The Old Lady’s Children Showing Their Age

Last week’s systems’ failure at the RBS was symbolic of the old clearing banks and their creaking 1970’s main frames. Those that have spent the money on flashy front end structures are merely flattering to deceive, as they divert attention away from the fact that many have not invested effectively in modern integrated technology, and in the case of RBS & Natwest we see the result of trying to continuously patch ageing mainframes systems. The result is inevitable when you don’t invest effectively in your core infrastructure, and inevitably your basic process starts falling down around you. After all good commercial banking is, or rather should be, a financial utility, just as water, electricity and gas are of a similar ilk.  (more…)