Allied Irish Banks (AIB) has reached a settlement with Oracle in a €84 million (£71.8 million) case over the implementation of a software system that the bank claimed was “beset with serious technical problems”.
Details of the settlement were not disclosed.
In its court action against Oracle, AIB had alleged it had “wasted” money on the implementation of Oracle’s Flexcube retail banking software system in 2007.
It claimed that the system was so problematic that it has since returned to using its existing retail banking system.
Just 3,000 customers, out of an expected five million, had been moved onto the new platform between 2007 and March 2010, which was when AIB decided to stop working on the implementation.
AIB also rejected Oracle’s offer of an alternative product, describing it as “wholly unsuitable”.
The bank said Oracle had notified it of plans to discontinue development of the Flexcube software on IBM’s z/DB2 platform for all western banks, apart from AIB, in March 2010.
AIB said it could not accept the plan because Oracle had promised to share the costs of upgrades with other banks, which would no longer be possible.
Oracle declined to comment on the settlement.