You are here: Home - News -

Brokers escape TSB system ‘meltdown’ but consumer outage continues

by:
  • 24/04/2018
  • 0
Intermediaries have been reporting service disruption at TSB for around a week but the broker IT processing systems are stable, unlike the consumer-facing platform, which is still down on day four.

TSB CEO Paul Pester tweeted that he hopes the consumer-facing mobile app and banking services will be back up again later this afternoon.

Brokers say intermediary service went ‘down the pan’ about a week ago and many fear the promised return of online product retention through brokers due back up in May could also be derailed.

On the 3 April, TSB confirmed brokers could no longer complete product transfers via its systems for two months, so customers would have to go direct to the lender until the end of May.

Another national broker said TSB had identified a number of potential issues last week involving the migration of mortgage cases not yet at offer which were set up on the old system – but were putting in place ‘work arounds’ to try to mitigate disruption.

TSB was unavailable to comment at time of writing.

Conor Murphy, CEO at Capricorn Financial said all lenders get service issues from time to time and the net issue is that service to the consumer suffers.

“Consumers are bearing more of the brunt than we are right now,” he added.

 

Treasury Select Committee rage

 

As a result, Treasury Select Committee chair Rt. Hon Nicky Morgan MP has demanded answers this morning over consumers barred from current account and banking services as the planned three-day IT outage overran.

Earlier this month, TSB informed customers that during a planned upgrade to its systems between 4pm on Friday 20 April and 6pm on Sunday 22 April, services such as online banking may not be available, but there have been widespread problems reported after the scheduled downtime.

There have also been reports that TSB customers could access the accounts of other TSB customers, including their account numbers, sort codes and transaction histories, and possibly having the ability to perform actions on these accounts, including transferring money.

Morgan has written a letter to the TSB CEO to find out what has gone wrong, the extent of the failure and potential compensation for customers and demands a response by Friday 27 April.

Morgan said: “This is yet another addition to the litany of failures of banking IT systems. Potentially millions of customers could be affected by uncertainty and disruption.

“It simply isn’t good enough to expose customers to IT failures, including delays in paying bills and an inability to access their own money.

“Warm words and platitudes will not suffice. TSB customers deserve to know what has happened, when normal services will resume, and how they can expect to be compensated.”

Morgan said she will also involve the regulator in due course.

 

Twitter apology

 

CEO Pester posted a series of tweets three hours ago to apologise and reassure consumers:

 

 

TSB broker service

 

The bank is switching 1.3bn customer records across to its new platform, in what it says is one of the biggest ever bank migrations in Europe.

In an online broker platform survey by Dock9 last year, Tesco, Vida and TSB topped the table in terms of user experience.

TSB launched to the intermediary market in January 2015, after rejoining the high street in September 2013. In the first six months of operation in the broker market it advanced £665m of gross lending while receiving mortgage applications of £1.9bn.

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Robert Sinclair
Bank of England rate rise could mean fall in borrower stress tests – AMI

An increase in the Bank of England of base rate could ease the pressure on lender stress-testing, according to a...

Close