TSB computer meltdown to be investigated by financial regulator

Published by Hannah Nemeth on 06 June 2018.
Last updated on 06 June 2018

TSB

An investigation into the computer failure that left up to 1.9 million TSB customers without access to the bank’s online banking and mobile apps, has been launched by the Financial Conduct Authority (FCA).

At the end of April, TSB introduced a new IT system, which left customers struggling to make basic transactions or access their accounts online.

Andrew Bailey, chief executive of the FCA, says that when giving evidence to the Treasury Committee in May, Paul Pester, chief executive of TSB, “was portraying an optimistic view of the services” and that “greater caution would have made sense”.

Writing in response to a letter last month from the Nicky Morgan MP, chair of the Treasury Committee, Mr Bailey adds that Dr Pester could “have shared more detail [on the incident] with the committee”.

He goes on to say that the FCA has been “dissatisfied with TSB’s communications with its customers”, adding that the meltdown could leave customers not just with a lack of trust in TSB but in the “banking sector as a whole”. As such, the regulator has launched an investigation into the bank’s IT problems. 

Commenting on the correspondence, Mrs Morgan says: “I am deeply concerned by TSB’s poor communications about the scale and nature of the problems it has faced; by its response to customer fraud; and by the quality and accuracy of the oral and written evidence provided by Dr Pester to the committee.”

Dr Pester and other TSB board members are due to give further evidence about the ongoing problems faced by TSB customers to the Treasury Committee later today.

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