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TSB's board of directors lacked common sense before the collapse of IT, the report says



TSB branchImage copyright
Reuters

The TSB board was accused of lacking “common sense” in preparing for IT crashes, due to which up to 1.9 million customers did not have access to online banking after the system crashed in April 2018.

An independent incident report prepared by the law firm Slaughter and May blamed both TSB and IT provider Sabis.

Clients were transferred to the new system, but the report says that it was not properly tested before being put into operation.

It was found that the tests were carried out only offline, and not in a living system.

He said that TSB acknowledged that the tests were carried out in both systems, and that they may have been able to identify problems that affected customers before they occurred.

“We came to the conclusion that the new platform was not ready to support the full TSB client base, and Sabis was not ready to operate the new platform,” the message said.

“Although the TSB Board asked a number of pertinent questions … there were certain additional common-sense problems that the TSB Board did not pose to the head.

“Among them was why it was reasonable to expect TSB to be“ ready for migration ”only four months later than originally planned when certain workflows were seven months behind schedule.”

The report also said that at the time of the launch of the system there were more than 2000 defects related to testing, but only 800 were reported to the board.

TSB is part of the Spanish banking group Sabadell, and its own IT provider, Sabis, has created the system.

TSB Executive Chairman Richard Meddings said: “The Slaughter and May report contains a number of findings on planning and migration preparations that they thought could have been done differently.

“In the light of the problems that clients are facing, TSB has made important changes to allow the bank to reorganize – including into the management and management structures, as well as to decide on direct control over IT operations.

“It is important to note that TSB has long paid compensation to every eligible customer affected by the violation.”

Image copyright
PA Media

Image caption

Paul Pester left the bank in September 2018

Former TSB CEO Paul Pester, who quit his job a few months after the incident, said: “If these findings are correct, Sabis rolls the die, performing tests in only one of the two new TSB data centers, and this decision was hidden from me. and the rest of the TSB board.

“The report explains that it made it impossible for the TSB board to anticipate the serious problems faced by many customers who cannot access their accounts.

“Obviously, if we knew about Sabis’s labels in the testing program, we with TSB and the board would never have switched to a new system at that time.”

The slaughter and the May report were commissioned by TSB. Another joint report by two regulators, the Financial Conduct Authority and the Bank of England Prudential Regulation Directorate, will be published later. These regulators have the right to fine and reprimand businesses and individuals.


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