Pressure has been mounting on the bank chief following a number of critical IT failures, which left customers unable to access their accounts. In April, customers were locked out of their online banking services with dozens reporting they had access to other people’s accounts. The meltdown occurred during a migration of IT services.
The bank is still struggling to restore its IT systems and on Monday it apologised to customers who faced further disruption to online and mobile banking services.
TSB chairman, Richard Meddings, will assume the role of executive chairman until a new chief executive is appointed. In a statement, 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.”
He added: “Paul and the Board have therefore agreed that this is the right time to appoint a new CEO for TSB.”
Pester joined Lloyds Banking Group in 2010 and was appointed to spearhead the launch of TSB during its separation from Lloyds the following year.
Launched in 2013, TSB was acquired by Spanish banking giant, Sabadell, in 2015. The migration of customer records from the Lloyds Banking Group platform to the Sabadell Proteo platform started on the 20th April but was fraught with difficulties.
Hundreds of customers took to social media to voice their concerns during the IT meltdown and, in the weeks following, Pester was pressured to resign amid claims that he misled MPs.
Pester denied misleading MPs, however, a report published by IBM appeared to contradict statements he gave to a parliamentary committee investigating the crisis.
The Financial Conduct Authority (FCA) launched a formal investigation in June, with the organisation’s chief executive Andrew Bailey making the probe public “given the level of public interest.”
In July, TSB said the IT meltdown had cost £176.4 millon and pushed it to a half-year loss.