As consumers and firms come to rely more heavily on technology, the Treasury Committee is today launching a new inquiry into IT failures in the financial services sector.
The Committee will examine the ability of financial services institutions such as banks to guard against service disruptions and to put things right in the event that disruptions do occur.
The inquiry will focus on the common causes of operational incidents in the sector, the ways in which consumers lose out as a result of such incidents, and whether regulators have the relevant skills to adequately hold people to account.
The Committee will appoint a Specialist Advisor for this inquiry to provide analysis.
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.
“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.”