The Financial Conduct Authority and the Bank of England announced on Tuesday that British lender TSB had been fined £48.65 million ($59.07 million) for a botched IT platform migration in 2018.
The Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) reported that the IT upgrade “immediately experienced technical failures,” causing “significant disruption” to TSB’s in-person, online, and phone banking services.
The regulators concluded that TSB did not adequately plan and manage the migration as well as manage operational risks associated with its IT outsourcing arrangement.
TSB received a 30% discount by agreeing to settle the matter and was still fined £29.75 million by the FCA and £18.9 million by the PRA.
TSB CEO Robin Bulloch issued an apology to customers who experienced issues with the upgrade.
“We worked hard to put things right for customers then and have since transformed our business,” he said. “Over the past four years, we have harnessed our technology to deliver new products and better services for TSB customers.”
In a statement, Sabadell, the Spanish lender that owns TSB, stated that the settlement would be recorded by TSB in the fourth quarter.
(Adapted from ChannelNewsAsia.com)