In July, City Regulators told banks and financial organisations they have a ‘maximum outage time’ of just two days. The warning – and it is a warning –comes after several organisations in the UK’s financial services faced significant systems outages, stopping customers from accessing and spending.
These outages include the Faster Payments system, which is used by most of the UK’s banks and building societies,as well,as the huge outage from TSB back in April which was widely reported across the media. More recently, a hardware failure at Visa affected millions of accounts across Europe opened the company to considerable criticism.
These outages support a growing base of evidence the payments industry needs to change.Consumers are getting fed up. As reported by multiple leading media organisations, the key point raised by regulators in a joint paper by the FCA and Bank of England is a failure by financial institutions to provide operational resilience.
By October 5 this year,organisations in the sector must be ready to report how they intend to respond in case of significant disruption and further outages, which is not long at all
Resilience is underpinned by better testing
This growing number of service outages is not altogether surprising. The pace of technological change in financial services is accelerating at an immense pace. Young and eager FinTechs that thrive on change and have the ability to ‘think outside the box’ are bringing new ideas to the table; popular ideas that demand state-of-the-art technology if they are to be implemented successfully.
Mainstream financial organisations fall-down because they are rushing the testing process so they can bring…