RBS to impose technology spend freeze, leaked memo shows

The Royal Bank of Scotland (RBS) is to put a halt to its investment in technology, a leaked internal memo has revealed.

According to the document, which the BBC published in full, the IT cost reduction initiative is top of a list of 11 the bank is planning on implementing at a “global and regional level”.

In the memo, Chris Kyle, chief financial officer (CFO), wrote: “Freeze on hardware and software spend to be implemented for the remainder of the year. Direct approval rights to be withdrawn from cost centre users.

“All hardware and software spend must contain the approval of the relevant ExCo member and Regional CFO so that it can be considered on an exceptional basis.”

In terms of global IT programmes, a committee featuring Stephen Norman, Alexis Tobin and David Shalders, the bank’s chief information officer (CIO), chief administrative officer and chief operating officer (COO), will decide on what spending projects should be allowed to go-ahead.

Other areas to be impacted by the investment freeze include training, travel, telecoms and marketing.

All freelance consultants will be expected to take a two week holiday between 19 and 30 December of this year, the document outlined.

By Jim Ottewill