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The Guardian - UK
The Guardian - UK
Business
Graeme Wearden

TSB hit by online banking chaos after IT migration - as it happened

A branch of TSB bank in London.
A branch of TSB bank in London. Photograph: Yui Mok/PA

TSB customers must wait until Tuesday morning to find out if they can get into their online bank accounts.

The bank itself seems to have gone quiet (customer service shut down at 11pm and reopens at 7am).

So we’re going to wrap up for the day too. Goodnight, and good luck to everyone affected by these problems. GW

Updated

Photographer, and Green Party candidate, Nicola Albon confirms that the problems still aren’t resolved....

TSB customer Nick Mays says he’s finally got online.....but is still planning take his business elsewhere.

Other customers are worried that the problems won’t be fixed by Tuesday morning....

One TSB mortgage-holder got a rather nasty shock when she managed to log into her account:

Becky Dracup of Liverpool is another less-than-satisfied customer tonight, after struggling to speak to anyone at TSB:

TSB’s IT woes make the front page of the Financial Times tomorrow.

The FT focuses on the prospect that City and data watchdogs will savage the bank, saying:

Regulators are probing computer problems at TSB that left many customers of the UK bank unable to check their accounts and gave some access to other people’s money after it switched to new systems over the weekend.

The problems, which provoked a flurry of complaints on social media, followed a scheduled shutdown of TSB’s online and mobile banking applications over the weekend while it transferred 1.3bn customer records from its former parent Lloyds Banking Group.

The Information Commissioner’s Office — the UK privacy watchdog — said: “We are aware of a potential data breach in relation to the TSB and are making enquiries.”

The Financial Conduct Authority said it was “aware of the issue” and was “liaising with the firm”....

More here.

As we head into the night, TSB are still telling customers that they don’t know when the IT outage will be fixed.

Lib Dem peer blasts TSB CEO

TSB’s chief executive Paul Pester has kept a low profile today - he’s not tweeted about the IT problems at all.

Liberal Democrat peer Paul Scriven has laid into Pester on Twitter this evening, calling for answers about what’s gone wrong:

Bookseller Isabel MacNeill would also like to hear from Pester:

Updated

It’s now 27 hours since TSB’s migration to a new IT platform was meant to conclude - and some users, such as GMB official Rachelle Wilkins, are still in the dark:

Data visualisation firm Bright Analytics is worried that it won’t be able to pay its employees, or settle other bills, until TSB fixes its problems:

Many users are still reporting that TSB is refusing to accept their login details, including PR and social media executive Cara Elizabeth:

The state of play at TSB tonight

Time for a quick recap, for anyone tuning in or seeking the latest information.

Updated

This is important.

Any TSB customers who discover an unexpected windfall in their accounts this week should not rush out and spend it. If you do, you could be forced to pay it back... or worse.

Lee Boyce of This Is Money explains:

Legally, if a sum of cash is accidentally paid into your account and you know it isn’t yours, you are liable to pay it back.

Keeping and spending money wrongly placed into your account could lead to you being charged with retaining wrongful credit under the Theft Act 1968.

Two sisters were sent to prison in 2008 after going on a spending spree with cash that wasn’t theirs. The then Abbey Bank had wrongly credited £135,000 into one of their accounts.

It took the bank two weeks to spot the mistake.

The official advice is to contact your bank and alert it to the mistake - but many TSB customers say that call waiting times are currently extremely long as it battles the meltdown.

Criminal paralegal James Ashton has found himself caught up in TSB’s problems:

TSB’s hard-pressed social media team are repeating the same generic statement to scores of customers, along the lines of:

We’re really sorry to hear that you’re experiencing problems accessing Online Banking. Unfortunately, there are some intermittent problems affecting this service so please bear with us.

We’re working as hard as we can to resolve this. In the meantime, please try again later and sorry once more for the inconvenience.

That really isn’t enough to address the concerns of customers who can’t make payments, or even check how much money is in their account.

For example:

Updated

One of the most alarming elements of this mess is that some TSB customers say they saw the account details of other customers - a potentially serious breach.

