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

  • PM Network

    Playing with Fire

    By Jones, Tegan With the coastline of an entire continent burning, a scorched-earth urgency had teams across Australia racing to control the damage. Between September 2019 and January 2020, bushfires ravaged…

  • PM Network

    Trees of Life

    By Hendershot, Steve The world needs more trees—and a lot of them—to stem the damage wrought by mass deforestation. Brazil alone is destroying the equivalent of three football pitches per minute in the Amazon rainforest…

  • PM Network

    Rising Risks

    By Nilsson, Ryan For as long as humans have been building cities, they have migrated toward the coasts -- for food, ease of transportation and any number of ecological benefits. Today, it's estimated that more than…

  • PM Network

    From the Rubble

    By Thomas, Jennifer Puerto Rico's infrastructure woes began long ago. But a series of earthquakes this year coupled with hurricanes Irma and Maria in 2017—which racked upUS$139 billion in damage—exacerbated the U.S.…

  • PM Network

    Trading Transformed?

    Blockchain—the technology that made cryptocurrency mainstream—is now entering the U.S. stock market. In November, the U.S. Securities and Exchange Commission approved a pilot project to use…