Citibank’s $500 Million UI Lesson

Gatekeepers: These tech firms control what’s allowed online
April 7, 2021
Electronic commerce: 4 tips to boost your business on the internet
April 7, 2021

Citibank’s $500 Million UI Lesson

Timothy B. Lee (via Hacker News):

A federal judge has ruled that Citibank isn’t entitled to the return of $500 million it sent to various creditors last August. Kludgey software and a poorly designed user interface contributed to the massive screwup.

[…]

However, Revlon was in the process of refinancing its debt—paying off a few creditors while rolling the rest of its debt into a new loan. And this, combined with the confusing interface of financial software called Flexcube, led the bank to accidentally pay back the principal on the entire loan—most of which wasn’t due until 2023.

[…]

The subcontractor thought that checking the “principal” checkbox and entering the number of a Citibank wash account would ensure that the principal payment would stay at Citibank. He was wrong. To prevent payment of the principal, the subcontractor actually needed to set the “front” and “fund” fields to the wash account as well as “principal.”

Citibank’s procedures require that three people sign off on a transaction of this size. In this case, that was the subcontractor, a colleague of his in India, and a senior Citibank official in Delaware. All three believed that setting the “principal” field to an internal wash account number would prevent payment of the principal.

Source

Comments are closed.