One account holder, called Matthew Neal, says he logged last night and found himself looking at someone else’s £35,000 savings account,plus an £11,000 Isa, and a business account!

TSB claims to have such issues, but other customers have reported similar problems today:

Britain’s financial ombudsman, which mediates on complaints between customers and financial firms, is also taking an interest:

TSB’s systems were meant to be up and running after its IT migration 24 hours ago.

But instead, its social media account is being hammered by increasingly angry customers, who STILL can’t get into their accounts.

The list now includes a contestant from this year’s series of MasterChef, furniture designer Fiona Harris:

Could TSB be fined over IT blunders?

TSB risks being hit with a hefty fine for the problems suffered by its customers, says Iain Withers of the Telegraph.

He writes:

Both the Financial Conduct Authority (FCA) and the Information Commissioner’s Office (ICO) said they were monitoring the situation. The watchdogs have the power to investigate and potentially fine TSB for a system failure or data breach respectively.

Research technician Cameron Hill has found a way back into his TSB account......

I’m afraid I can’t test it myself, but it might be worth attempting.....

TSB’s parent company, Banca Sabadell, thinks the IT migration is a success!

It has released a press release trumpeting the move, even though TSB has admitted there have been problems.

Apparently the new IT platform is a “milestone” for the bank (although it may feel more like a millstone for some customers right now).

It says:

Banco Sabadell has successfully completed the TSB technology migration. The implementation of the new Proteo4UK platform represents a new milestone in the history of Banco Sabadell Group, and particularly in its progress in terms of the bank’s internationalisation. It is also the first ever project outside of Spain in which the bank has created a new banking platform from scratch and completed a large scale migration of the platform.

The Chairman, Josep Oliu, has emphasised that “with this migration, Sabadell has proven its technological management capacity, not only in national migrations, but also on an international scale. The new Proteo4UK platform is an excellent starting point for the organic growth of the business and the improvement of TSB’s efficiency”.

Oliu also stated that “more than 5.4 million customers are now integrated into the new platform, which allows us to grow in a market as mature and highly competitive as the UK market.” Equally, the Chairman has also stated that the migration will provide a “greater competitive capacity and increased value creation for our franchise”.

City AM’s Emma Haslett points out that TSB hopes to slash its costs through this IT move.

Perhaps some of those saving could be put towards a compensation pot for those who suffer losses through today’s problems.

It’s now more than 21 hours since TSB’s online banking systems were due to be working again... but some customers are still experiencing problems.

Jewellery maker Barbara Adamiec reports that it’s damaging her business today:

Despite the IT disruption, TSB’s online complaint form is still up and running. I’m sure they’d like to hear from anyone affected by today’s problems....

The frustration of being locked out of one’s own bank account is evident among TSB’s customer base:

Here’s my colleague Patrick Collingson on the TSB problems:

The internet and mobile banking services of TSB, which has five million customers, intermittently failed on Monday morning after a system upgrade went wrong, prompting widespread concern among users.

The bank, carved out of Lloyds but now part of the Spanish Sabadell group, said it was working urgently to repair what it described as “intermittent” failures in its services.

The crash came hours after the bank warned account holders that some services, including online banking, making payments or transferring money, would not be possible from 4pm on Friday to 6pm on Sunday because of a system upgrade.

Some customers alleged over Twitter that transactions they have not made are being logged to their accounts, with some being credited sums of money, which are later deleted.

More here:

TSB: We're working as fast as we can

TSB has just issued a statement - blaming the ‘large volumes’ of customers trying to access its services for today’s disruption.

A spokesperson says:

“We are currently experiencing large volumes of customers accessing our mobile app and internet banking which is leading to some intermittent issues with people accessing our services.

We are really sorry for the inconvenience this is causing our customers and want them to know we are working as hard and as fast as we can to resolve this problem.”

TSB has around five million UK customers. And surely it expected a surge of activity this morning, after restricting services over the weekend?!

Why TSB was changing its IT systems

Last weekend’s (botched) IT work should have been a symbolic moment for TSB -- as it finally moved the bank away from its former owner, Lloyds Banking Group.

TSB was spun out of Lloyds in 2013, but it has been using its former parent’s backend technology systems ever since - even after being taken over by Spain’s Sabadell in 2015.

