FCA to Investigate TSB Bank for IT Issues during Migration

Formerly the Trustee Savings Bank, TSB Bank, a subsidiary of Spain’s Banco de Sabadell, has been given notice by the Financial Conduct Authority of the UK to provide an adequate response to the failed attempt to migrate TSB’s information to servers of Sabadell. The result has been serious issues for customers of the bank. In a letter dated the 30th of May, the FCA listed some of these issues being faced as having to endure large queues in branches, and even loss of access to their accounts.

Bank fraud has been the other biggest problem faced by affected customers of TSB Bank following this service outage, but the bank has failed to take appropriate action and make the necessary reimbursement to them. Some customers have had their accounts cleaned out by fraudsters but are still to be able to take any action against them due to a lackadaisical response from TSB to this crisis. To make matters worse, the bank has gone about trying to do damage control without revealing the true extent of the damages to begin with, a fact which compounds the existing problem even more.

Paul Pester, CEO of TSB Bank, will testify before the Treasury committee on Wednesday, 6th June, 2018. However, this time around, because it will be his second time testifying before the committee following his first testimony on this matter back in May, 2018, there will be some serious questions asked regarding, not just his handling of the problem so far, but also of his suitability to continue to lead TSB Bank into the IT-enabled future.