AIB sues two related firms for €84m over software system

ALLIED Irish Banks is suing two related international companies claiming some €84 million spent by it on a new retail banking software system was “wasted expenditure”.

The bank 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 2010, 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.