Feeds

Irish banks settle with Oracle over banking software 'fiasco'

Bankers spunked millions on Flexcube

Internet Security Threat Report 2014

Allied Irish Banks (AIB) has settled its lawsuit with Oracle over Flexcube, a product the bank claimed was "beset with serious technical problems".

AIB signed a deal to deploy Oracle's Flexcube Universal Banking software and Flexcube Messaging Hub software back in 2007 – the deal was inked with subsidiary Oracle Financial Services Software. The banking group claims to have spent €84m on the gear since then that ended up being "wasted expenditure", the Irish Independent reported.

The banking group started proceedings against the Oracle unit at the very end of last year, and Justice Peter Kelly was told yesterday that a settlement had been reached.

During the case, AIB said that just 3,000 customers out of an expected five million switched over to the service over three years before work on the implementation ground to a halt in March 2010 and the bank returned to its old retail banking system.

The banking group was trying to claw back the €84m it spent on the project and damages for loss of profits and goodwill in the case.

AIB also said that the Oracle subsidiary told it in March that it was planning to cease development on the product on IBM's z/DB2 platform for Western banks, but that it would continue to work on the product for AIB.

That would have left AIB as the only Western bank still using the z/DB2 platform, which it said couldn't work because it had been promised upgrade costs would be shared across a number of similar banks and that couldn't happen if it was on the wrong platform.

The bank also claimed that an alternative product on the Oracle platform that it was offered was "wholly unsuitable".

The terms of the settlement have not been disclosed by either party.

AIB declined to comment. ®

Internet Security Threat Report 2014

More from The Register

next story
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
prev story

Whitepapers

10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.