Technical watchdog: Fixing Luminor online banking will take time
Supervision proceedings launched by the Consumer Protection and Technical Regulatory Authority (TTJA) to try and solve problems with Luminor's online banking environment conclude that achieving the desired level of stability will take more time. The Financial Supervision Authority has launched misdemeanor proceedings.
TTJA brought supervision proceedings against the bank in October 2022 over faults in its online banking environment that have had a negative effect on the quality of core payment services Luminor offers its customers for a few years.
The watchdog has met with Luminor's representatives to discuss possible solutions for improving the quality of the online banking system.
Luminor Bank AS has told TTJA that its focus is fully on ensuring IT stability for which purpose it is making additional investments, strengthening relevant teams and pursuing more effective cooperation with partners.
"The bank has assured the authority that they prioritize their customers and are dedicated to offering smooth services. Even though activities aimed to reach said stability will take more time, the goal is to add several improvement for the customers in the coming months," TTJA communicated.
Until such time, the bank offers customers having trouble with online banking other solutions and additional opportunities. For example, customers can make transfers of up to €300 over the phone or by visiting a branch office.
Luminor will regularly report to TTJA concerning progress improving the reliability of its online banking system.
The Financial Supervision Authority (FSA) said it has brought misdemeanor proceedings against Luminor over faults in the operation of its online banking environment. The watchdog promised to have a decision in the near future.
"The banking sector is based on trust. If a bank fails to show a customer their correct account balance over several consecutive days, the bank has violated that trust. This situation has brought Luminor FSA misdemeanor proceedings which could culminate in a penalty under certain circumstances," member of the authority's board Siim Tammer said.
Customers of Luminor Bank AS have been having trouble logging into their accounts and making payments for two years. The bank still does not offer the possibility of instant payments. Its online bank has been on the fritz since Luminor's creation after Nordea Bank's change of ownership.
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Editor: Marcus Turovski