TSB’s prolonged IT crisis cost it 16,600 customers
TSB lost more than 16,600 customers to rivals between April and June, after an IT fiasco prevented up to 1.9m people from accessing their bank accounts.
The crisis led to TSB announcing a pre-tax loss of £107.4m during its half-year results in July, down from £108.3m profit in the same period last year.
Read more: Investigation report into TSB IT meltdown to be fast-tracked
The IT meltdown occurred after a botched migration of 5.2m customer records from former owner Lloyds Banking Group to a new system belonging to its current owner Sabadell.
Customers have continued to face sporadic IT issues.
Chief executive Paul Pester resigned in September after months of criticism, with the Treasury select committee saying back in June that the board should give “serious consideration as to whether his position was sustainable”.
The latest figures, provided by payments company BACS, show the number of customers using the government's Current Account Switching Service.
A TSB spokesperson said: “The number of people who use the Current Account Switching Service is only part of the total picture. During the three months in question we actually saw more than 20,000 customers either open a new bank account at one of our branches or switch their account to us using the CASS system.”
A separate poll by Money Saving Expert in August found that TSB had plummeted from fourth to 11th place in a banking customer service poll following the online disaster.
Read more: TSB plunges to bottom of banking customer service poll following IT crisis
The figures showed more positive results for Nationwide, which gained 34,577 customers over the period.
Fintech banks Monzo and Starling, who have only recently started being recorded by BACS, attracted 2,702 and 1,737 customers respectively over the three months.
Both Monzo and Starling have lured customers away from the major brands with simple mobile apps and competitive foreign exchange rates.