IT failure mars return of TSB to high street after 18 years

An IT glitch meant customers were unable to log on to internet banking at both TSB and parent bank Lloyds.

The bank, which will have 
631 branches around the country and 38 in Yorkshire, hailed 
a return to “local banking” and 
an end to excessive banker bonuses. Paul Pester, TSB’s chief executive, said: “TSB bucks the trend in banking. We look forward to bringing local banking back to Yorkshire and serving local communities in the area.

“The TSB movement was originally created over 200 years ago. Its sole purpose then was to serve the local people in the community. This is exactly what we’re doing again today as we bring the new TSB Bank back to Yorkshire, to fuel local economies – and nothing else.”

He said the new business would steer clear of investment banking, derivatives trading and overseas speculation while seeking a “new approach” to paying executives – although he declined to disclose his own salary.

TSB will become Britain’s eighth largest high street bank. Lloyds, rescued by the Government, has revived the name after being forced to ditch 631 branches under European rules on state aid.

A pledge by Lloyds chief executive Antonio Horta-Osorio that there would be a “seamless transition” for customers was undermined on day one of the transfer by the IT glitches. They followed earlier teething troubles over the weekend. The websites were later back up and running.

Sale possible before flotation: Business Tuesday: Page 3.