TSB boss Paul Pester to step down following IT meltdown

TSB boss Paul Pester is to leave the troubled bank in the wake of its botched IT switch earlier this year and a string of ongoing technology failures (Nick Ansell/PA) Credit: PA Wire/PA Images

TSB boss Paul Pester is to leave the troubled bank in the wake of its botched IT switch earlier this year and a string of ongoing technology failures.

Mr Pester’s departure comes after a seven-year stint at the top, which has been marred by the IT woes that left up to 1.9 million people using TSB’s digital and mobile banking locked out of their bank accounts.

TSB’s non-executive chairman, Richard Meddings, will take on the role of executive chairman with immediate effect to begin the hunt for a new CEO.

TSB customers have been experiencing a number of IT difficulties. Credit: PA

Mr Meddings said: "Although there is more to do to achieve full stability for customers, the bank’s IT systems and services are much improved since the IT migration.

"Paul and the board have therefore agreed that this is the right time to appoint a new chief executive for TSB."

Mr Pester said it had been a "privilege" to lead the bank, but admitted that the past few months have been "challenging for everyone at TSB."

Mr Pester’s departure announcement comes just a day after TSB’s latest IT problems, with many customers left with no access to their accounts.

Hundreds shared their concerns on social media on Monday about issues including "duplicate transactions", while TSB said it was working on a fix.

TSB has been under fire after its recent botched IT switch. Credit: PA

Mr Pester has come under particular fire after the recent bungled IT switch, with MPs on the influential Treasury Select Committee calling for him to be sacked.

The tech troubles were triggered by a migration of customer data from former owner Lloyds’ IT system to a new one managed by TSB’s current owner Sabadell in April.

Mr Meddings said: "Together with the executive committee, we have three immediate priorities: to complete the work of putting things right for customers; to enable the bank to achieve full functionality – including the availability of all product services and launch of a leading business banking offer; and appointing a chief executive for the next chapter of TSB."