UK bank TSB claims to have finally managed to gain back control of its digital banking service this morning, after a core banking switch plunged the bank’s systems into chaos earlier in the week.

The bank, often regarded as a challenger to traditional lenders, was migrating from a legacy system, provided by Lloyds Banking Group. It’s new platform, Proteo4UK, was launched in December 2017 and stems from the bank’s Spanish parent Sabadell.

According to Fintech Futures, Proteo’s roots are in the Alnova retail core banking system supplied by Accenture. Proteo4Uk had been in development since mid-2015 and was predicted to save the bank £100 million ($139 million) a year.

Over the weekend of 21 April, TSB shut down a portion of its online banking services in preparation for the switch. Although TSB claimed that the switchover had occurred without problems, users began to report strange errors once the service was switched back on.

One customer told the BBC that he had been given access to someone else’s £35,000 ($48,870) savings account and £11,000 ($15,360) ISA. Others reported being able to see multiple accounts, including sort code and account number information.

Others have desperately been trying to contact the bank after accounts – including mortgages – have disappeared from their accounts.

TSB issued an apology, claiming that it had fixed the issue by the end of play on Monday. “We’re really sorry that some of our customers experienced problems accessing our mobile app and internet banking yesterday evening,” it wrote. “Both of these services are now up and running again.”

Despite this claim, scores of customers took to social media complaining that their accounts were still experiencing issues. TSB held fast to its claims, continually telling users: “Unfortunately, there are some intermittent problems affecting this service so please bear with us. We’re working as hard as we can to resolve this.”

One Twitter user wrote to the bank, stating: “As soon as I can get access to my own money I’m closing my accounts down. Not been able to get money since Friday but you can still access payments, TSB is the worst bank I’ve ever dealt with.”

Both the Financial Conduct Authority (FCA) and the Information Commissioner’s Office (ICO) have said that they are aware of the issues and have been in contact with TSB.

CEO of TSB, Paul Pester, took to Twitter in the early hours of the morning to reassure customers. “Our mobile banking app and online banking are now up and running. Thank you for your patience and for bearing with us,” he wrote.

“I’ve just resurfaced after 48 hours with my teams who have been working as hard and fast as they can to get our services back up and running. This isn’t the level of service that we pride ourselves on providing, and isn’t what our customers have come to expect from TSB, and for that I’m truly sorry.”

Nicky Morgan, chair of the Treasury Select Committee, wrote to Pester demanding answers from the bank over its meltdown. Sam Woods, Bank of England deputy governor and head of the Prudential Regulation Authority, described TSB’s problems as “self-inflicted wounds”.

by Alex Hamilton
Alex is Senior Reporter at IBS Intelligence, follow him on Twitter or contact him at:
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