The tragedy of TSB’s botched IT upgrade is that the bank has made things far worse for itself by handling the situation so badly. The Daily Mail headline “Totally Shambolic Bank” summed up the situation for tens of thousands of customers who, two weeks on, continue to complain that they can’t access their bank accounts. Ironically, TSB’s communication has been exemplary in some respects. The bank apologised quickly, promised that customers won’t be left out of pocket, thanked customers for their patience and waived overdraft fees and interest charges. As the crisis dragged on and pressure increased on TSB, the bank upped its response, with increased interest rates for savers and a decision by CEO Paul Pester to forfeit a £2m bonus. Yet TSB’s inability to get to grips with the technical problems have made it virtually impossible to counter the relentlessly negative story in the media.
