Faulty tech upgrade earns British bank £48.7m in fines
Two regulators punish TSB for immediate problems after migration went wrong
20 December 2022 - 10:51
byTom Wilson and Jesús Aguado
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London/Madrid — British lender TSB has been fined £48.65m over a botched IT platform migration in 2018, UK regulators said on Tuesday.
The IT upgrade “immediately experienced technical failures”, the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) said, resulting in “significant disruption” to TSB’s in-person, online and phone banking services.
The regulators found that TSB failed to organise and control the migration adequately, and failed to manage operational risks from its IT outsourcing setup.
TSB was fined £29.75m by the FCA and £18.9m by the PRA, receiving a 30% discount by agreeing to settle the issue, the statement said.
In a statement, CEO Robin Bulloch apologised to consumers hit by problems during the TSB upgrade.
“We worked hard to put things right for customers then and have since transformed our business,” he said. “Over the past four years, we have harnessed our technology to deliver new products and better services for TSB customers.”
TSB’s Spanish owner, lender Sabadell said in a statement that the settlement will be accounted for by TSB in the fourth quarter.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Faulty tech upgrade earns British bank £48.7m in fines
Two regulators punish TSB for immediate problems after migration went wrong
London/Madrid — British lender TSB has been fined £48.65m over a botched IT platform migration in 2018, UK regulators said on Tuesday.
The IT upgrade “immediately experienced technical failures”, the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) said, resulting in “significant disruption” to TSB’s in-person, online and phone banking services.
The regulators found that TSB failed to organise and control the migration adequately, and failed to manage operational risks from its IT outsourcing setup.
TSB was fined £29.75m by the FCA and £18.9m by the PRA, receiving a 30% discount by agreeing to settle the issue, the statement said.
In a statement, CEO Robin Bulloch apologised to consumers hit by problems during the TSB upgrade.
“We worked hard to put things right for customers then and have since transformed our business,” he said. “Over the past four years, we have harnessed our technology to deliver new products and better services for TSB customers.”
TSB’s Spanish owner, lender Sabadell said in a statement that the settlement will be accounted for by TSB in the fourth quarter.
Reuters
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