show image

TSB CEO vows to ensure no customers are left out of pocket after IT meltdown

TSB’s chief executive Paul Pester has vowed that none of the lender’s customers will be left out of pocket as a result of its disastrous IT migration.

The financial giant’s digital platform’s have been largely out of action since Saturday and only came back online in the early hours of Wednesday morning.

Customers reported being locked out of the platforms and unable to make payments. In some cases, those who could log in were reportedly given access to other customers’ accounts.

The fiasco has courted attention from the Financial Conduct Authority and the Information Commissioner’s Office, and been described as an “IT meltdown” by the chair of the Treasury select committee, Nicky Morgan.

In a series of tweets posted on Tuesday, Pester said he was “deeply sorry” for the issues customers were facing and that they can “rest assured that no one will be left out of pockets as a result” of the bungled migration.

He tweeted again at 3:40am on Wednesday morning to confirm that the company’s mobile banking app and online banking services were back online, although access to accounts is being restricted to prevent the servers from crashing.

TSB has been dependent on the digital platforms of its former owner Lloyds since the two companies split in 2013. It was due to upgrade to a new system over the weekend and had warned customers that services would be offline until 6pm on Sunday. However, it was forced to take its new system offline for almost all of Tuesday to implement fixes.

In a statement, Nicky Morgan said: “The reports of unauthorised transactions, access to other customers’ accounts, and failures of in-branch services have all the hallmarks of an IT meltdown.”

“This is yet another addition to the litany of failures of banking IT systems,” she added. “Potentially millions of customers could be affected by uncertainty and disruption.”