Last April, high-street bank TSB suffered an IT disaster. Now, nine months later, they are still having to handle customer complaints.
How did the outage happen?
The IT outage happened when the bank attempted to move its data to an entirely new computer system. This attempt backfired which left the bank’s users without access to their banking services for a couple of weeks.
What were the consequences?
Costs for the outage recently hit £330.2m, with part of that being covered by computer provider Sabis (£153m). The bank had to pay customer compensation and fraud of roughly £174m, as well as having to pay for help, advice and the money to tackle lost income from waived fees and charges.
TSB said the damage was big, losing them roughly 80,000 customers when they switched to other providers. Some customers were left without service for weeks and, although the bank managed to resolve 90 per cent of customer complaints, 23,000 are still in need of being handled.
The majority of TSB’s staff (execs excluded) were rewarded financially for all extra work that they had to put in to rectify their mistakes, but execs were not rewarded bonuses for last year.
Richard Meddings, TSB executive chairman, added: “Last year was TSB’s most challenging year. But we enter 2019 with renewed ambition to remerge as the leading challenger bank in the UK – firmly on the side of the customer.”
Another major consequence of last year’s TSB disaster was that the company’s CEO, Paul Pester, quit his job at the company.
What can we do to avoid IT outages?
Our experts have a wide range of solutions that can help keep your IT systems running, as well as provide you with effective methods to back up your data. Contact the SCS Technology team on 01522 883636 and we’ll be happy to advise you.