Metro Bank faces £16 million fine due to data entry failures

Metro Bank recently faced a £16 million fine from the Financial Conduct Authority (FCA) for inadequate anti-money laundering systems between 2016 and 2020.

Although the bank took steps to improve these issues by 2019, delays in full compliance underscored systemic weaknesses. Banks are not the only businesses that can face such hefty fines. Every business has to comply with consumer rights and regulations such as GDPR, breach these and the consequences are high.

The bank’s failure involved an automated monitoring software system that struggled with data input errors, resulting in over 60 million transactions—valued at £51 billion—being under-monitored. Effectively this means that just like a spreadsheet there were inadequate safe guards against manual data entry errors.

To avoid such costly penalties, businesses must prioritise robust and adaptable software solutions, as well as building a relationship with their developers – meaning that their true needs can be met. Off-the-shelf systems often lack the flexibility needed for bespoke data handling and evolving compliance standards. A system tailored to limit the issue of money laundering should have taken into consideration issues to impact this.

Solutions built specifically for the bank’s structure could be crafted to minimise input errors and adapt to complex transaction patterns.

A bespoke software system means that companies maintain complete oversight, allowing quick adjustments when regulatory requirements change.

Custom software can be designed with top-tier security from inception, ensuring optimal data protection.

Custom solutions can be more expensive upfront and require continuous maintenance. Yet, this investment yields long-term benefits, as tailored systems can reduce errors, enhance efficiency, and help businesses stay ahead of compliance issues. Quite simply the time it saves will pay for itself.

Partnering with an experienced provider like Shoothill brings these advantages within reach. Shoothill’s expertise ensures that clients receive not just bespoke software but also ongoing support to adapt as financial regulations evolve. Unlike off-the-shelf platforms, a partnership with Shoothill means having direct communication with a dedicated development team, simplifying updates and improvements without navigating complex customer service layers.

Metro Bank’s case is a clear reminder that when it comes to technology. Ensuring bespoke solutions not only strengthens compliance but also positions businesses to respond innovatively to future industry changes. Choose Shoothill for solutions that safeguard operations and support continuous growth.

If you’re in need of an advanced digital technology solution to help improve or scale your business, speak with the team at Shoothill today.