RBS Group shells out further £50m over IT disaster

RBS Group shells out further £50m over IT disaster

Summary: The banking group's 'technology incident' back in June has now cost a total of £175m, much of which has taken the form of compensation payments to affected customers of NatWest, RBS and Ulster Bank.

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The Royal Bank of Scotland Group has had to set aside a further £50m for compensating customers who were affected by the banking group's massive IT failure earlier this year.

The meltdown, which stopped balances from updating and held up payments for over a week, hit many customers of NatWest, RBS and Ulster Bank in June. In August, RS Group said it was setting aside £125m to cover costs and compensation associated with the outage.

However, RBS Group's latest quarterly results, released on Friday, showed that a further £50m went in the direction of clearing up the fallout during the third quarter of the year.

Referring to its "technology incident", RBS Group said in the results that most of the fresh £50m was redress for customers of Ulster Bank.

The banking group also claimed that growth in new lending was "impacted by relationship managers' efforts being diverted from lending due to the Group technology incident".

The problems hit when someone updated RBS Group's batch-processing systems, and something broke. RBS chief Stephen Hester told MPs in September that no data was lost in the incident.

Topics: Banking, Security, United Kingdom

David Meyer

About David Meyer

David Meyer is a freelance technology journalist. He fell into journalism when he realised his musical career wouldn't pay the bills. David's main focus is on communications, as well as internet technologies, regulation and mobile devices.

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