Project Management Institute

Transaction Declined

Costs are Adding Up for TSB Bank

Costs are adding up for TSB Bank. In April, the U.K.-based company launched an error-riddled banking platform that affected about 1.9 million customers. TSB mobile and online users got access to other people's accounts, were charged for purchases they never made and experienced widespread difficulty accessing money. By June, some customers were still frequently locked out of their accounts.

TSB's desire for new customer-facing IT infrastructure stemmed from a split with Lloyds Bank in 2015. Despite TSB being owned by Sabadell after the move, Lloyds Bank continued to operate TSB's IT infrastructure. Last year, TSB began rolling out a project to transfer its 1.3 billion records into the new banking platform, promising customers a state-of-the-art platform.

But the IT project faced challenges from the start. Switching from legacy systems to new platforms is notoriously difficult for banks. TSB's project was also running behind schedule, according to a source in Wired. The end product apparently lacked systematic testing before it went live, according to Shujun Li, a professor of cybersecurity at the University of Kent's School of Computing. “The conversion of the systems—the data and the interface accessing the data, which links up to the banking system—clearly has not been well-tested before it went online,” Mr. Li told Wired. “For me, it's clearly a case of management, rather than purely a technical problem.”


TSB has since brought in IBM to help remedy the problem. No solution remained in sight as of June, with costs of the failed migration hitting £70 million, according to The Times.

This material has been reproduced with the permission of the copyright owner. Unauthorized reproduction of this material is strictly prohibited. For permission to reproduce this material, please contact PMI.



Related Content

  • Project Management Journal

    Team Collective Intelligence in Dynamically Complex Projects member content locked

    By Hansen, Morten Juel | Vaagen, Hajnalka | van Oorschot, Kim In concurrent engineering projects driven by short delivery times, team performance rests on the team’s capability to quickly and effectively handle different, emergent issues. We conducted an…

  • PM Network

    High-Wire Act

    By Parsi, Novid Seven years ago, government leaders in Alberta, Canada vowed to take a major step toward addressing the energy needs of the growing province. The resulting transmission line, the longest of its kind…

  • PMI White Papers

    The Impact of the COVID-19 Crisis on Project Business

    By Project Management Institute | Project Business Foundation This is a report on the results of a survey jointly conducted by PMI and the Project Business Foundation. The intention was to replace observations and opinions with reliable data. The mission was…

  • PM Network

    Árboles de la vida

    By Hendershot, Steve El mundo necesita más árboles, muchos más árboles, para mitigar el daño causado por la deforestación masiva. Brasil está destruyendo el equivalente a tres canchas de fútbol por minuto en la selva…

  • PM Network

    Riesgos elevados

    By Nilsson, Ryan Desde que los humanos han construido ciudades, han migrado hacia las costas en busca de alimento, facilidad de transporte y un sinnúmero de beneficios ecológicos.