TSB online banking meltdown drags into a second week

TSB’s IT meltdown has continued into a second week, with some customers complaining they cannot access their accounts or make payments.

One of the worst crises in British banking was caused by a botched IT migration and has affected up to 1.9 million mobile and online banking customers at the Spanish-owned bank. On Thursday, TSB called in experts from IBM and asked them to fix the problems by Saturday.

In its most recent online updates, TSB said it was continuing to work hard to fix the problems, and a spokeswoman confirmed that the situation was the same on Monday.

Warning signs for TSB’s IT meltdown were clear a year ago – insider

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TSB (@TSB)

We have made Internet banking and Business banking available again but some customers may still have difficulties accessing and using these services. We are working hard to address these issues. Our mobile app is also available.

April 29, 2018

Several TSB customers took to social media to report ongoing problems on Monday morning. The bank’s beleaguered chief executive, Paul Pester, has promised that customers will not be left out of pocket.

Michael Grimmett (@MichaelGrimmett)

@TSB Today is the day that ALL my remaining care staff are supposed to be paid, but I keep being told that my password is too long or too short whenever I try and make a payment.

I have a speech impairment which means that telephone banking is not an option.

April 30, 2018

Michelle Buchan (@M_Buchan)

🖐 that’s correct – still having difficulty accessing account 🙄 https://t.co/SD2mcCvsqY

April 30, 2018

Moving customers from the Lloyds legacy systems to a new database was expected to save the bank’s owners, Sabadell, £100m a year. Now the bank faces having to pay out a similar amount in compensation to customers and potential fines by the Financial Conduct Authority, which dispatched a team to TSB to monitor the situation closely.

Pester has refused to answer questions about his £1.6m bonus, which is due to be paid once the IT migration is complete, along with bonuses for 30 other senior TSB staff.

The bank reiterated that the decision on bonuses lies with TSB’s board remuneration committee, and no decision has been made.