TSB boss Paul Pester among top execs to face MP grilling over IT chaos
Top TSB execs are to be hauled in front of an influential parliamentary committee on Wednesday, it was announced this afternoon.
The Treasury Committee will quiz chief executive Paul Pester, chairman Richard Meddings and an as-yet un-named representative from TSB's Spanish owner Sabadell.
The move follows committee chair Nicky Morgan writing to Pester last Tuesday, demanding to know answers to questions on TSB's embarrassing IT meltdown.
Read more: TSB online banking woes continue into second week
Earlier this morning, TSB said its online banking services are running at half capacity, more than a week after the challenger bank first attempted to migrate onto off a costly legacy platform to its own systems.
“The Treasury Committee is extremely concerned by the problems at TSB, and by the apparent miscommunication to customers about the extent and nature of these problems," said Morgan.
Its been reported that services such as online banking have been down for some TSB customers for over a week. Many individuals and businesses will have made arrangements for the planned outage, but not for the additional time that the systems have been unavailable.
“We will take evidence from TSB and Sabadell representatives to find out how they got into this mess, who is responsible, and how they are putting it right.”
Read more: Now Lloyds has online banking issues which it is 'working hard' to resolve
Emergency works
The problems for the high street challenger bank began last week when an already delayed move from former owner Lloyds to new computer systems caused significant issues for thousands of customers. After initially reporting the move had gone to plan, the bank was forced to carry out emergency works throughout last week, eventually calling in consultants from computing giant IBM to help.
Moving from Lloyds' to TSB's own platform was expected to save the firm around £100m a year. However, the bank is now facing a bill of £100m to clear up the bungled changeover – costs which could well mount in the weeks to come.
Pester's response to TSB's problems has attracted widespread criticism with some parties suggesting not only it is highly unlikely he will get his 2017 bonus but he could be forced to step down.
Read more: TSB internet banking still running at half capacity
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