May 25, 2018 / 12:18 PM / 24 days ago

Customers of TSB bank hit with further IT outage

LONDON (Reuters) - Customers of Britain’s TSB bank complained on Friday they were unable to access its banking app, a little more than a month after the lender suffered one of the country’s worst ever computer systems outages following a botched IT migration.

FILE PHOTO: A sign is displayed outside a branch of the TSB bank in central London March 12, 2015. REUTERS/Neil Hall

Last month the bank faced criticism from lawmakers over the outage and faces as-yet unknown costs from compensating aggrieved customers.

“We’re aware that our mobile app is currently unavailable for some customers – we’re really sorry for the inconvenience this may cause,” a spokeswoman for TSB said.

TSB, bought in 2015 by Spain’s Sabadell Bank (SABE.MC), directed customers to its website instead, which it said is working normally.

The bank had on the weekend of April 21-22 been migrating to a new IT system called Proteo developed by Sabadell when its problems began, leaving up to 1.9 million customers locked out of its services and unable to pay bills or make essential purchases.

Rushed testing and poor communication between TSB and its Spanish parent prior to the migration contributed to the subsequent problems, Reuters reported on May 2.

The bank has said that no customer will be left out of pocket as a result of its problems, a promise that could prove costly as British newspapers have reported some customers being robbed of thousands of pounds by fraudsters taking advantage of the crisis.

TSB chief executive Paul Pester is set to lose millions of pounds worth of bonuses linked to the software migration project as a result of its failings, and has faced harsh criticism from lawmakers over his handling of the crisis.

Reporting By Lawrence White; Editing by Elaine Hardcastle

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