Page 27 - TSB G Case Study

Tuesday 15 May –

It emerged that TSB had turned down an offer of
help from Lloyds Banking Group, its former owner,

in the early stages of the IT meltdown. Lloyds

contacted TSB on the morning of 23 April but TSB

declined the offer, despite the fact its customer

information was being transferred from a Lloyds

system to one designed by Sabadell. (32)

Sunday 20 May –

Some TSB customers were still unable to make
payments or access key accounts.

Wednesday 6 June –

Pester received a stinging rebuke from one of the

City’s top regulators. Andrew Bailey, the chief

executive of the Financial Conduct Authority, accuses

Pester of “portraying an optimistic view” of services

after the IT meltdown and says the bank failed to be
“open and transparent” about the scale of the

problems. The FCA is investigating the migration
jointly with the Prudential Regulation Authority. (32)

The problems of 20 April 2018 struck as TSB tried to

complete the final stage of its extrication from the rental

of its IT system from Lloyds. It failed. Five days later its

customers were still facing chaos and there was the ever-

present threat of the FCA, which has the power to fine

banks for system failures, taking action against TSB in the

form of a fine.