Warning signs for the TSB this crisis, it was clear a year ago – the insider

Banking software in heart trouble, the Central Bank this week was doomed to failure from the start, an insider with extensive knowledge of systems said.

Customers blocked their Bank accounts, mortgage accounts disappearing, small businesses reporting that they could not pay their staff and reports of a debit card refuses to work, the computer crisis, the Bank was one of the worst in recent times. The Bank, its Director, Paul pester, admitted on Thursday, was “on his knees” and it threatens the bill of compensation likely to run to tens of millions of pounds.

TSB customers vent anger as the crisis continues

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Just before the Bank’s services crumpled, software engineers and BANCO Sabadell, TSB’s Spanish owner, praising your efforts with champagne and claiming a job well done. The comments posted under the photo reads: “great team!” and “Champions!” However, signs that a disaster of this magnitude may occur there a year before.

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When TSB split from lloyds banking group (lbg), step, forced the EU as a condition of providing financial assistance to the taxpayer in 2008, a clone of a computer system, the original group was created and delivered securities for 100 million pounds a year.

The banking system was “to fix many of the old systems for TSB, BOS, Halifax, Cheltenham and Gloucester and others,” which went from the “nightmare” integration SERIALCHIKOV with lloyds as a result of banking crisis, in the words of one insider, who had extensive access to and deep knowledge of lbg and TSB internal systems over a long period.

“The idea was to create a mirror copy of the spreading of the local group of the combined systems and use this to serve much less TSB Bank. It seemed ill-suited for small banks to inherit all the problems of a bloated mess to service much smaller clients,” the insider said.

Under this arrangement, lbg was holding all the cards. She oversaw the system and offered it as a costly services for the CBA, when he was separated from lloyds in September 2013.

When Sabadell United Bank bought for £1.7 billion in March 2015, put into effect a plan which succeeds in the past on a few other smaller banks it acquired: merger of Bank’s information systems with its own Proteo banking software and, thus, save millions.

Sabadell was warned in 2015 that his ambitious plan was high risk and that it may cost much more than £450 million from Lloyds contributes to the effort.

“It’s not too generous in the budget that the scale of migration,” John Harvey, Director of the international consulting company Protiviti, reported “financial times” in July 2015. But the Proteo system was developed in 2000 specifically to carry out a merger such as BSE in the Spanish group, and Sabadell moved.




The software engineers will toast the transfer of customer records held on systems at lloyds banking group on the platform of Sabadell. Photo: LinkedIn

By the summer of 2016, work on the development of the new system was supposed to be December 2017 was set as a hard and fast delivery time.

“The time period for the development of new systems and the transfer of the Central Bank, he was only 18 months,” the insider said. “I thought it was funny. TSB people said that Sabadell had done this many times in Spain. But the tiny Spanish local banks are not spreading lbg for legacy systems”.

To make matters worse, the team Sabadell have complete control and therefore a full understanding of the system they tried data migration and support systems for lloyds banking group was a supplier.

“It’s turned what was a super-heavy systems [in] the ambush in what he does,” the insider said.

By March 2017, a nightmare for customers that were about to unfold a year later was inevitable. “It was unbelievable to even prototype or proof-of-concept, but it needs to be fully tested and working since may to integration work has begun,” the insider continued. “Senior staff were furious about the condition. Not even logging in was problematic.”

By autumn, he was not yet ready. Central Bank announced a delay, blaming the probability of an interest rate hike in the UK – which did not materialize and the risk that the Bank may keep not to offer the mortgage quotes on the key weekend.

Sabadell pushed the transition in April to try to obtain a working system. It was expensive, because the fees the Bank had to pay in the local group to continue to use the old system was still working: stick put the bill at £70 million.

April 23, Sabadell announced that Proteo4UK – name version of the Central Bank system of the Spanish Bank was full, and that customers 5.4 m was “successfully” migrated to the new system.

Josep Oliu, Chairman of Sabadell, said: “with this migration, Sabadell proved its technological capacity for management, not only in the national migration, but also on an international scale”.

The team behind the development celebrated. On his page in LinkedIn removed, those involved in the migration described themselves as “Champions” and “great team” and were photographed raising glasses of champagne to cheer “transmission TSB done and dusted”.

However, snapped a few hours after power on, system crumpled and up to 1.9 m TSB customers who use online and mobile banking were blocked. “I could put money on the implementation of the disaster he was, with proof of big code changes to the hoof over the weekend and this week,” said an insider.

Twitter lit up as customers, frustrated by the inability to access their accounts or get through to Call centers, the Bank began to vent their anger.

Customers receive the texts say that their card was used abroad, they had discovered thousands of pounds in their accounts they had or that the mortgage accounts disappear, increase or change currency. One account holder stunned showed its TSB banking app record direct debit paid to Sky Digital 81 years. Some saw account details of other people and tourists complained that they were left unable to pay restaurant and hotel bills.

TSB, to the indignation of the customers, first insisted that the problems were only intermittent. At 3.40 am on Wednesday 25 April to pester tweeted that the system “works”, only to be forced to apologize the next day and admit that it was actually only running at 50% capacity. On Thursday, he admitted that the Bank was on his knees, said that he had personally taken control of my attempts to fix the problem from their Spanish masters, and hired a team of IBM to do the job. Sabadell said it will probably be next week before normal service is back.

The financial Ombudsman and regulated by the financial conduct authority have launched investigations. The Bank was forced to cancel all the overdraft fees, the APR will raise the interest rate it pays on its classic current account in an attempt to stop frustrated customers take their business elsewhere.

The number of complaints is slowing, but they haven’t stopped. On Friday, one customer told the Guardian that some of their personal data that have already switched to the new system was five years ago. A Twitter user reported that he contacted the Bank about a text message is received, account closed more than five years ago .

Software stick was boasted about in September as a 2500 person-years, with more than 1000 participants , was a disaster of customer service, which will cost the Bank millions and tarnish its reputation over the years.

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