MPs demand action over rise in online bank crashes

I wonder if they actually know what the cloud is :thinking:

Still, it’s good they are looking at the major IT failures, although a levy means punishing banks who don’t have these issues


A real eye-opener.

Looking back, there’s been much made of the outages amongst the challenger banks (seemingly lots) v those in the high street (seemingly few).

It adds weight to the notion that there’s simply greater visibility with the likes of Starling and Monzo.


I’m guessing in terms of cloud based platforms they are focusing on the fact that banks are putting a lot more reliance on third party systems / software which is then largely out of their control should something go wrong.

Having said that, they are arguably more resilient then internal legacy systems!


Cloud services “stood out as such a source of systemic risk” for the financial system, the MPs said.


I was trying to think of a clever one liner to respond to that line in the article but I feel the simpsons gif does it way better

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Regulating cloud providers, what next?

It’s upto the banks to deploy geo redundant high availability servers etc if they only pay for minimal resiliency you can’t blame the cloud providers.

Why do I read the comments on articles like this :man_facepalming:

You would have to be a bit bonkers to do online banking.
It is not safe and is inefficient.


Did they elaborate on why it’s inefficient?

Of course not :rofl: They never do and I do wonder what demographic read the BBC articles from looking at comments on other stories :confused:


Cloud services do pose a systemic risk. If everyone is using the same service outages become widespread. They already have hard dependencies on Visa (look what happened when THEY went down). What if for example CallSign becomes systemically important as more banks start using their services for fraud detection. If they have an outage does the majority of the banking system lose a chunk of its fraud detection capability?

The industry have other similar issues already, if IPSL have issues cheque processing Barclays, LBG, and HSBC could all be impacted. Experian had a huge outage in January that left several high street banks unable to sell products because they couldn’t access credit records and the reason for the outage was both ridiculous and avoidable.

If it’s in-house or there is strong competition then it’s less of an issue, but one provider corners the market for providing a service to all or most major banks we end up with a systemic risk.

Legacy systems are a risk, but mostly when they’re changed. Day to day they chug along fine, it’s bringing them into the 21st century which is problematic. This, however, isn’t a systemic risk. A catastrophe at TSB or Barclays won’t impact the rest of the industry.

Sure you rely on one thing and that thing goes snap then it takes out your business. If you follow the Starling thread you can see when GPS goes pop it takes out them, Revolut and others. There’s also risk in relying on outdated unsupported internal systems or migrating data. IT failures can hit anything whether thats a human cocking up, or a random unpredictable event. If you do it yourself like Monzo own processing instead of GPS, then you can only blame yourself when it goes wrong and fix it yourself. It’s a balance of cost effectiveness and impacting customers.

It’s also the difference between a risk and a systemic risk. One bank with crap internal IT is a risk and annoying but the market will likely take care of it if they don’t fix it. A systemic risk means if it crystallizes we don’t lose one company, we lose the lot.

The issue MPs are raising (or one of them) is that cost efficiencies cannot be allowed to lead to systemic risks.