Thousands switch away from TSB during online banking chaos - MSE News

Former_MSE_Naomi

Over 20,000 TSB customers switched away from the bank in the months surrounding its IT glitch - its biggest loss of customers since the current account switch service launched...

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'Thousands switch away from TSB during online banking chaos'

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aj23_2

I opened a Classic Plus account on Saturday hassle free in branch. Efficient manager.

He said how they had had resignations and staff taking time off for being ill because of the stress caused by the IT meltdown and customers coming in being unreasonable.

Anthorn

Exactly what I've been advising in these very M.S.E. forums regarding TSB: If it doesn't work, switch! To me it is absolutely ludicrous that people stay with a bank they know will have problems and just complain about it!

aj23_2

Anthorn wrote: »

Exactly what I've been advising in these very M.S.E. forums regarding TSB: If it doesn't work, switch! To me it is absolutely ludicrous that people stay with a bank they know will have problems and just complain about it!

A lot milked it to get free money as a sorry. Those people saying 'I can't pay my bill through online banking due tomorrow because it won't let me log in' isn't the banks fault. Why leave paying a bill until the day before when you've had weeks to pay? Go into a branch, post it, telephone, pay it when it comes in. So many people blamed TSB for things which weren't actually their fault.

eskbanker

As ever, statistics can be portrayed in many different ways to make different points!

21,790 customers switching away during Q2 could be seen as a damning indictment of their well-publicised failings, but put in the context of the overall trend, the figures for the two previous quarters were 14,549 (Q4) and 16,435 (Q1), so 21,790 isn't the business-threatening apocalyptic disaster that some anticipated but arguably just a continuation of what had gone before, as is the declining number of inbound switches.

Also worth considering the overall context of their current account base, where, in their 2017 annual report, they claim 4.6% market share of a total which is (separately) estimated at circa 70m. In other words, they must have over 3m current accounts, and so 21,790 is significantly less than 1% choosing to switch away - I think many would have expected much worse, given the tone of the coverage on here and in the wider media....

And before anyone starts with any nonsense, no, I don't work for them and am not defending them, etc, but just observing that there are (at least) two sides to every story!

karlie88

Personally, I'll happily bank with them - as long as they continue to offer 5% in my current account(s).

However, I appreciate that some people have been through a major inconvenience over the past few months. Whether it's unable to log-in, paying their bills/credit cards on time, managing their business account, delayed salary payments, family members receiving debit cards for their beloved who have moved on from this world....it has been a pretty shambolic period for them.

aj23_2

It's never the banks fault for not paying bills on time or managing an account, personal or business, when you get between 2-4 weeks to pay credit cards and can use branches/post offices to manage accounts as well. Purely the responsibility of the account holders. When you take out a credit card, or any pay later scenario, you are lawfully entering into an agreement to pay on time. If you choose to leave it until the day it's due, it's your own fault only.

minislim

i'm sticking with tsb. as long as they keep their 5% interest as i've had some compensation for their failures too.

EachPenny

eskbanker wrote: »

As ever, statistics can be portrayed in many different ways to make different points!
....
And before anyone starts with any nonsense, no, I don't work for them and am not defending them, etc, but just observing that there are (at least) two sides to every story!

You should know better than to use a rigorous analysis of the data to see through the headline.

Another factor to consider is that the 'net loss' figure - more meaningful in many ways - is as high as it is partly due to the difficulty in opening new accounts. With the return to paying 5% interest more customers might have joined TSB had they been able to.

Something else worth noting, TSB's loss of 21,790 might be high, but NatWest tops the league with 28,802 losses, and a net loss of only 4,600 fewer than TSB. That could also have been the source of dramatic headlines, but many MSE forum members will have a good idea why it shouldn't be.

EachPenny

aj23 wrote: »

It's never the banks fault for not paying bills on time or managing an account...

It is when you have made arrangements for the bills to be paid by direct debit (usually on a date chosen by the beneficiary, often the 'due' date) and for whatever reason the banks systems fail to make that payment.

Likewise where a customer makes arrangements by standing order or future dated payment.

aj23_2

EachPenny wrote: »

It is when you have made arrangements for the bills to be paid by direct debit (usually on a date chosen by the beneficiary, often the 'due' date) and for whatever reason the banks systems fail to make that payment.

Likewise where a customer makes arrangements by standing order or future dated payment.

But for people who were saying 'I can't make a payment because online banking is down' who are not on DD or SO, it's your own fault. If you're on DD or SO and the bank stops it from being taken, you'd be covered against that. Your provider can tell you if the other bank couldn't didn't collect it, or if your bank stopped them from taking it.

My 02 DD wasn't taken in Dec, and 02 said it was my fault/banks fault. Halifax showed me that no attempt was made by 02 to take it, because it they had it would have been taken then returned had Halifax stopped it.