The National Savings and Investments (NS&I) bank in the UK is under scrutiny for its digital project that has incurred costs exceeding £3bn and is deemed a “full-spectrum disaster” by the Public Accounts Committee (PAC). The PAC highlighted that NS&I lacks understanding of the project’s costs and has no workable plan for its modernization efforts.
The project, which aimed to modernize NS&I’s operations, has faced a £1.3bn cost increase since its inception. Despite additional funding of £109m from the government, NS&I remains unable to provide a clear account of the project’s expenses. The PAC raised concerns about the lack of accountability for consultants hired for the project and warned of risks to NS&I’s business and customers if the program fails.
A key aspect of the project involves replacing NS&I’s core banking engine, a high-risk element that is yet to be addressed. The legacy platform, provided through an outsourcing contract with Atos, will be replaced with a cloud-native platform from SBS. The introduction of SBS’s SBP Digital Core platform is scheduled for 2028.
The PAC criticized NS&I for being overconfident in its delivery capabilities without substantial evidence to support its claims. The committee highlighted a “good news” culture within the bank that hinders decision-making and conflict resolution. HM Treasury acknowledged that it should have intervened earlier to address the project’s setbacks.
In conclusion, the PAC emphasized the need for NS&I to develop a realistic plan for its transformation to avoid further financial risks. The committee expressed concerns about the taxpayer funding being channeled into a project that lacks clear direction and accountability. The challenges faced by NS&I in its digital modernization efforts underscore the importance of effective project management and risk mitigation strategies.
