TSB brings in IBM in attempt to resolve IT crisis

Failed system upgrade which resulted in customers being able to access one another's accounts now being investigated by IBM

TSB has engaged IBM in an attempt to resolve its recent IT crisis, which resulted from a failed system upgrade at the weekend.

The bank made the announcement during its first-quarter results call, in which it also revealed a dip in pre-tax profits.

It said that IBM had been brought it to attempt to resolve ongoing performance issues with its new servers.

MPs recently demanded answers from the bank, following widespread reports of disarray in its consumer accounts, with some customers wrongly credited with tens of thousands of pounds, and others unable to access their funds at all.

TSB has said that it would waive overdraft and interest charges for April for its retail and small business customers, in addition to guranteeing that its customers will be compensated for any financial loss as a result of the problems.

It published an update from its CEO Paul Pester over its Twitter feed, apologising to customers for the issues.

Later, it claimed that its digital services were back up and running.

TSB customers were warned that the server switch would be happening at the weekend, the result of a move away from legacy technology implemented by the bank's former owner Lloyds.

However, some reports have suggested that consultants warned in 2015 that the project was underfunded and at risk of failure.

IBM has taken heavy criticism recently for its handling of a $2.3 billion outsourcing deal from construction firm AECOM, with a number of insiders complaining of broken workflows, poor morale and lengthy delays.

TSB will hope that IBM fare better with their systems.