Page 211 - Flip Banks TG

the same potential barriers to expansion as other banks,

e.g. customer acquisition, and indeed lacked the advantages

of some other entrants, such as a purpose built, modern

core banking platform.

Part of Pester’s strategic thrust was to attract customer

accounts by providing a mobile delivery platform and app

whilst appearing as the U.K.’s local bank supported by a

strong branch system.

Costs in 2013 resulting from its shared IT platform with LBG

helped to constrain its profitability and the amount it could
afford to invest in customer acquisition particularly in this

formative period as it tries to acquire them from other

banks.

Migration of TSB to Banco de Sabadell IT platform could

save £100-160 million per year – if all went well.

Failure of the IT migration however, had grievous

consequences for Pester. The fault would appear to lie with

a lack of testing of a system that was haphazardly developed

at its parent company who believed it could be introduced

in record time to the new TSB structure.