UK banks have been told to reveal tech meltdown plans by The Bank of England and the Financial Conduct Authority.
Together, they have given financial firms three months to detail how they would respond if their systems failed. In part, this has been triggered by some TSB customers being left unable to access online banking for more than a month following a botched systems upgrade in April despite numerous promises from top brass.
The regulators have warned that upgrading computer systems to match services provided by newer financial start-ups could lead to service disruption. In certain conditions, they have suggested that two days is an acceptable limit for disruption to service.
Banks Could be Ordered to Take Action
If a plan is judged to be poor, the Bank of England and FCA have emphasised that senior management at banks will be held accountable for prolonged disruption to services.
The two organisations have launched a consultation seeking the views of customers as well as banks, insurers and other financial institutions.
“Operational disruption can impact financial stability, threaten the viability of individual firms and financial market infrastructures, or cause harm to consumers,” said FCA chief executive Andrew Bailey and the Bank of England’s Jon Cunliffe, in a statement.
At Boxhill Technologies, we constantly strive to ensure our systems are safe, reliable and robust.