{"id":34781,"date":"2019-10-28T15:55:34","date_gmt":"2019-10-28T15:55:34","guid":{"rendered":"https:\/\/www.intelligentcio.com\/eu\/?p=34781"},"modified":"2022-09-20T10:19:05","modified_gmt":"2022-09-20T09:19:05","slug":"call-for-stricter-regulations-to-reduce-it-outages-in-banking-sector-report-finds","status":"publish","type":"post","link":"https:\/\/www.intelligentcio.com\/eu\/2019\/10\/28\/call-for-stricter-regulations-to-reduce-it-outages-in-banking-sector-report-finds\/","title":{"rendered":"Call for stricter regulations to reduce IT outages in banking sector, report finds"},"content":{"rendered":"\n

A UK\ngovernment committee has warned that regulators must act to reduce an increased\namount of IT failures in the financial services sector. The number of incidents\nhas been deemed ‘unacceptable’ by the Treasury Committee.<\/em><\/p>\n\n\n\n

With online banking so popular in the digital era, customers are relying on online services in order to manage their accounts \u2013 but they are becoming frustrated at the frequency of IT disruption, the committee stated in its report, IT Failures in the Financial Services Sector<\/a>.<\/em><\/p>\n\n\n\n

While the committee conceded that completely uninterrupted access to banking services was not achievable, it stated that prolonged IT failures should not be tolerated and the current level and frequency of disruption and consumer harm was unacceptable.<\/p>\n\n\n\n

The report stated that customers are being left ‘cashless and cut off’ and\nsuggested ways to overcome the current level and frequency of disruption, as\nwell as consumer harm. <\/p>\n\n\n\n

The committee also highlighted the\ncloud service provider market as a source of \u2018systemic risk\u2019. It said the\nconsequences of a major operational incident at a large cloud service provider,\nsuch as Microsoft, Google or Amazon, could be significant, and that there was a\nconsiderable case for the regulation of these providers to ensure high\nstandards of operational resilience.<\/p>\n\n\n\n

Commenting on the report, Steve Baker MP, the Treasury Committee\u2019s lead\nmember for the inquiry, said: \u201cThe number of IT failures that have occurred in\nthe financial services sector, including TSB, Visa and Barclays, and the harm\ncaused to consumers is unacceptable.<\/p>\n\n\n\n

\u201cThe Committee, therefore, launched this inquiry to look \u2018under the bonnet\u2019\nat what\u2019s causing the proliferation of such incidents and what the regulators\ncan do to prevent and mitigate their impacts.<\/p>\n\n\n\n

\u201cThe regulators must take action to improve the operational resilience of\nfinancial services sector firms. They should increase the financial sector\nlevies if greater resources are required, ensure individuals and firms are held\nto account for their role in IT failures and ensure that firms resolve customer\ncomplaints and award compensation quickly.\u201d<\/p>\n\n\n\n

He added: \u201cThe committee has made a series of recommendations to the\ngovernment and regulators on how the impact of IT failures can be prevented and\nmitigated to ensure that consumers are protected.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

A UK government committee has warned that regulators must act to reduce an increased amount of IT failures in the financial services sector. The number of incidents has been deemed ‘unacceptable’ by the Treasury Committee. With online banking so popular in the digital era, customers are relying on online services in order to manage their […]<\/p>\n","protected":false},"author":21,"featured_media":34788,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[42,57,497,13,93,23,24],"tags":[13719],"class_list":["post-34781","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-finance","category-enterprise-security","category-government","category-main-story-newsletter","category-top-stories","category-united-kingdom","category-used","tag-treasury-committee"],"acf":[],"publishpress_future_workflow_manual_trigger":{"enabledWorkflows":[]},"_links":{"self":[{"href":"https:\/\/www.intelligentcio.com\/eu\/wp-json\/wp\/v2\/posts\/34781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.intelligentcio.com\/eu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.intelligentcio.com\/eu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.intelligentcio.com\/eu\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/www.intelligentcio.com\/eu\/wp-json\/wp\/v2\/comments?post=34781"}],"version-history":[{"count":3,"href":"https:\/\/www.intelligentcio.com\/eu\/wp-json\/wp\/v2\/posts\/34781\/revisions"}],"predecessor-version":[{"id":34791,"href":"https:\/\/www.intelligentcio.com\/eu\/wp-json\/wp\/v2\/posts\/34781\/revisions\/34791"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.intelligentcio.com\/eu\/wp-json\/wp\/v2\/media\/34788"}],"wp:attachment":[{"href":"https:\/\/www.intelligentcio.com\/eu\/wp-json\/wp\/v2\/media?parent=34781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.intelligentcio.com\/eu\/wp-json\/wp\/v2\/categories?post=34781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.intelligentcio.com\/eu\/wp-json\/wp\/v2\/tags?post=34781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}