Commonwealth Bank splurges on IT

The Commonwealth Bank of Australia has reported higher operating expenses over the past six months, due in part to higher IT expenses, according to ITnews.

The bank reported that in the half year ended 30 June, "operating expenses increased 2% compared to the prior half to $4.333 million [$4.3 billion] which included higher information technology expenses and an out of cycle 2% pay rise."

Rising costs were attributed to "IT expense, maintenance, development, and just significantly higher volumes going through the business that lead to higher IT costs," chief financial officer David Craig said.

Worried clients are increasingly quizzing IFAs on how their personal data is stored after a string of banking scams has hit the headlines, writes FT Adviser.

Mel Kenny, chartered financial planner for London-based Radcliffe & Newlands, noted the trend after a gang accused of online identity theft was arrested, and a network of thousands of computers that contained online banking details from UK customers was uncovered.

He said: "I have found that clients increasingly want to know how their data is kept. They want to know whether it is lying on desks and then thrown away in the bin with the regular rubbish, or if it is properly stored and then shredded. It is becoming a priority for our clients as more stories of scams and banking fraud come to light.”

Some Alliance & Leicester customers have been unable to carry out certain online transactions thanks to a systems glitch caused by the transfer of accounts to the Santander IT platform, reports Finextra.

The Spanish bank acquired A&L in 2008 but only received court approval to transfer its assets to Santander UK in May, prompting a phased migration of accounts for over five million customers to its Partenon technology platform.

A spokesperson said: "The vast majority" of customers have had a trouble-free 'upgrade' so far during the process, which is expected to be completed by the end of the year. However, a small number of individuals have had temporary problems regarding specific Internet banking transactions.”