Prolonged IT Crisis At TSB Results In Loss Of 16,600 Customers

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Because of an IT fiasco that was experienced by TSB that prevented approximately 1.9 million people from having access to their bank accounts resulted in the loss of more than 16,600 customers to rivals between the period of April and June.

The crisis resulted in TSB announcing a pre-tax loss amounting to £107.4 million during its half-year results last July, down from the £108.3m profit that it reported during the same period last year.

The said IT meltdown happened after a botched migration of 5.2 million customer records from Lloyds Banking Group, its former owner, to a new system that belongs to Sabadell, its current owner.

The customers of the bank have continued to experience some sporadic IT issues.

Paul Pester, the chief executive of the bank, stepped down from his position last September after months of criticism. Back in June, the Treasury select committee said that the board should give “serious consideration as to whether his position was sustainable.”

The most recent figures were provided by BACS, a payments company. It revealed the number of customers who are using the Current Account Switching Service of the government.

A spokesperson from the TSB stated: “The number of people who use the Current Account Switching Service is only part of the total picture. During the three months in question, we actually saw more than 20,000 customers either open a new bank account at one of our branches or switch their account to us using the CASS system.”

A separate poll that was conducted by Money Saving Expert last August discovered that TSB had dropped from the fourth to the 11th place in a banking customer service poll after the online disaster.

The figures revealed more positive results for Nationwide, which was able to gain approximately 34,577 customers over the period.

Fintech banks Starling and Monzo, who have only recently begun being recorded by BACS, was able to attract 1,737 and 2,702 customers respectively over the three months.

Both Starling and Monzo have lured customers away from the major brands through their simple mobile apps and competitive foreign exchange rates.