At the end of 2018 the UK Treasury Committee announced that it would launch an inquiry into information technology (IT) failures in the financial services sector. The Treasury Committee has stated that it will appoint a specialist advisor to help provide analysis and aid the inquiry.
The past 18 months have seen numerous IT failures in the financial services sector. Equifax, Barclays and TSB have all suffered incidents, to name a few. TSB is arguably the highest profile case, when 1.9 million customers were logged out of their online banking accounts for up to a month and with some customers also claiming to have been able to view other customers’ bank details. This occurred after the bank attempted to migrate customer information from its former owner to current owner Banco Sabadell.
The inquiry by the Treasury Committee is set to explore the common causes of such operational incidents, to better understand what consumers have lost as a result of the failures, and also to determine whether regulators such as the Bank of England Prudential Regulation Authority and the Financial Conduct Authority have the necessary ability and power to hold firms involved to account.
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