Paul Pester has stepped down as chief executive of TSB in the wake of a catastrophic IT meltdown earlier this year.
More than a thousand customers were defrauded and millions more were left locked out of their accounts in April after the lending giant migrated to a new website and app.
Pester had faced mounting pressure to step down after MPs claimed in June that he had failed to make a full and frank assessment of the problems at the bank.
Nicky Morgan, the chair of the treasury select committee, said she and her fellow MPs were concerned that Pester’s continued leadership “could damage trust not only in TSB, but in the retail banking sector as a whole”.
In a statement issued on Tuesday, Richard Meddings, TSB’s non-executive chairman, acknowledged that there is “more to do to achieve full stability for customers” and said now “is the right time to appoint a new CEO”.
The statement also confirmed that Meddings would be taking on a new role as “executive chairman” to oversee the bank’s operations until a new CEO is appointed.
In April, a preliminary investigation by IBM found that the lending giant may have “failed to properly test its systems” before migrating its customers over to the new digital platforms.
“Performance testing did not provide the required evidence of capacity,” the report suggested. “IBM has not seen evidence of the application of a rigorous set of go-live criteria to prove production readiness.”
A TSB spokesperson played down the findings at the time, saying that it was based on observations to date, which were “produced after only three days of engagement with TSB” and that the content is “now very much out of date”.