Reuters - Video

EDITION: U.S. | U.K. | IN

Business

RBS systems crash could prove costly

Tuesday, December 03, 2013 - 01:51

Dec. 3 - A systems crash that affected more than 1 million British and Irish customers of Royal Bank of Scotland reawakens concerns about the state-backed bank's technology platform. Ivor Bennett reports on the latest crisis to hit the state-owned bank.

▲ Hide Transcript

View Transcript

It lasted just three hours - but the effects will be felt for a whole lot longer. A system crash at RBS on Monday left more than a million customers unable to withdraw cash or use debit cards to pay for goods. It's the latest in a long line of problems that's left the bank's reputation in tatters. Customer Lawrence Brodie. SOUNDBITE (English) LAWRENCE BRODIE, CUSTOMER, SAYING: "You do immediately wonder what's happened and how has that situation arisen. And I have to say disappointing for me the fact that RBS, who are very, very good at communicating to me via text when they are promoting messages to me regularly, didn't choose to do so on this occasion." The cause of the crash is still unknown but it's not the first time it's happened. A similar problem last year cost the bank 175 million pounds in compensation. This glitch is likely to cost millions more. CEO Ross McEwan has promised to overhaul the bank's outdated systems, planning to spend 700 million pounds in the next three years Reputationally though, this couldn't have come at a worse time for RBS. It's still 80 percent state-owned after a bailout during the financial crisis. And earlier this month it was accused of mistreating struggling businesses for its own benefit. Director of Customer Solutions Susan Allen admits this latest problem could further upset customers. SOUNDBITE (English) SUSAN ALLEN, DIRECTOR OF CUSTOMER SOLUTIONS, RBS GROUP, SAYING: "It's awful. Our customers should be able to depend on us. That's the sort of bank we want to be. We want our customers to be abel to reply on us and we have let them down." RBS isn't the only bank under the spotlight at the moment after a raid on Commerzbank's offices in Germany. The search was linked to tax evasion probe. Officials are looking for evidence of wealth management products being sold as life insurance to help investors dodge taxes. The inquiry's focussed on a third party company which so far prosecutors haven't named.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

RBS systems crash could prove costly

Tuesday, December 03, 2013 - 01:51

Top News »

Investing 201 »

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)

The better bond funds The better bond funds

Wed, Aug 07, 2013 - (2:40)

Best bargain in 40 years? European stocks Best bargain in 40 years? European stocks

Thu, Aug 01, 2013 - (2:24)

Invest like an activist Invest like an activist

Fri, Jul 26, 2013 - (2:49)

Money Clip »

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

“Stalking” your dream home - Money Clip “Stalking” your dream home - Money Clip

Wed, Mar 27, 2013 - (2:50)

3 hidden tax deductions - Money Clip 3 hidden tax deductions - Money Clip

Thu, Mar 21, 2013 - (1:33)

Moving Pictures »

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)