Page 30 - TSB G Case Study

What TSB officials said was going on, and what customers
said on Twitter were vastly different.

Josep Oliu, chairman of TSB owners Sabadell, boasted on

Monday, as the bank went into meltdown: “With this

operation, Sabadell demonstrates its capacity of

technological management.”

By any measure TSB’s IT failure was the worst failure by a

British bank since RBS left its customers locked out of
their accounts in 2012 and it showed that branches

matter, despite the shift to online banking.

Furthermore, it became apparent that

as customers experienced online
Call
problems they turned to phoning TSB
Terminated
but TSB/Lloyds had degraded its call
center operations and they could not

cope with the number of calls.

By late July 2018 the IT failure had cost TSB £176 million

with further costs, as well as potential fines, still to

emerge. But although the crisis pushed the bank to its
first ever loss (£107.4 million), it nevertheless, avoided the

exodus of account holders that some had initially feared.

Around 26,000 customers switched their bank account
away from TSB following the fiasco, whilst more than

20,000 newcomers opened a new account or switched to

TSB in the second quarter. (23)