British lender TSB has been penalised 48.65 million pounds ($59.1 million) for a failed IT platform upgrade in 2018 that prevented millions of its clients from accessing their accounts according to UK regulators.
The owner of TSB Sabadell, a Spanish company, stated in a statement that TSB will account for the settlement in the fourth quarter. According to the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA), the IT upgrade “immediately experienced technical difficulties.” As a result, TSB’s telephone, online, and in-person banking services experienced “severe disruption.” The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) fined TSB 29.75 million pounds for switching to a new banking platform before it had been thoroughly tested.
According to a 2019 investigative report, an IT failure at TSB bank resulted in the disruption of services for up to 2 million customers. Due to issues with switching to the new platform, parent company Sabadell’s profits from the previous year were also cut in half.
The penalty ends the ambiguity that previously surrounded TSB and compelled Sabadell to postpone selling its British subsidiary until it completely turned around the company. For the seventh consecutive quarter, TSB contributed positively to the parent group’s profits in the third quarter by adding 39 million euros ($41.4 million).
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