E-banking glitches harming customers
Customers are being left “cashless and cut off ” by unacceptable IT failures in the financial services sector, according to MPs.
A new report from the UK Government’s treasury select committee says online banking failures should not be tolerated. It also maintains that the current level and frequency of disruption, and the harm it causes to consumers, is not acceptable.
With bank branches and cash machines disappearing, customers are increasingly expected to rely on online banking services. However these facilities have been significantly disrupted due to IT failures, harming customers left without access to their financial services, the committee said.
Firms must resolve customer complaints and award compensation quickly, the committee added.
Financial sector levies may need to be increased to ensure the Financial Conduct Authority, Prudential Regulation Authority and Bank of England are sufficiently staffed and can resolve complaints and award compensation quickly, the report states.
Steve Baker, the inquiry’s lead member, said: “The number of IT failures that have occurred in the financial services sector, including TSB, Visa and Barclays, and the harm caused to consumers is unacceptable.”
Steve Baker MP