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| TSB appoints Debbie Crosbie as new chief in wake of IT meltdown | TSB appoints Debbie Crosbie as new chief in wake of IT meltdown |
| (about 2 hours later) | |
| TSB has appointed CYBG’s Debbie Crosbie as its chief executive to succeed Paul Pester, who stepped down following an IT meltdown in April that locked up to 1.9 million customers out of their accounts. | TSB has appointed CYBG’s Debbie Crosbie as its chief executive to succeed Paul Pester, who stepped down following an IT meltdown in April that locked up to 1.9 million customers out of their accounts. |
| Crosbie will join from Clydesdale and Yorkshire Bank owner CYBG, where she has worked for more than 20 years and has been chief operating officer since January 2015. She will take up her new role in 2019. Until then, Richard Meddings will continue to run TSB as executive chairman. | |
| While Meddings stopped short of divulging Crosbie’s pay packet, he told journalists her basic salary will be higher than her predecessor’s, which last stood at £913,500. | |
| It will more than double the base salary offered in her current role at CYBG – which sat at £450,000 last year – and is only slightly lower than her total remuneration of £929,000 for 2017, according to the bank’s annual report. | |
| Crosbie’s total take home pay at TSB may temporarily lag behind Pester’s, given that he benefited from bonuses linked to historic performance. | |
| Meddings has been serving as executive chairman since September when Pester left with a payout of at least £1.7m. Pester had previously resisted pressure to quit, despite a stinging rebuke from the Financial Conduct Authority after the botched IT upgrade. TSB’s owner, the Spanish bank Sabadell, moved accounts from an IT system inherited from TSB’s previous owner, Lloyds Banking Group. | |
| TSB said while the biggest problems have been fixed, it is still working on some IT issues. | |
| “Although we still see occasional IT issues and interruptions, the number of these incidents is significantly down and now in line with the wider industry,” Meddings said, adding that over 118,000 complaints have now been “fully resolved” since April. | |
| The chairman is still expecting to have the first portion of a report into the turmoil, currently being carried out by law firm Slaughter and May, published by Christmas or year-end. TSB has spent about £250m so far working to remedy the problems and expects there to be further costs in the fourth quarter. | |
| Crosbie will have a tough job fully resolving the problems and restoring customer confidence in TSB, as well as repairing the bank’s damaged reputation. But Medding hopes that the bank will have drawn a line under most of the troubles before the incoming chief executive takes her post. | |
| “What I expect is that by the end of this year we will have put this behind us. We’ll look back at 2018 and recognise it as a really difficult and challenging year,” he said. | |
| “The TSB brand remains strong. I think it was clearly bruised but it wasn’t fractured,” Meddings added. | |
| Well over 30 candidates emerged for Crosbie’s job at the start of the search, which was finally whittled down to four front runners before she made the final cut. | |
| Meddings said: “In an impressive field of candidates, Debbie stood out. With over two decades of experience, superb retail and SME banking expertise, and a genuinely open and engaging style of leadership, we have found an outstanding new chief executive. | Meddings said: “In an impressive field of candidates, Debbie stood out. With over two decades of experience, superb retail and SME banking expertise, and a genuinely open and engaging style of leadership, we have found an outstanding new chief executive. |
| TSB is now planning to launch new products for the first time since the IT meltdown. | |
| It will include a new business banking service as the challenger prepares to place its bid for a portion of a £775m banking competition fund from Royal Bank of Scotland. The cash – which is being distributed by an independent body – is linked to RBS’s £45bn billion government bailout at the height of the financial crisis. | |
| The application will pit TSB against fellow challenger banks, including digital bank Starling, Metro Bank and Crosbie’s current employer CYBG. | |
| Crosbie said: “The exciting thing about TSB is just how much potential the bank has to redefine banking to better serve customers and their changing financial needs. Thanks to the skill of TSB partners, the strength of TSB’s network, and the capabilities within the bank to deliver, TSB has all the right ingredients to be the leading challenger bank in the UK.” | |
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