TSB faces growing criticism of 'rushed' bungled IT upgrade

TSB is facing mounting criticism for rushing through a full-scale IT system switch of 1.3 billion customer records in one go, leading to a meltdown and more than a week of outages to vital banking systems.
The challenger bank opted for a high risk “big bang” approach to the complex migration from the system it rented from Lloyds to one run by Spanish parent Sabadell.
“This flew in the face of best practice. When Lloyds and HBOS merged, they did multiple migration events – mortgages, cards, personal loans were split up – and moved batches of customers,” a City source said. “The more you split things up the easier it becomes to reduce the risk.”
TSB faces growing criticism of 'rushed' bungled IT upgrade

About a million people were unable to access mobile and internet banking services this week

Andrew Matthews/PA Wire
ABout a million TSB customers were still unable to access online and mobile banking services on Friday. 
Scrutiny is likely to turn to the role of City watchdogs the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) in overseeing the bungled TSB system switch.
TSB chief Paul Pester has said they were involved in plans “from day one”.
An FCA spokesman said: “It is not our role to give our approval for this type of project”. It said it would make an assessment “focusing on the impact on customers”. Its sanctions include unlimited fines.
The PRA declined to comment.
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