TSB has apologised for IT failings, which has locked 1.9 million customers out of their banking accounts. After being acquired by the Spanish bank Sabadell from Lloyds Banking in 2015, TSB continued to rent a banking platform from its former owners while it developed its own “state-of-the-art” platform (Proteo4UK), saving £200 million a year in rent.
Over the past few days the migration to that platform has presented many problems for the company including the locking out of just under two million customers from their banking infrastructure, leaving customers enraged and a very public humiliation for TSB.
The need to move the banking platform is not purely based on saving the large rent cost. However, TSB needs the Proteo4UK platform to launch their own customer-facing systems, which they are currently unable to do. It was expected that the migration would interrupt services for over a weekend only; the reality has been that disrupted services are over a week old, and, at time of writing, are still ongoing.
TSB is migrating their banking platforms and the new platform is designed for a digitally transformed world. Gone are the ties to the plethora of UK based legacy mainframe systems and their interdependencies and this fact is possibly one of the main difficulties the migration has faced. The new core banking system has already successfully developed Android and iOS mobile apps for the banking platform and the system is. CIO Carlos Abarca describes this as customer-centric, which means that it is now a single repository for customer data, rather than linking the disparate pools of data that were previously structured under the Lloyds system.
Unfortunately, the problems have not just been the loss of customer service. Additionally, customers have had access to other customer data and account balances wrongly credited and debited by thousands of pounds. The breaches have been reported to the ICO who are now making enquiries into this fiasco. The problems for TSB illustrated the fact that data breaches are not exclusively the domain of hackers, although the confusion over the migration may well provide opportunities for criminal actors to claim some advantages.
Testing system integrity and data migration can be made easier with tools such as Disaster Recovery and Cloud hosting where the transfer can be modelled within a test cloud to examine data dependencies and interoperability.
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