Page 10 - TSB G Case Study

management consulting, principally at McKinsey &
Company. (3)

Commenting on TSB and its way forward Pester, said the

bank was “absolutely on track” What he and TSB was not
about was:

Focusing on short-term profit

Emulating the ‘big five’ British banks

Growth by acquisition.

Rather the bank would offer something new by investing

in a number of properties while attracting new customers

and aggressively moving into lending to small businesses.

This against a lending market environment where,

through a lack of competition in the last 10 years, the ‘Big

Five’ had little incentive to compete. (4)

In 2016 TSB acquired £3.3bn of former Northern Rock

mortgages, whilst aiming to migrate its IT system,

inherited from of its former owner Lloyds, to Sabadell of

which Pester said:

“Banking needs to be exposed to the full force
of competition. Only then will consumers really

start to see change in an industry that has been
stacked against them for far too long.” (5)