Former TSB tech chief hit with fine after botched IT upgrade

A former TSB executive has been fined after a botched IT upgrade.

The lender was branded the ‘Totally Shambolic Bank’ in 2018 after the tech meltdown left many of its 5.2m customers unable to access their cash and other services.

TSB was last year fined more than £48m by regulators at the Prudential Regulation Authority (PRA) and Financial Conduct Authority over the debacle. 

It also paid £32.7million to retail and corporate customers who were affected.

The PRA, part of the Bank of England, has followed this up with an £81,620 fine for Carlos Abarca, TSB’s former chief information officer, under senior manager conduct rules introduced after the 2008 financial crisis.

A TSB upgrade disrupted its branch network, and internet, mobile and telephone banking.

Sam Woods, chief executive of the PRA, said: ‘Senior managers have an essential role to play in ensuring firms manage and supervise outsourcing effectively. 

The PRA has fined Mr Abarca because his management of a key outsourcing relationship fell below the standard we expect.’