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TSB takes another £36m hit related to botched IT migration
TSB has been stung for another £36m in costs related to its botched IT migration last year, but managed a profit in its latest six monthly results
TSB’s botched IT migration in April last year has cost the company an additional £36m in its latest financial results.
In its results for the last six months, TSB reported a profit of £21m compared to a loss of £107m in the same period last year.
TSB said it took a charge of £36m during the period, which is on top of the £330m it paid in relation to the migration problems last year, when it posted a loss of £105m.
The IT problems started in April, when TSB moved millions of customer accounts from the Lloyds Banking Group IT system that hosted them to a new banking platform, known as Proteo4UK, from TSB’s Spanish parent Sabadell. Proteo4UK is an in-house banking platform based on Sabadell’s Proteo system.
Problems included customers being locked out of their accounts, others reporting money disappearing from online accounts – and some were even able to see other customers’ accounts.
The migration to Proteo4UK was intended to help the bank cut costs and compete in the digital banking age.
In the latest results, TSB CEO Debbie Crosbie said the new banking platform is improving the bank’s performance.
Read more about the TSB IT migration disaster
- The Information Commissioner’s Office and the Financial Conduct Authority are assessing the IT meltdown at TSB that led to some customer accounts being seen by other customers.
- TSB’s very public IT problems will send shivers down the spine of IT teams at large banks that are yet to migrate to new core banking systems.
- TSB customers are still experiencing problems using online and mobile banking services after almost a week of disruption.
“We are beginning to see the benefits of our new platform for our customers, including a faster mortgage applications process and the introduction of new digital capabilities such as identity verification on our mobile app.”
Crosbie replaces Paul Pester after the former CEO stepped down in the wake if the IT meltdown.
TSB recently named Mark Curran as director of technology transformation to head up the restructuring of its IT operations. He is heading a project to transfer control of IT to an internal team, from the tech subsidiary of Sabadell.
