The FSA fined BoS for failing to keep accurate records of 250,000 mortgage customers. The problem was highlighted when it mistakenly handed out £20m in goodwill payments to the wrong customers.
The root cause was identified by the FSA as “There was no structure in place to identify errors as the occurred and no checking procedures thereafter”. The errors had built up over a 7 year period.
This is not the first problem. The FSA fined BoS £3.5m in 2011 for not handling customer complaints correctly. Apparently. It had wrongly rejected over 50% of complaints. BTW Great way of keeping the Customer Satisfaction ratings high.
Yet again the banks are guilty of some basic errors which could be eliminated with effective implementation of MDM (Master Data Management) and BPM (business process management) technologies.
TIBCO, provides messaging software for many of the core banking systems, so it is disappointing that the banks do not implement the world class MDM and BPM solutions that are also available.
Vivek Ranadive talks about top companies providing “Extreme Value” , but this is another example of some of the UK’s largest companies delivering “Extreme Incompetence”.
The problem seems to be that the fines levied by the FSA are so small compared with the profits made by the banks that they have little effect. The FSA should take a look at the FDA who fines are 1,000 times greater. (The FDA fined the American Red Cross $16.1m last year).