Bank of England's RTGS Project Sets New Standard for Public Sector Tech

In a striking departure from its usual diet of project failures and overspending, the Public Accounts Committee has held up the Bank of England's technology transformation as a rare example worth emulating across the public sector. The committee's recent report on the RTGS system implementation challenges government agencies to "learn and incorporate lessons from an all too rare positive example of public sector digital transformation."

The RTGS modernization program, which went live in April 2025 after beginning planning in 2016, handles sterling payment settlements worth around £790 billion daily. Its successful completion stands in stark contrast to other large-scale government digital projects that have become notorious for delays and budget overruns.

A Rare Success in a Landscape of Failure

The PAC's praise comes at a time when public sector technology projects have faced mounting criticism. The Emergency Services Network, for instance, is about 12 years behind schedule and £3 billion over budget. Meanwhile, the National Savings & Investments' digital overhaul has already exceeded its original budget by £1.3 billion and is likely to be four years late, earning the PAC's description as a "full spectrum disaster."

What makes the Bank of England's approach different? The report highlights several key factors:

1. Extended Planning Phase: The organization dedicated two full years to understanding scope and objectives, developing a 2017 "blueprint" that established five key priorities for the new system.

2. Inclusive Procurement Process: Rather than simply accepting the winning bidder's proposal, the Bank drew on ideas from all bidders and included a practical exercise where unsuccessful bidders were paid to design and build a simplified payment system.

3. Dedicated Procurement Team: The program had its own specialized procurement team that helped develop contracts and manage them throughout the process.

4. Collaborative Culture: The Bank created an open "no surprises" culture with strong collaboration between business, technology, and external specialists.

5. Knowledge Retention: Crucially, the Bank retained intellectual property for the system and has transferred day-to-day operations to an in-house team.

Technical Excellence Meets Strategic Vision

The technical aspects of the RTGS modernization demonstrate a thoughtful approach to legacy system replacement. The previous platform relied on aging mainframe technology that became increasingly difficult to maintain due to specialist hardware demands and a shrinking skills pool.

The new system, built with Accenture as technical delivery partner from 2020, maintains internal hosting while adopting cloud-native technologies for greater flexibility. This hybrid approach allowed the Bank to modernize without immediately exposing the critical national infrastructure to public cloud risks.

"We embedded people in the Accenture team really early on, and we've grown that capability throughout the time as well," explained Nathan Monk, the Bank of England's chief information officer, during a PAC hearing in March. This knowledge transfer strategy appears to have been instrumental in ensuring long-term operational capability.

Lessons for Government Digital Transformation

The PAC's recommendations extend beyond mere praise. The committee has challenged the Cabinet Office, the Department for Science, Innovation and Technology, and the National Infrastructure and Service Transformation Authority to learn from this example.

Specifically, the PAC recommends:

• Updating guidance to reflect the distinct challenges of digital programs
• Ensuring adequate time is taken before contracts are let to properly understand business and technical complexity
• Engaging technical specialists early to enable realistic planning and costing

These recommendations acknowledge what many in the tech community have long argued: successful digital transformation requires more than just technical expertise—it demands strategic patience, proper procurement processes, and organizational commitment to knowledge retention.

Counter-Perspectives and Implementation Challenges

While the RTGS project offers valuable lessons, questions remain about its applicability to other government contexts. The Bank of England operates with a degree of autonomy and specialized expertise that most government departments cannot match. Additionally, its role as a financial institution means it has different risk tolerances and operational requirements than, say, healthcare or education departments.

Some industry observers have also noted that the project's £431 million price tag, while successful by public sector standards, represents a significant investment that may not be replicable across all departments given current fiscal constraints.

Furthermore, the Bank's relationship with Accenture differs from typical government contractor arrangements. The fact that bank technical staff were embedded within Accenture teams during development created a level of collaboration that may be difficult to achieve in more traditional procurement relationships.

Despite these challenges, the PAC's recognition of the RTGS project's success sends an important message to the public sector: digital transformation doesn't have to be synonymous with failure. By prioritizing planning, inclusive procurement, and knowledge retention, government agencies can potentially avoid the pitfalls that have plagued so many previous initiatives.

The question now is whether other departments will embrace these lessons or continue down the familiar path of ambitious but poorly executed digital projects. The Bank of England has demonstrated that success is possible—but replicating it will require more than just technical solutions; it demands a fundamental shift in how government approaches digital transformation.