the three brands owned by RBS
Group, but also people who were expecting salary payments from
businesses that held accounts with the bank and other transfers between
banks. RBS was later fined £56m by regulators, but the episode is
understood to have cost the bank more than £100m. (18)
21 Jan 2013
Lloyds suffers Faster Payments System problems
7 March 2013
Less than a year later, RBS and NatWest’s systems fall over again, leaving
millions of customers temporarily unable to withdraw cash or make
transactions.
April 2013
Lloyds and Halifax online banking hit problems
2 December 2013
A technological banking glitch on one of the busiest online shopping days
of the year left millions of shoppers unable to pay for transactions using
their credit or debit cards. The bank? You might have guessed by now: it
was RBS Group.
6 December 2013
