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Bank of England’s technology outmoded, outdated and outrageously expensive claims new Government study

The Central Bank of the UK – the Bank of England – runs on outmoded technology, dormant business culture and wasteful procurement processes. This is the verdict of a cross-party Select Committee appointed by the offices of the UK’s Houses of Parliament.

This particular Parliamentary Select Committee, set up to scrutinise the Bank’s practices, concluded that The Bank of England’s business and technology is from a bygone era.

The committee called for a drastic upgrading of technology, business processes and management culture. It called for an updated culture of diversity of technology, staff and the overall vision of the bank.

The report noted that ICT systems are both expensive and outdated. This is because the procurement systems are ‘not fit for purpose’. The hierarchical organisational structure was found to be sclerotic with ‘too many job titles creating complexity and cost’. As a result, the Bank of England’s IT estate is ‘too large for its needs’.

Many of the bank’s processes are ‘overly complicated, inefficient and very costly to administer – the report concluded.

In the year 2017-2018, the bank spent £101.4 million and £15.8 million on technology operations and HR – costs that are 33.6 per cent higher than the central government benchmark for public sector organisations.

The Bank of England is currently embarking on a ‘One Bank Services Transformation’ project to create a new ‘roles-based structure’. It will replace 25 central services systems with a single cloud-based system in an attempt to save £15 million a year in running costs from 2021-22.

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