Nationwide Audit Workplace praises Financial institution of England after complicated mega-project

The Financial institution of England’s £431m venture to interchange its core IT system achieved worth for cash and demonstrated good digital transformation observe, the Nationwide Audit Workplace (NAO) has stated.

In keeping with the spending watchdog, the general price elevated 15% on the £375m price range set in 2020.

It stated the venture, which started eight years in the past and was accomplished in April this yr, additionally affords classes for different authorities division initiatives.

The RTGS system settles funds made on techniques together with the clearing home automated funds system and bankers’ automated clearing companies. It has been in use since 1996, and is important in guaranteeing cash flows within the financial system.

Planning started in 2017, however when work actually obtained transferring on the RTGS substitute venture, in 2019, the financial institution stated it will swap from the then 23-year-old system in a “Large Bang” migration in 2025. 

Chatting with Laptop Weekly in July 2025, after the venture’s completion, Financial institution of England CIO and know-how lead Nathan Monk described the venture as “a hell of a journey”.

On the publication of the NAO report, Gareth Davies, head on the watchdog, stated RTGS is a part of important nationwide infrastructure. “The Financial institution positioned a excessive precedence on the RTGS renewal programme mixed with a low tolerance for failure,” he stated. “Its cautious planning and well-managed supply method ensured worth for cash, and set an instance of excellent observe and innovation for future digital change initiatives.”

In 2017, the financial institution got here up with a blueprint that set out the principle objectives of the system to interchange the legacy RTGS, and a yr later, Monk was introduced on board. “The Financial institution of England efficiently navigated complicated dangers and interdependencies to ship its RTGS renewal programme, incorporating innovation and finest observe in managing this digital transformation,” stated the NAO.

Programme staffing peaked at over 450 employees in 2022 and 2023.

The brand new system sees it transfer away from the normal mainframe applied sciences which have prevailed amongst monetary establishments, utilizing “extra modular, loosely coupled applied sciences”, based on Monk.

“It’s an ecosystem of merchandise, off-the-shelf, best-of-breed kind merchandise, after which we constructed the code for the core ourselves, as a result of there’s nothing off the shelf that met our necessities or wants,” he stated. “It’s going from legacy know-how, embracing new applied sciences, however then being constructed by means of off-the-shelf merchandise with a bespoke core.”

It went dwell in April this yr, when the brand new core settlement engine was accomplished. “That’s the ‘beating coronary heart’ and the place the entire logic about how all of the funds are settled [sits],” stated Monk.

Coordinating with the finance sector was important. The financial institution had its work reduce out to make sure your entire trade joined it on its modernisation journey, as a result of, based on Monk: “It’s not simply us altering one thing, we’re having to vary with trade.”

In its newest report, the NAO recommends the Financial institution of England prioritises sustaining and enhancing the system to maximise long-term worth.