Kamis, 21 Juni 2012

NatWest online banking meltdown: Millions of customers unable to move money or pay bills as accounts freeze

NatWest online banking meltdown: Millions of customers unable to move money or pay bills as accounts freeze

  • Woman is stranded in Italy after NatWest card failed
  • 1,000 branches to stay open until 7pm to help customers
  • Bank says no customers would be 'permanently out of pocket' but says nothing on covering penalty charges
  • Experts warn more problems ahead for all UK banks in rush to offer new sophisticated payment methods

By Andrew Oxlade, Yasmin Laggoune and Camilla Canocchi

PUBLISHED: 08:18 EST, 21 June 2012 | UPDATED: 14:13 EST, 21 June 2012

NatWest customers were unable to move money or pay bills from their accounts today as a huge technical failure hit services.

Others reported being unable to withdraw money because wages had failed to arrive in their accounts.

As many as eight million people may have been affected, although some were reporting they still had access to their money.

Disruption: Natwest customers reported problems with the bank's online services

Disruption: Natwest customers reported problems with the bank's online services

Account balances were also not being updated while some small business owners said they had been unable to pay staff.

The banking group apologised to its customers for the problems and said it was working hard to fix them.

But a spokesman admitted it was possible that the glitch could also affect customers expecting payments to be made into their accounts tonight.

Asked whether it was possible that more account-holders will encounter problems tomorrow, the spokesman replied: 'Potentially, but hopefully not.'

The bank promised to keep 1,000 branches open until 7pm tonight in all major towns and cities to 'assist customers'.

One branch in West London had closed its doors with only two members of staff outside telling customers that they would not know until tomorrow when services would be restored. They also said NatWest customers should only use the bank's own ATMs to guarantee being able to get money out.

NatWest, which carries the new ad slogan 'Helpful Banking', has not said whether it will cover penalties imposed on its customers by third parties for late payments on credit cards and bills.

WAS NATWEST'S NEW MOBILE PAYMENTS GIZMO TO BLAME?

Last Wednesday, NatWest heralded a leap forward for its mobile phone payment technology.

It launched a system - GetCash - that would allow people to take cash from an ATM without using their cash card, by making a request on their handset.

They are sent a six digit pin number, after making the request, which can be entered at a cash machine.

The aim, the bank said, was to help people who may have lost or forgotten their card or those who want to leave their wallet at home.

It was made available to around two and-a-half million customers who already have the banking app on their phone - on iPhone, Android or BlackBerry Smartphones, and on the iPad.

The launch comment from Ben Green, head of mobile at NatWest and RBS, well now have a sense or irony: 'We've heard countless stories from customers who've left their wallet behind, or parents who need a quick way to send money across to their children immediately.'

NatWest, which is the main branch operation in the UK for the part-nationalised Royal Bank of Scotland group, said in a statement: 'This is a technical problem affecting a large number of NatWest and Ulster Bank customers, and a small number of RBS customers, including some of our business customers. 

'It was caused by a failure of our systems to properly update customers' balances overnight. The main problem customers are having is that where people have had money go into their accounts overnight, there may be a delay in it showing up on their balance.

'This is an unacceptable inconvenience for our customers, for which we apologise. We can assure our customers that this problem is strictly of a technical nature and will be fixed as soon as possible. We can also confirm that no customers will be permanently out of pocket as a result of this.'

A spokeswoman declined to comment on whether this would also mean the bank would cover late payment penalties incurred as result of the account failures.

The RBS group has 26million customers in the UK with nearly eight million holding NatWest current accounts.

RBS-owned Ulster Bank in Northern Ireland, with 100,000 customers, is also affected. 

The problems began at 8am, according to reports from customers.

Hundreds of customers turned to NatWest's feedback website to voice their anger. One customer wrote: 'If my Direct Debits bounce as a result of my wages not showing, are you going to cover my charges waiver your own for bounced payments please?'

At 2.50pm, nearly seven hours after the problems began, NatWest added a statement to the page saying: 'We continue to experience technical issues and are doing everything we can to resolve ASAP.

'We recognise this has caused significant inconvenience. This is an unacceptable inconvenience for our customers for which we apologise.'

Bob Spearman, from Petworth, West Sussex, told the BBC his tax credit payment had not been paid into his NatWest account.

'We, like many other low-income families, live from week to week and the Child Tax Credit weekly payment is a lifeline on which we rely,' he said.

Thousands more comments were posted on Twitter.

Some people reported being unable to use their cards to make payments.

