TSB board lacked common sense in lead-up to IT meltdown, report finds

&Tab;&Tab;<div class&equals;"wpcnt">&NewLine;&Tab;&Tab;&Tab;<div class&equals;"wpa">&NewLine;&Tab;&Tab;&Tab;&Tab;<span class&equals;"wpa-about">Advertisements<&sol;span>&NewLine;&Tab;&Tab;&Tab;&Tab;<div class&equals;"u top&lowbar;amp">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;<amp-ad width&equals;"300" height&equals;"265"&NewLine;&Tab;&Tab; type&equals;"pubmine"&NewLine;&Tab;&Tab; data-siteid&equals;"111265417"&NewLine;&Tab;&Tab; data-section&equals;"2">&NewLine;&Tab;&Tab;<&sol;amp-ad>&NewLine;&Tab;&Tab;&Tab;&Tab;<&sol;div>&NewLine;&Tab;&Tab;&Tab;<&sol;div>&NewLine;&Tab;&Tab;<&sol;div><p>The board of TSB Bank lacked &OpenCurlyDoubleQuote;common sense” in the lead-up to a major IT meltdown that locked two million people out of their accounts&comma; a damning report has found&period;<&sol;p>&NewLine;<p><&excl;--Ads1--><&sol;p>&NewLine;<p>An independent investigation by law firm Slaughter and May has concluded the lender’s board should have done more to challenge bosses in charge of the systems upgrade last April&period;<&sol;p>&NewLine;<p>But it also found the IT boss at TSB failed to alert management at the bank to problems with the system&comma; having made an &OpenCurlyDoubleQuote;ill-judged” assessment that the lender was ready to go live with a new platform for its five million customers&period;<&sol;p>&NewLine;<p>The debacle in April 2018 sparked one of the UK’s biggest ever banking systems crises and led to former TSB boss Paul Pester stepping down&period;<&sol;p>&NewLine;<blockquote><p>While the TSB board asked a number of pertinent questions&&num;8230&semi; there were certain additional common sense challenges that the TSB board did not put to the executive<&sol;p><&sol;blockquote>&NewLine;<p>It also saw TSB foot a £370 million bill for customer compensation and expenses for the inquiry over the past 18 months&period;<&sol;p>&NewLine;<p>Slaughter and May’s report concluded that the new IT system was &OpenCurlyDoubleQuote;neither stable nor complete” when the board approved the migration of customer data from former owner Lloyds Banking Group’s IT system to a new one managed by TSB’s new parent Sabadell&period;<&sol;p>&NewLine;<p>The report said&colon; &OpenCurlyDoubleQuote;While the TSB board asked a number of pertinent questions… there were certain additional common sense challenges that the TSB board did not put to the executive&period;”<&sol;p>&NewLine;<p>It added&colon; &OpenCurlyDoubleQuote;In the lead up to the &OpenCurlyQuote;go live’&comma; the TSB board should have done more to assess&comma; and should have provided a stronger challenge to the executive’s explanation of the adequacy of testing&period;”<&sol;p>&NewLine;<p>The probe also said the timetable was rushed in the final stages and laid the blame not just on the board&comma; but also said chief IT officer Carlos Abarca failed to raise major &OpenCurlyDoubleQuote;shortcomings” of the new system to the board&period;<&sol;p>&NewLine;<p>It said his statements to the board that the system was ready and would work as expected were &OpenCurlyDoubleQuote;ill-judged”&period;<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;While the TSB chief executive may not have been aware of these shortcomings&comma; the TSB CIO was aware of them and he should have escalated them to the TSB CEO and to the TSB board&comma;” the report found&period;<&sol;p>&NewLine;<blockquote><p>Their conclusions do not paint the full picture or arrive at the same conclusions as the other reports<&sol;p><&sol;blockquote>&NewLine;<p><&excl;--Ads2--><&sol;p>&NewLine;<p>TSB chairman Richard Meddings said the board disagreed with some of the report’s findings&comma; in particular that it missed opportunities to spot shortcomings in the run-up to the meltdown&period;<&sol;p>&NewLine;<p>He instead insisted the blame should be pointed at the fact the bank’s two data centres were configured differently&comma; though he admitted problems with oversight of key suppliers&period;<&sol;p>&NewLine;<p>Mr Meddings said&colon; &OpenCurlyDoubleQuote;Their conclusions do not paint the full picture or arrive at the same conclusions as the other reports&period;”<&sol;p>&NewLine;<p>He admitted the saga was one of the most difficult in the bank’s history and that the report &OpenCurlyDoubleQuote;reminds us of that painful chapter”&period;<&sol;p>&NewLine;<p>Mr Meddings added&colon; &OpenCurlyDoubleQuote;We have already made major changes as a result of what we have learned&comma; including moving to take direct control of our IT operations&period;”<&sol;p>&NewLine;<p><&excl;--Ads3--><&sol;p>&NewLine;<p>TSB appointed former CYBG chief operating officer Debbie Crosbie as its new chief executive earlier this year&period;<&sol;p>&NewLine;<p>But the group has also suffered enduring IT issues since last year’s crisis&comma; and was forced to apologise again in September 2018 after many customers were once more left unable to access their accounts&period;<&sol;p>&NewLine;&Tab;&Tab;&Tab;<div style&equals;"padding-bottom&colon;15px&semi;" class&equals;"wordads-tag" data-slot-type&equals;"belowpost">&NewLine;&Tab;&Tab;&Tab;&Tab;<div id&equals;"atatags-dynamic-belowpost-68e28a1e35a67">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;<script type&equals;"text&sol;javascript">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;window&period;getAdSnippetCallback &equals; function &lpar;&rpar; &lbrace;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;if &lpar; 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