TSB’s IT meltdown has entered its second week, with some customers still unable to access their accounts or make payments. One of the worst crises in British banking was caused by a botched migration of data from one IT system to another and has affected up to 1.9 million mobile and online banking customers at the Spanish-owned bank. On Thursday, TSB called in experts from IBM and asked them to fix the problems by Saturday. However, in its most recent online update, TSB said it was continuing to work hard to fix the problems, and a spokeswoman confirmed the situation was the same on Monday. Several TSB customers took to social media to report continuing problems on Monday morning. The bank’s beleaguered chief executive, Paul Pester, has promised that customers will not be left out of pocket. Iona Bain, the founder of the Young Money Blog, tweeted: Moving customers from the Lloyds legacy systems to a new database was expected to save the bank’s owners, Sabadell, £100m a year. Now the bank faces having to pay out a similar amount in compensation to customers and potential fines by the Financial Conduct Authority, which dispatched a team to TSB to monitor the situation. Pester has refused to answer questions about his £1.6m bonus, which is due to be paid once the IT migration is complete, along with bonuses for 30 other senior staff. The bank reiterated that the decision on bonuses lay with the remuneration committee of the TSB board, and no decision had been made.
TSB customers are experiencing its second week of disruption, after a failed migration of data to an upgraded IT system prevented access to accounts, along with the ability to make payments, affecting up to 1.9 million mobile and online banking customers. The bank has asked IBM to fix the problem by 5 May. The Financial Conduct Authority (FCA) has sent a team to TSB to monitor the situation. The bank faces potential fines and compensation pay-outs. CEO Paul Pester refused to comment about his bonus, and those due to senior staff members once the IT migration is complete.