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Bloomberg
UK regulators have fined TSB Bank Plc £48.7 million ($59.2 million) for risk management and governance failures after technical failures in the lender’s IT system resulted in customers being unable to access banking services.
The lender failed to organise and control an April 2018 IT upgrade adequately, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority said.
Technical failures immediately after the switch to a new platform impacted all of TSB’s bank branches and a “significant proportion†of its 5.2 million customers, according to the release. It took until December 2018 for the bank to return to business-as-usual.
“The firm failed to plan for the IT migration properly, the governance of the project was insufficiently robust and the firm failed to take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems,†Mark Steward, FCA executive director of enforcement and market oversight said.
Banco Sabadell SA-owned TSB, which has paid £32.7 million in redress to affected customers, qualified for a 30% discount in the overall penalty after agreeing to resolve this matter with the FCA and PRA.
“We’d like to apologise again to TSB customers who were impacted by issues following the technology migration in 2018,†TSB’s Chief Executive Officer Robin Bulloch said in an emailed statement.