herald

Saturday 18 August 2018

AIB sues firms over €84m software snags

AIB is beginning legal proceedings against two international companies behind a new retail banking software.

The group said that the system, which cost some €84m, was "wasted expenditure".

AIB claims the Flexcube product was "beset with serious technical problems" from the outset in 2007 and only some 3,000 customers out of an expected five million were ever switched over to it in a three-year period.

In March last year, work on implementing the Flexcube product ceased after which the bank decided to decommission the 3,000 accounts using it. Since then, AIB claims, it had to return to using its existing retail banking system.

Mr Justice Peter Kelly granted an application by AIB to transfer to the Commercial Court the bank's action against Oracle Financial Services Software BV (OFSSBV) and Oracle Financial Services Software Ltd (OFSS Ltd), two related companies based in the Netherlands and Germany.

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