TSB boss apologises for IT meltdown after Treasury Committee demands answers

25 April, 2018, 01:10 | Author: Corey Lynch
  • TSB has apologised to customers unable to access their mobile and online accounts after a system upgrade was supposed to have been completed

Amid reports of people losing out on property purchases or being stranded without money on the continent, senior politicians are now demanding answers.

A tweet from the bank's official Twitter handle said on Thursday: "We're planning an upgrade to our systems between 4pm Friday 20th of April until 6pm Sunday 22nd of April".

Mark Adams, regional vice-president for United Kingdom and Ireland at Veeam, claimed banks and other organizations must meet customers' heightened expectations about service levels and downtime.

The services should be working later today, he said.

Customers affected by the issues can complain to the bank.

TSB said on Monday that there were still "intermittent issues" with its services, but didn't go any further than that.

The bank has also reinvented itself as a challenger bank, with the latest technologies at the core of its strategy.

Have they sorted it out yet?

Others have been locked out of their accounts for days, making them unable to pay bills or withdraw cash from machines.

Nicky Morgan, chair of the British parliament's influential Treasury Select Committee, said customers deserved to know how they can expect to be compensated and that she would be writing to the FCA (UK finance regulator) on the matter.

What is TSB doing about all this?

Britain's TSB Bank, owned by Spain's Banco Sabadell (SABE.MC), faced continuing problems with its digital services on Tuesday as Royal Bank of Scotland's (RBS.L) Irish unit also reported an issue that led to salaries going missing from some accounts.

Why was it conducting an upgrade in the first place? The bank split from Lloyds Banking Group in 2013 and was sold to Sabadell in 2015 for £1.7bn.

When TSB split from Lloyds, it had continued to use a banking platform from its former owner while developing its own one. "Customers can rest assured that no one will be left out of pocket as a result of these service issues". Keep any receipts/paperwork, and visit a branch or call the bank and explain that you want to reclaim your money.

However, RBS is a much bigger bank, and this earlier incident - which did not include a planned upgrade - involved 10% of the United Kingdom population: at least 6.5 million customers.

Customers are reporting logging into their accounts and seeing obscene account balances, some in the red from anywhere from $83,000 to more than $13,000,000, although their accounts are in pounds.

Why do these banking meltdowns keep happening?

However there have been widespread reports of the non-availability of internet and mobile banking after the scheduled downtime came to an end.