Bypass Surgery
As I recently blogged in Mobile Bypass Surgery For Banks over on Tomorrow’s Transactions, where the more technical side of my financial blogging occurs these days, the recent system outages at Royal Bank of Scotland, where customers were once again unable to access their own money, are just the tip of an industry-wide problem. But that’s only half the story, because technology failures are always mediated by psychological ones.
As we know well enough – the Big List of Behavioral Biases is testament to the issue - individuals suffer from a vast range of behavioral issues, with predictably depressing financial consequences. But similar problems also afflict corporations, because managers suffer from the same issues as investors, and the results can be catastrophic for investors.
