Hot Features
Premium
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
You know RBS (LSE:RBS). People used to think that the acronym stood for the Royal Bank of Scotland. Lately, UK citizens, all of whom collectively own 81% of the bank, are beginning to recognize that RBS better describes Really Bad Service, especially those poor blokes and ‘blokettes’ who are customers of the bank.
As if the bank’s need of a bailout, or if the PPI and Libor scandals were not enough to disturb the public, IT keeps giving RBS a black eye. No, IT is not a creature that crawled ashore from the North Sea or even a kin to the infamous Nessie. IT is like a disease that crops up more than occasionally scaring the beejeebies out of RBS customers. Of course, IT is Information Technology, something at which RBS seems to be almost woefully inept. And there’s nothing like the annoying taste of ineptitude to inspire people to shop elsewhere.
Keep in mind that it has been less than a year since the RBS IT system reared its ugly head, freezing customers’ accounts for both deposits and withdrawals and blocking access to their account information. The freeze was initiated during the IT department’s process of installing a software upgrade. That fiasco cost RBS £175 million pounds in costs to correct the problem.
Also keep in mind that RBS markets its Digital Banking as a means to:
- View account balances and up to 7 years statement
- Transfer money and pay friends, family and bills instantly
- Set up text and email alerts to keep an eye on your money
- Plan and track your savings goal with our helpful tool
- Manage standing orders and Direct Debits
- Go paperless – order up to 3 months free paper statements if you need them
That would be great — if customers were able to actually rely on the accuracy of the information . . . or even access it. Today the two million or so users of the RBS mobile banking app found a message on their smartphones that said, “Unable to connect. This app requires an internet connection to work. Please check you connection and try again.”
Oops!
That’s a word that I have never wanted to hear from a surgeon, a dentist, a barber, or a pilot. I’m adding banker to that list. This is the second time this year – that we are aware of – that the app has malfunctioned. Frankly, that is two times too many.
Come on, RBS. This is the digital information age. If you can’t manage your banking operations, at least clean up your IT department, from top to bottom, if necessary. This is not the department where you afford to employ either the incompetent or the mediocre. Sure, information technology keeps “going where no man has gone before” at warp speed. So it only proves my point that you can afford to employ only the best and the brightest, from your CIO all the way down the line. This is not a department for on-the-job training. The repetitive nature of these problems makes us think that you have hired babies on formula to drive a Formula One car.
RBS, you have a problem. It’s not software glitches. It is incompetence. Let’s put it this way: If I kept taking my Jag to the same mechanic for repairs, only to have it “freeze up” three times in one year, you can bet that I would find another mechanic. You’re driving us crazy!
Now that I’ve got that off my chest, I’m done.
RBS share price was down 2.9% to 327.60 at 3:05 today. I wonder why.
