3. What are the risks to a business when using digital technologies?
Case Study Ulster Bank
Ulster Bank is a major provider of financial services in Ireland. Thousands of households and businesses across the country have current accounts and savings accounts with it. However, when the bank suffered a massive IT systems failure, over 100,000 customers were affected. The problems lasted a number of weeks and during this time thousands of people could not access their bank accounts to withdraw money or access their savings. Ulster Bank solved the problem by investing in improved ICT. However, with its parent bank, Royal Bank of Scotland, they had to pay out millions of euro in compensation to the customers affected, as well as millions more in fines for all the difficulties the disruption caused.
LO 2.6
Pair work
In pairs, discuss your answers to the following questions: 1. List three personal banking services provided by banks to households.
2. Identify two possible benefits for Ulster Bank of using digital technologies to manage their customers’ money.
3. Identify two possible risks to Ulster Bank of using digital technologies.
4. Identify three consequences for a family if they could not access the money in their savings or current accounts for a month.
The use of digital technologies has brought many benefits to businesses. However, there are also downsides that businesses need to be aware of.
