The United Kingdom’s Trustee Savings Bank (TSB) was recently purchased by the Spanish banking group Sabadell. Last week, TSB attempted to do a major IT upgrade and bring its online banking systems onto the same software and system used by Banco Sabadell.
The rollout did not go quite as expected, and TSB seems to have done minimal testing at best. They also failed to provision for going back to the old system in the event of rollout problems.
The upgrades started Friday, April 20. Ten days later, many of TSB’s millions of customers still aren’t able to access their bank accounts:
Banco De Sabadell SA’s U.K. subsidiary TSB Banking Group said half of its online users were unable to access their accounts Sunday, a week after the firm’s attempt to shift 5 million customers to a new banking platform proved disastrous.
“Internet banking is currently operating at around 50 percent of capacity,” a bank spokeswomen said. “For every 10 customers who try to access our internet banking, five will be able to access this service.”
An effort by the bank to upgrade systems for its 1.9 million active online and mobile customers failed a week ago, leaving hundreds of thousands unable to access their accounts. TSB tried to switch 5 million customers and 1.3 billion records to software run by its Spain-based parent Banco De Sabadell from a system operated by Lloyds Banking Group Plc, which sold TSB three years ago. The firm said that mobile banking was now operating at over 90 percent of capacity.
Sabadell fell 6.6 percent last week as the bank struggled to resolve the access issues. The shares are down 8 percent in the past year.
The system collapse could result in TSB paying millions in fines and compensation. TSB will consider claims from non-TSB customers who suffered losses, Chief Executive Officer Paul Pester told the Sunday Times.