The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) fined the bank a total of £48.65m for “operational risk management and governance failures” including outsourcing relating to the bank’s IT upgrade programme.
In April 2018, TSB updated its IT systems and migrated customer services on to a new platform. While the data itself migrated successfully, the platform immediately experienced technical failures resulting in significant disruption to the continuity of TSB’s banking services, including branch, telephone, online and mobile banking.
All of TSB’s branches and a significant proportion of its 5.2 million customers were affected by the initial issues.
Some customers continued to be affected by some issues and it took until December 2018 for TSB to return to business-as-usual. TSB has paid £32.7m in redress to customers who suffered detriment.
The regulators’ found that TSB failed to organise and control the IT migration...