Short-circuited: Banks have few options to recoup costs of outage

Here’s the article on American Banker

The recent wave of outages that hit websites and smartphone apps at BB&TTD Bank and Wells Fargo will cost them a pretty penny. But if you think those banks, or others beset by tech glitches, can just go sue their vendors or cash in insurance policies to pay for it all, think again.

A single hour of downtime can cost a company more than $100,000, according to an August 2016 report by the research firm Information Technology Intelligence Consulting.

But cost estimates can vary significantly by industry. When Amazon’s site went down for about 20 minutes in 2016, it probably cost the online retailer about $4 million, according to DigitalCommerce360. In contrast, the recent incidents at BB&T, TD and Wells lasted anywhere from a few days to nearly two weeks.

When Southwest Airlines experienced an outage in July 2016, it cost the airline between $54 million and $82 million in lost revenue.

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