TSB had hoped to move onto a new IT system last November, but was forced to delay it. That proved costly, as it pays Lloyds a fee for using its systems - in February, TSB warned that profits would be hit by the delay.

Under these circumstances, TSB will have been keen to take the plunge and move to its new IT systems. But were they completely ready? Today’s problems suggest perhaps not....

Christopher Pavett, pastor of Calvary Church in Clydach, Wales, spoke for many customers caught up in the disruption last night:

Updated

The Sun is also reporting that TSB customers have been left in limbo by its technology problems:

Mark Ezeabasili, 24 a student from London studying sport science at Bedfordshire University told The Sun he hasn’t had access to his account since 6pm yesterday.

He said: “I am a student and I tried to move some money from my TSB ISA to my current account so I would have money for the week.”

“I don’t what I am going to do for money for the week now.”

“I now have to all the way to town to get my money which really disrupts my life as I have exams and assignments and I don’t really have time to go all the way to the bank.”

Some TSB customers report that today’s IT problems are causing serious inconvenience, and even costing them money:

Small businesses who use TSB’s banking service are also worried....

I suspect TSB will be facing some claims for compensation, once this mess is sorted out....

TSB had warned customers that there might be disruption over the weekend, as it carried out its IT upgrade.

However, that work was meant to be finished last night - before many customers headed back to work today.

But as Sky News points out, something has clearly gone wrong:

One customer said he could see other people’s accounts totalling more than £20,000, while another reportedly discovered he had been wrongly credited with £13,000 after logging back in.

It came several hours after the bank had warned its account holders that some of its services, including online banking, making payments or transferring money, would not be possible over the weekend because of a system upgrade.

The upgrade window was scheduled between Friday at 4pm and Sunday at 6pm.

However, a message on the TSB website on Monday morning said there were still “intermittent issues” with its services, while a number of customers reported they were still unable to access their money.

TSB customers hit by online banking problems

TSB logo

UK ‘challenger bank’ TSB is suffering some challenging - and alarming - technical problems this morning, following IT changes over the weekend.

Customers are taking to social media to complain that they can’t access their accounts, or even see how much money is available to them.

The problems have arisen following weekend IT work. There are even reports that some customers are seeing other customers’ balances when they log in....

Here’s some examples of the problems being reported:

TSB have apologised, and say they’re working hard to fix the problems....

Updated

Shares in outsourcing giant Capita have surged by 13% this morning, after it announced plans to raise £700m in fresh capital.

This cash injection should help the company overhaul its operations, and avoid the same fate as Carillion - which slumped into liquidation three months ago.

More here:

Europe’s stock markets are soporifically quiet this morning - perhaps traders have been lulled to sleep by the sunny weather.

Most European indices have dipped into the red, following this morning’s news that exports are being hit by the stronger euro.

In the City, the FTSE 100 is basically flat. Wall Street is expected to dip when trading begins at 2.30pm BST - as the rise in US bond yields keeps investors cautious.

European markets this morning
European markets this morning Photograph: Thomson Reuters

I must confess that I’d expected shares to rise this morning, after North Korea announced on Saturday that it will end its tests of nuclear weapons and intercontinental ballistic missiles

But there’s no sign of a relief rally, as Fiona Cincotta, Senior Market Analyst, at City Index, explains:

Despite Wall Street closing a solid 0.8% lower at the end of last week and mixed trading in Asia overnight, the FTSE stumbled out of the blocks on Monday in a subdued start to the week.

Some geopolitical developments over the weekend, including a further easing of fears of a US china trade war and North Korea agreeing to suspend missile testing and close a nuclear site failed to lift sentiment as much as might have been expected.

Dollar rallies as yields pick up

Eurozone exporters will be pleased to hear that the euro has fallen against the US dollar this morning.

The single currency has shed almost half a percent to $1.2235, as the dollar enjoys a strong morning - tracking the rise in US bond yields.

The pound has also dropped against the dollar, to a two-week low of $1.3976.

Updated

Back in the City, excitement is building as the interest rate (yield) on American 10-year government debt threatens to hit 3% for the first time since January 2014.

