As reliable as night turns day, a TSB online glitch has reared its head on locked customers out of accounts.
The bank’s long suffering customers could not log into their online or mobile banking accounts. An error message said customers should visit a branch to perform banking activities and the services would be back later in the day. The TSB online glitch problem was resolved around 11am UK time.
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A rough time for TSB
TSB online banking now has a long and repetitive history of outages. It has suffered months of outages after it attempted to upgrade its back-end technology. It was planning to move from the old Lloyds system to the one of its new owner, the Spain-based Sabadell.
Three executives are leaving the bank following the upgrade. However, it was said that their departures were planned before the outages.
April 2018 saw the first outage and data breach. Customers were able to see others’ bank details. One customer reported that he could view other customer’s accounts, totalling more than £20,000 ($28,000). One customer even had £13,000 wrongly credited to his account.
This was followed by another outage in July. And another in September.
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By GlobalDataHowever, TSB is not the only bank to suffer recent issues. Barclays online, telephone, and mobile banking was down earlier this month.
In addition, NatWest customers suffered a similar fate.
For fiscal 2018, TSB reported a pre-tax loss of £105m compared with a profit of £163m the previous year.
The 2018 TSB earnings represents the first time that the UK subsidiary of Spain’s Banco Sabadell reports a loss.
According to TSB, it has already spent over £150m on customer compensation and foregone charges arising from its IT meltdown. And that figure is set to rise further as around 20,000 customer complaints remain outstanding.
The first and largest TSB outage occurred over the weekend of 20-22 April. The TSB migration from former owner Lloyds Banking Group core banking platform to a new system failed miserably.
In Q318, TSB lost a net 16,000 switchers in current accounts. Notably, this is a complete reversal of TSB compared with 12 months ago. For example, in the first 6 months of 2017, TSB attracted a net gain of over 31,000 switches.
