Bank of England's legacy systems and manual operations cost it heavily

The Public Accounts Committee (PAC) has said it needs to report back with a plan to modernise systems and processes by June

Bank of England with Wellington statue

The Bank of England is overspending because it's using legacy infrastructure and relies on manual processes rather than automation, a report by the government's Public Accounts Committee (PAC) has revealed.

The organisation apparently spends 33.6% more on IT compared to other departments in the public sector, because it has failed to update its systems and processes.

Because the Bank of England is responsible for processing such an enormous value of transactions (600 billion a day), it cannot afford an outage and so is sticking to older technologies, such as the 23-year-old platform known as the real-time gross settlement (RTGS) system, rather than exploring the potential of new automated operations.

This was supported by the PAC's report, which revealed that although the Bank of England's expenditure was much higher than other departments, its availability was also much higher, only experiencing outages 0.01% of the time, compared to the government's 0.37% average.

Advertisement
Advertisement - Article continues below
Advertisement - Article continues below

Another area that has been highlighted as inefficient is the Bank's working practices and diversity of job roles. The report highlighted that it has not explored the potential of hot desking, for example, which could be preventing modernisation.

"The Bank's ICT systems are expensive and need updating, its procurement systems are not fit for purpose, there are too many job titles creating complexity and cost, and the estate is too large for its needs," the committee said.

Although the Bank of England is now in the process of replacing the antiquated RTGS system used to process payments, it's not planned to come into effect until 2025, by which point the migration would have cost upwards of 150 million.

The PAC has now requested that the Bank of England reports back in June with a clear strategy for digital transformation and modernisation in both its IT and HR practices.

Featured Resources

Digitally perfecting the supply chain

How new technologies are being leveraged to transform the manufacturing supply chain

Download now

Three keys to maximise application migration and modernisation success

Harness the benefits that modernised applications can offer

Download now

Your enterprise cloud solutions guide

Infrastructure designed to meet your company's IT needs for next-generation cloud applications

Download now

The 3 approaches of Breach and Attack Simulation technologies

A guide to the nuances of BAS, helping you stay one step ahead of cyber criminals

Download now
Advertisement

Most Popular

Visit/operating-systems/25802/17-windows-10-problems-and-how-to-fix-them
operating systems

17 Windows 10 problems - and how to fix them

13 Jan 2020
Visit/hardware/354584/windows-10-and-the-tools-for-agile-working
Sponsored

Windows 10 and the tools for agile working

20 Jan 2020
Visit/microsoft-windows/32066/what-to-do-if-youre-still-running-windows-7
Microsoft Windows

What to do if you're still running Windows 7

14 Jan 2020
Visit/web-browser/30394/what-is-http-error-503-and-how-do-you-fix-it
web browser

What is HTTP error 503 and how do you fix it?

7 Jan 2020