“The Committee has launched this inquiry to consider the causes and consequences of these failures, and will examine what industry and regulators are doing to promote operational resilience” Rt Hon. Nicky Morgan MP, Chair of the Treasury Committee.
The inquiry is set to focus on and report the common causes of operational incidents in the sector, the ways in which consumers lose out as a result of the incidents, and whether regulators have the relevant skills to adequately hold people to account.
It will be interesting to read the findings. In particular:
is it human error, governance failings, cyber attacks, old 'legacy' tech or new 'fintech' tech that is giving rise to the most vulnerabilities and incidents?
will systems based on cloud infrastructure prove to have been more secure and resilient?
what will the Committee conclude as to what should be considered an appropriate level of tolerance for operational disruptions?
will those findings lead to an acceleration in adoption of cloud infrastructure by financial institutions?
... and we may also find out just how tech savvy the regulators are ...
Commenting on the launch of the inquiry, Rt Hon. Nicky Morgan MP, Chair of the Treasury Committee, said: “The number of IT failures at banks and other financial institutions in recent years is astonishing. Since becoming Chair of the Committee 16 months ago, there have been problems at Equifax, TSB, Visa, Barclays, Cashplus and RBS, to name a few. “Millions of customers have been affected by the uncertainty and disruption caused by failures of banking IT systems. Measly apologies and hollow words from financial services institutions will not suffice when consumers aren’t able to access their own money and face delays in paying bills. “As bank branches close and customers are ushered towards online services, the availability of those services is vital.