MPs pile pressure on TSB CEO in wake of IT failure

MPs from the Treasury Committee have “lost confidence” in the chief executive of TSB following the bank’s handling of its IT failure,.

MPs pile pressure on TSB CEO in wake of IT failure

The migration of customer information to a new system in April affected millions of customers across the UK and left users unable to log in to their accounts, make transactions and, in some cases, able to see information about other customers.

The issues stemmed from when TSB split from Lloyds Banking Group. It continued to rent a banking platform from Lloyds while it constructed its own, Proteo4UK.

Appearing before the Treasury Committee in April, Paul Pester said login success rates on the TSB’s app and website were around 95 percent, a typical level for most banks. However, some TSB customers are continuing to experience problems accessing their accounts, weeks after it sought to make the switch.

Last week, Pester admitted 1.9 million TSB customers had been affected by the problems, while 1,300 accounts were hit by fraudulent activity.

As a result, chair of the Treasury Committee, Nicky Morgan MP, has written to TSB chair, Richard Meddings, calling on him to “give serious consideration as to whether Dr Pester’s position as chief executive of TSB is sustainable”.

“The committee has lost confidence in his ability to provide a full and frank assessment of the problems at TSB, and to deal with them in the best interests of its customers,” she said in the letter. “It is concerned that, if he continues in his position, this could damage trust not only in TSB, but in the retail banking sector as a whole. I ask that the board consider the committee’s view as a matter of urgency.”

Following the letter, Morgan said: “Since the IT problems at TSB began, its public communications have often been complacent and misleading. This tone has been set from the top – by Paul Pester – and whether intentionally or not, he has not been straight with the committee and TSB customers. The Treasury Committee, therefore, has lost confidence in Dr Pester’s position as chief executive of TSB.”