![]() The TSB system crash was one of the most severe IT failures of recent years, impacting 1.9 million customers, causing untold stress and contributing to an increase in complaints to the Financial Conduct Authority (FCA) in the first half of 2018. TSB have apologised for the service disruption and commissioned the independent review to reassure customers they were committed to learning from their failures. The final switchover to the new system transferred every customer account, but then the problems started.Īlthough the system was tested with over 1,600 employees, testing in a live environment didn't take place until all the data had been migrated.Īs well as this, the report found only 800 system defects were conveyed to the board when over 2,000 had been uncovered.įailings by both TSB and Sabis were highlighted, with the bank criticised for setting unnecessary time constraints on the project and the IT provider criticised for being unprepared to operate the new platform. When TSB separated from Lloyds Banking Group in 2013, they continued to use a legacy IT platform. We need to move technology forward, with customers at the front of our minds.TSB partnered with IT provider Sabis to switch over to a new IT system that was four years in the planning, with the migration taking place in April 2018. Moving forward, finance can no longer rely on these antiquated structures. For many out there that could even end in no food on the table.Īlthough TSB is now working round the clock to resolve the issue, the fact is that the issue was created by the existence of centralised systems so old and complex that nobody really understands how they work. A lack of access to online banking can mean a complete hold on a week’s trade. What many may not think of, is the individual effect an online banking crisis may have to small private business owners. No one loses service, and businesses relying on the platform, as so many did with TSB, won’t lose income, profit or customers. A large trading server goes offline, but there are still copies of the ledger throughout the platform, supported by its users. This prevents fraud and ensures that your money goes where it should, but a massive benefit is that there is no centralised system to “crash”. With Distributed Ledger Technology, although all private, sensitive information is wholly owned and private to the individual customer, transactions are tracked on a global network. Now let’s talk about DLTs (Distributed Ledger Technology) or blockchains as deployed by hiveonline, and how they can ensure something like this is easy to avoid. The fallout is going to send internal development back months, or possibly even longer, making it ever harder long term for the bank to bounce back a similar crisis six years ago at RBS/NatWest set back strategic development more than six months. TSB boss Paul Pester has told the BBC the bank is “on our knees” –. Where those legacy systems are not fully understood or supported, disaster can strike.Īlthough from an outside perspective, the largest damages are seven plus days of customer disruption, internally the scale of damage this has caused is much higher. Even, as in this case, when new systems have been developed, migrating data from old to new is expensive and complex. Following the sale of Lloyd’s to Sabadell, the new bank spent a whopping £450 million on upgrading their systems to accommodate TSB’s customers, but the migration to the new systems relied on the data coming from these complicated legacy systems.Īll banking systems and technologies as we currently know them have an expiration date if they don’t develop and grow alongside changing markets and their client base, a crisis is inevitable. Following TSB’s separation from Lloyds, there was little to no advancement of their centralised systems, instead they remained as they always have been – antiquated and complex. ![]() ![]() ![]() ![]() As the collapse of the TSB online services approaches the 8th day with no soon end in sight, we draw our attention to exactly how something of this scale could have come about. ![]()
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