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Computer fault left millions unable to access their accounts

RBS to pay £125m in compensation to customers over IT glitch

Royal Bank of Scotland will pay compensation to customers affected by a software update malfunction.

Customers faced disruption for up to two weeks in June after a computer glitch left millions of customers unable to access their accounts.

According to communication and cloud computing firm Qubic, there are lessons to be learnt from Royal Bank of Scotland’s IT failure.

“In the case of RBS, it really is hard to believe that such a damaging failure with its huge implications for the business could be allowed to happen and I’m sure we will never get to the bottom of it. What it has done, however, is serve as a wake-up call to those businesses across all sectors where downtime isn’t an option,” commented Qubic’s managing director Chris Papa.

As well as compensating affected customers of the IT glitch, RBS has put aside £50 million for compensation over an interest rate swaps scandal, in which small businesses were miss-sold specialist insurance.

The bank, which is still 82 per cent owned by the government, saw a fall in revenue by 8 per cent over the six months to June.

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