TSB CEO quits following second IT crisis

By David Beach | 4 September 2018

TSB Bank has announced that CEO Paul Pester is stepping down from his position after seven years. Richard Meddings, current non-executive chairman, takes on the role of executive chairman with immediate effect.

"Although there is more to do to achieve full stability for customers, the bank’s IT systems and services are much improved since the IT migration. Paul and the board have therefore agreed that this is the right time to appoint a new CEO for TSB," Meddings said in the announcement

Leaving 1.9m customers unable to access their accounts in April 2018, the migration away from Lloyd's rented systems towards Sabadell's new Proteo4UK system - TSB's parent company - has been anything but smooth.

Dubbed the 'IT crisis' and 'IT fiasco', the botched system migration was most likely down to rushed and inadequate testing, according to chief scientist at CAST who took a forensic eye the event.

On September 3, it was announced that TSB's online and mobile banking services were disrupted for thousands of customers, forcing the bank to apologise. 

“A broken authentication system has an instant impact on customer loyalty," says Andy Cory, identity management services lead at KCOM, commenting on the second IT crash. "If a business cannot provide easy access to its services without sacrificing security, it only has itself to blame when its users desert."

 

 

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