It’s really quite close now....

The 3% mark is turning into a psychologically important barrier, as it will highlight how US bond prices have dropped from recent record highs (yields rise as prices fall).

Falling bond yields suggest that traders are expecting US inflation to pick up, forcing America’s central bank - the Federal Reserve - to keep raising interest rates.

Eurozone PMI report: What the experts say

Fred Ducrozet of Swiss bank Pictet is concerned by the slowdown among companies in smaller eurozone nations - and the impact of the stronger euro:

Economist Nadia Gharbi says the eurozone is struggling to keep up with its recent expansion, as supply chains are being stretched hard:

We don’t get separate data from Italy and Spain until early next month; economist Ulrik Bie suspects they won’t be great

Danske Bank’s Aila Mihr predicts that the eurozone PMIs will remain at their current levels for some time:

Although France and Germany are holding up well, the eurozone’s periphery is suffering a sharper slowdown -- to a 18-month low.

This chart from Markit shows the details:

Core vs periphery

Updated

Eurozone growth steady as strong euro bites

Newsflash: growth among eurozone companies remained steady this month, as the strength of the euro hits export growth.

Markit’s Eurozone PMI was unchanged this month at 55.2, comfortably over the 50-point mark separating expansion from contraction. This leaves the eurozone economy in a “lower gear”, Markit says, after the strong growth in 2017.

The service sector picked up, with activity rising to two-month high of 55.0 (from 54.9 in March).

But...manufacturing growth slowed to a 14-month low of 56.0 ( from 56.6 in March).

Factories reported the smallest gains in both total goods orders and export orders for 18 months, partly due the recent strength of the euro against the US dollar.

Chris Williamson, Chief Business Economist at IHS Markit, says growth has “downshifted markedly” in recent months:

The Eurozone economy remained stuck in a lower gear in April, with business activity expanding at a rate unchanged on March, which had in turn been the slowest since the start of 2017.

However, he doesn’t see any signs that Europe is flirting with recession:

“The April data are running at a level broadly consistent with Eurozone GDP growth of approximately 0.6% at the start of the second quarter.

“The decline in the PMI from January’s high is neither surprising nor alarming: such strong growth as that seen at the start of the year rarely persists for long, not least because supply fails to keep up with demand. With recent months seeing record delivery delays for inputs to factories and growing skill shortages, output is clearly being constrained. In France, strikes were also reported to have disrupted growth, and may continue to do so in coming months.

But, the strength of the euro may hold growth back in the months ahead, Williamson adds:

It’s also clear that underlying demand has weakened, in part due to exports being hit by the stronger euro. With companies’ future optimism having slipped to the lowest since last year, it looks likely that growth may well slow further in coming months.”

Updated

Financial blogger Jeroen Blokland is also encouraged by today’s data:

Updated

Financial portfolio manager Mario Cavaggioni is also encouraged by today’s output data from the eurozone’s two biggest members:

Germany’s economy is stabilising this month after suffering a slowdown earlier this year, according to today’s PMI report.

Phil Smith, Principal Economist at IHS Markit explains:

“Growth of Germany’s private sector steadied in April, to arrest the loss of momentum seen in February and March. With both manufacturing and services seeing slightly quicker increases in output, the data show the economy making a solid start to the second quarter.

“There was also a welcome pick-up in the rate of private sector job creation in April. Employment levels rose strongly on a broad-based basis by sector, albeit with the rate of hiring among manufacturers easing from the recent elevated levels.

“However, a further slowdown in new order growth to its weakest for over a year-and-a-half does raise some concerns. This seemed to be reflected in the survey’s measure of business confidence, which slipped further from the highs seen in 2017.”

Here’s more reaction:

German PMI stronger than expected

Newsflash: German’s private sector is growing a little faster than expected, matching France’s performance.

Markit’s ‘flash’ Germany Composite Output Index has risen to 55.3 in April, up from March’s 55.1 - beating forecasts of a fall to 54.8.

However, Markit warns that German business leaders are less optimistic, with new orders rising at their weakest level in18 months.