Customer Kora-Lee Holmes said she was stranded in Venice, Italy, because she was unable to check out of her hotel because her NatWest card was not working.

She wrote: 'Missed my flight home from Venice because Natwest's server problems mean I can't check out of my hotel. New flights = £200.'

From 3.30pm, some customers reported that payments and salary payments were beginning to show in accounts.

Following a breakdown in trust in banking, the industry has try to rebuilt its relationship with customers in recent years. NatWest launched a multi-million pound advertising campaign in 2010 to promote its Customer Charter.

The 14-point charter included the commitment: 'If we make a mistake we will apologise and fix it, quickly and fairly.'

That may give hope to those seeking comp ensation for late payment penalties that they may face.

RBS shares shed 6p, or nearly 2.5 per cent, as the events unfolded, down from an intra-day high of 250p at midday.

Helpful Banking: The 'Your Ideas' feedback page on the NatWest website

Helpful Banking: The 'Your Ideas' feedback page on the NatWest website

'More problems ahead for all British banks'

Last week, RBS-NatWest launched a mobile banking app that lets people to withdraw money from cash machines using their smartphone.

It is the latest bank to offer such technology as the industry moves towards making smartphones digital wallets.

But the rush to offer new technology may come at a price.

Experts warned that customers of UK banks would increasingly face such problems because of the rush to deliver new and evermore sophisticated services.

Daoud Fakhri, senior analyst at consultancy Datamonitor Financial Services, said: ‘This episode is emblematic of wider problems facing the banking sector as a whole.

'Many providers, being early adopters of IT systems when the technology was still in its infancy, have been left saddled with inflexible core systems that are often several decades old, and that are increasingly unable to cope with the demands being placed on them.

‘The growing expectations of consumers around online and mobile banking means that the tensions between the provision of ever more sophisticated services and the capability of core systems to satisfy these demands are close to breaking point, and this increases the likelihood of episodes such as the NatWest mishap happening again.’

Here's what other readers have said. Why not add your thoughts, or debate this issue live on our message boards.

The comments below have not been moderated.

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I think pensions get paid on a Thursday, don't they? The local Lidl is always busy on a Thursday!

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And Eurogeddon hasn't arrived yet! I bought another 20 tins of beans today ready for when it all collapses.

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Sounds like an upgrade to their overnight batch systems weren't properly tested. In my experience, very often caused by aggressive management wanting the impossible done too quickly and without good planning. Whatever the cause, banking is far too important to take risks. If it was caused by aggressive management, I hope those concerned have to repay any bonuses they have received and that they don't get paid a bonus for sorting out this mess.

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.....the I.T.dread...Murphy's Law....'If it can happen, it will'....sounds like it did..........

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Under attack

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excuse me johnny but i had no dog food in for my elderly dog as he can only eat a certain tinned food now instead of the dry food the younger dog has, i had no money to pay the nursery and my child tax credits didnt go in. i had to phone tax credits and get an automated message about natwests problems to know what was going on. i was panicking that they were messing me about with payments again and trying to work out how i was going to get basics like toilet roll from till tuesday. ive had extra expenses this fortnight with my daughters nursery photos, shes needed new clothes, i wore out my shoes as i walk everywhere. we cant all "prepare"

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This could be just a taster of things to come later this year starting in Spain and spreading through the European banking system , it's called Mutual Indebtedness !.

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Yep one of those people affected was me. Its been such a pain for everyone to wake up and realise no money has gone in and for them to take half the day to sort it out was painfully slow! If it was the other way round and they were out of pocket we would all have been charged. Makes u wonder how much they must have earned in interest while they had hold of all these people wages etc

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The muck will hit the fan on the 25th as that is the day when hundreds of thousands of landlords of Business Premises get their 3 monthly rent.And if a tenant is 1 day late the landlord can send in the Bailiff. So if you are a tenant of business premises make sure you have enough in cleared funds that day or the bank wont pay your rent. Especially if they have run out of money themselves as this article would imply.

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Helpful banking! ???? As for the lady stranded in Venice. Surely you'd take a back up card! Never use a debit card in a hotel for check-in guarantee. They put a hold on funds in your current account. Best trick is to let them pre-authorise on a credit card. No money is exchanged, just gives the hotel a guarantee they'll paid when you leave. But When you check out you can still pay in cash, debit card, credit card or TCs and the credit card pre-auth lapses if not used. I always carry a couple of cards from different banking groups so if one fails I can try the other. Plus I always try and make sure one is Visa and the other MasterCard. Just sensible especially when travelling far from home. Expect the unexpected!

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