The Treasury Committee has reached out to the CEOs of nine banks and building societies to gather information regarding the extent and repercussions of IT failures that have impacted their operations over the past two years.
This inquiry follows a significant system outage at Barclays, during which customers were unable to access their accounts for three days, coinciding with the HMRC self-assessment deadline and a period when many wage payments are typically made.
The Bank of England has previously indicated that while isolated outages at individual institutions may not pose a threat to the UK’s financial stability, IT failures involving systemically important firms or multiple entities simultaneously could be concerning.
Members of Parliament are requesting data on the frequency and duration of IT outages experienced by current account providers, as well as the total number of customers affected and the compensation disbursed to them. They are also seeking clarification on the causes of these outages.
In its correspondence with Barclays, the Committee has posed specific questions regarding the recent outage. These inquiries include how customer service teams addressed the needs of distressed customers and the steps taken by the Board to resolve the issue.
Committee chair Dame Meg Hillier MP expressed concern about the declining number of high street bank branches, noting that IT outages can significantly disrupt customers who rely on these services for essential needs, such as purchasing food or paying bills. “When a bank’s IT system fails, it can create serious challenges for our constituents,” she stated. “The timing of this incident at a major institution like Barclays raises questions about whether it was a mere coincidence or indicative of poor planning. It is vital to understand what transpired and what measures will be implemented to prevent a recurrence.”