They say:

The rate of job creation picked up to its highest for three months; however, there was less optimism among businesses towards the outlook for activity in the year ahead amid a further slowdown in new order growth.

After a stellar 2017, Germany’s private sector does seem to have eased back a little.

The German flash PMI
The German flash PMI Photograph: Markit

Reaction to follow....

French growth figures: What the experts say

The increase in the French PMI data this month should ease fears that the country’s economy is weakening.

Alex Gill, economist at IHS Markit, explains:

“The French private sector remained firmly in expansionary mode according to latest flash data. Indeed, at 56.9, the headline composite output figure signalled a sharper rate of growth than in March, and one that remained well above its long-run average (53.9).

“After having shown signs of slowing in recent months, the data will buoy hopes that the renaissance in the French economy has far from run its course. Further encouragement can be garnered from the broad-based nature of the acceleration, with sharper growth evident in both the manufacturing and services sectors, the former on the back of marked moderations in the prior two months.”

His colleague, Chris Williamson, says France seems to be growing at a solid rate:

French growth has picked up this month

The French flag

Newsflash: Growth across France’s private sector has picked up this month, defying worries that the euro area is slowing.

Data firm Markit has just reported that its ‘flash’ PMI survey on the French economy has risen to 56.9 in April, up from 56.3 in March.

That’s a stronger reading than expected - with many economists predicting that growth slowed this month. Any reading over 50 shows growth.

Markit reports that growth accelerated in the service sector, although manufacturing growth did slow a little.

Companies repotted that new orders have picked up this month, encouraging them to keep hiring staff.

Here’s the key findings:

  • Flash France Composite Output Index at 56.9 in April from 56.3 in March (2-month high)
  • Flash France Services Activity Index rises to 57.4 in April (56.9 in March), 2-month high
  • Flash France Manufacturing Output Index up to 54.7 (53.9 in March), 2-month high
  • Flash France Manufacturing PMI drops to 53.4 (53.7 in March) 13-month low

More to follow...

Updated

The agenda: Euro PMI data in focus

The flag of the European Union.

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

Is the ‘euroboom’ alive and well? A new healthcheck on Europe’s businesses this morning will highlight whether growth has slowed in 2018, as geopolitical tensions and trade spats hit confidence.

The ‘flash’ eurozone PMI, calculated by data firm Markit, is expected to dip to 54.8 this month, down from March’s 55.2. That would still show an expansion, but at a slightly slower pace.

Investors would like to see a strong set of PMI data, to ease concerns that Europe might be entering a soggier patch.

Michael Hewson of CMC Markets explains why City investors will be examining the data:

Over in Europe there has been some concern that economic activity has hit its high-water mark in recent months with the only debate over whether it is merely a pause for breath or an early indication of a more significant slowdown. Investors certainly appear concerned if last week’s April investor sentiment ZEW reading was any indication coming in at a 5 year low of -8.2.

Despite this scepticism markets in Europe are still sitting near a one month high, with the recent slide in the euro also helping a little.

Today’s publication of the latest German and French flash PMI data in manufacturing and services could well add further fuel to the debate about economic activity in Europe’s two largest economies.

These have shown signs of slowing in recent months and while it’s not been particularly alarming in terms of the overall headline readings the lack of inflation does speak to a lack of demand on a wider scale.

The data will be closely watched by the European Central Bank, which meets later this week to set monetary policy across the eurozone.

ECB policymakers are pondering whether to end their QE stimulus programme, so weakening growth would create a headache for them.

Also coming up today....

Investors are also looking edgily at the bond market this morning. US government debt has been selling off in recent days, pushing up the yield (or interest rate) on 10-year Treasury bills towards 3% - a crucial level for market confidence.

Hussein Sayed, Chief Market Strategist at FXTM, explains why it matters:

Higher interest rates mean higher borrowing cost for corporates, and another sharp spike would eat away a significant element of their profitability by increasing interest expense. Investors will also readjust their required cost of capital as risk-free rates rise, which could make equities less attractive.

The agenda:

  • 8am BST: French ‘flash’ PMI for April
  • 8.30am BST: German ‘flash’ PMI for April
  • 9am BST: Eurozone ‘flash’ PMI for April

Updated

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