Halifax delays IF launch

Intelligent Finance (IF), the Halifax's much-hyped new internet and telephone bank, was yesterday forced to postpone its start-up - due today - after identifying a fault in its computer systems which cast doubt over its ability to cope with the expected surge in demand. IF is the latest online bank to fall foul of technical problems, and the delay is a severe embarrassment for the venture, which had arranged for Gordon Brown to open its new Edinburgh call centre today. Advertisements for the bank were about to air on television, featuring the Fatboy Slim hit Right Here, Right Now - a choice of anthem now looking inappropriate. Going live has been put back to some time in August, although IF's chief executive, Jim Spowart, admitted he was unable to give a cast-iron guarantee that it would go live even then. During the course of testing the bank's systems and carrying out live simulations, experts identified an intermittent fault which caused the system to grind almost to a halt. Mr Spowart said the fault cast doubts over the bank's ability handle the expected high levels of demand. The bank had been carrying out tests based on 15,000 calls a day - the number of people who have already registered. "It [the system] slowed right down. We decided we were clearly not going to have time to fix this before we launch," he said. "It is embarrassing but we think it is better to disappoint customers than to anger them should we have had any problems. We simply cannot launch until we are sure we can handle the anticipated levels of customer activity." Testing will continue over the next few weeks. The delay means the loss of a month's sales. Halifax is investing ?120m over two years in IF, including ?10m on an advertising push which started earlier this month with a national billboard campaign. Only last month IF was still assuring customers that its "cutting-edge systems" would be able to cope with the expected large volume of applications. It was quick to highlight the problems experienced by Abbey National's rival online offering, Cahoot, which was brought to its knees by a glitch on its start-up day a month ago. Mr Spowart said that, while the plan was to go live next month, "we are not going to go until we are ready". The bank is contacting all those who have registered during recent weeks to explain the situation and apologise for any inconvenience. Mr Spowart said that the problem "would not have put customers at risk". IF was due to open for telephone business today and for internet applications 10 days later. It decided on a two-stage start-up following Cahoot's technical problems, and said it had made a "substantial investment in the most advanced technology available" to ensure it could meet the pent-up demand for its products, which include a current account, flexible mortgage, savings account, credit cards and personal loans. The phone banking operation is supported by 1,200 call centre staff. The Livingston and Edinburgh operations are said by IF to add up to the largest integrated call and web centre in Europe.