RBS boosts IT spend

[EMBEDDEDThe Royal Bank of Scotland (RBS) says it is increasing its spending on IT, as it delivered a tough set of annual results that saw losses nearly double to £2 billion, Computerworld UK reports.

The IT investments are crucial in meeting regulatory changes - including meeting US governance and risk management requirements - while improving customer service and launching new banking products, RBS adds.

RBS is spending £6 billion on technology and marketing, in an attempt to overhaul how it runs. Its IT spending was aided by £3 billion cost cuts achieved since the start of the financial crisis - including from cutting staff.

Prime minister David Cameron's government and the opposition Labour Party have made common cause in demanding pay restraint from banks bailed out by the taxpayer, Bloomberg Businessweek states.

As UK public sector jobs are cut, pay is frozen and the economy teeters on the brink of a second recession, the finance industry is facing a backlash.

RBS has set up a single global technology platform for its wealth management division and is also working on new mobile offerings, with its iPhone app now having been downloaded by one million customers, Computeach says.

At the same time, thousands of jobs are being cut at Global Banking and Markets, the investment arm of RBS.