Home Business AIB risks technical collapse akin to Ulster Bank fiasco – McGrath

AIB risks technical collapse akin to Ulster Bank fiasco – McGrath

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Independent TD Mattie McGrath has called on the Minister of Finance Michael Noonan to seek immediate clarification from AIB in relation to its proposals to outsource work and staff from the Application & Development Management (ADM) teams within its IT division to a third-party service provider.

Deputy McGrath was speaking after fears were expressed to him that AIB is running a significant risk of repeating a massive disruption to its IT systems similar to the technical breakdown which Ulster Bank experienced in 2012:

“The Ulster Bank fiasco demonstrated to all us that any threat to core IT infrastructure in banks has the possibility of generating considerable chaos for the public and not just for customers of the main bank concerned.

I have been informed that current proposals by AIB to outsource facilities managed by its Application and Development Management teams represents a key strategic danger in terms of weakening ownership and control of these areas.

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By introducing additional risk into key areas such as payments processing, online banking and other services, the Bank would heighten the possibility of major disruptions to customers.

As in the case of Ulster Bank we have seen how damaging it can be to lose direct control of critical IT infrastructure.

The Minister, as the major shareholder in AIB must resist any moves by the Board to outsource such critical IT staff and work.

We cannot have a repeat of the kind of situation which prevailed for almost a month in 2012 when more than half a million bank customers were affected,” concluded Deputy McGrath.

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